Zscaler, Inc. (NASDAQ:ZS) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• "Moderate Buy" consensus from 42 analysts (31 Buy, 2 Strong Buy, 8 Hold, 1 Sell) with an average 12‑month target of about $267.86.
• Recent negative analyst action—BTIG cut ZS to Neutral and removed its target—triggered an ~8–9% intraday selloff and helped push Zscaler to a 52‑week low amid concerns about slowing growth and margin pressure.
• Company insiders have been sellers (CFO sold 1,682 shares, EVP sold 2,488; 12,130 shares sold over 90 days) even as Zscaler recently beat quarterly EPS and revenue estimates with revenue up 25.9% year‑over‑year.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) has earned a consensus rating of "Moderate Buy" from the forty-two brokerages that are covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating, eight have given a hold rating, thirty-one have assigned a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $267.8649.

Several equities research analysts have commented on the stock. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a report on Friday, March 27th. TD Cowen lowered their price target on shares of Zscaler from $330.00 to $260.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Wells Fargo & Company assumed coverage on shares of Zscaler in a report on Tuesday, March 3rd. They issued an "overweight" rating and a $200.00 price target on the stock. Royal Bank Of Canada lowered their price target on shares of Zscaler from $250.00 to $205.00 and set an "outperform" rating on the stock in a report on Friday, February 27th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Zscaler in a report on Wednesday, January 21st.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Some commentators view the sharp pullback as a potential buying opportunity if long-term cloud-security adoption remains intact; the Yahoo piece examines whether today's weakness creates an entry point. Has The Zscaler (ZS) Share Price Slump Opened A Window Of Opportunity?
• Neutral Sentiment: Analysts and outlets are debating valuation — some ask whether the cybersecurity “boom” is already priced in, leaving limited upside absent reacceleration in growth. This framing is more analytical than immediately bullish or bearish. BTIG Cuts Zscaler to Neutral: Has the Cybersecurity Boom Already Been Priced Into This Stock?
• Negative Sentiment: BTIG downgraded ZS from Buy to Neutral (removing its price target), citing rising competition and a more cautious near-term outlook; that downgrade triggered heavy selling. This Analyst Just Cut Zscaler Stock to 'Neutral.' Here's Why.
• Negative Sentiment: Market reaction was sharp: multiple outlets report ZS plunged intraday after the BTIG note (an ~8–9% move in morning trade), reflecting sentiment-driven downside risk in the near term. Why Zscaler (ZS) Shares Are Falling Today
• Negative Sentiment: Coverage notes Zscaler hit a 52-week low as Wall Street grows more worried about slowing growth and margin pressures, increasing the risk that negative sentiment persists until growth visibility improves. Zscaler hit 52-week low as Wall Street becomes worried over its slowing growth

Insider Buying and Selling at Zscaler

In other news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares of the company's stock, valued at $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Raj Judge sold 2,488 shares of the stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the sale, the executive vice president directly owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently modified their holdings of the company. Rockefeller Capital Management L.P. boosted its stake in shares of Zscaler by 5.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 13,344 shares of the company's stock worth $3,001,000 after acquiring an additional 708 shares in the last quarter. Spear Advisors LLC purchased a new stake in shares of Zscaler during the 4th quarter worth about $3,460,000. EMC Capital Management boosted its stake in shares of Zscaler by 779.1% during the 4th quarter. EMC Capital Management now owns 3,780 shares of the company's stock worth $819,000 after acquiring an additional 3,350 shares in the last quarter. Worthington Financial Partners LLC purchased a new stake in shares of Zscaler during the 4th quarter worth about $720,000. Finally, Sentinel Dome Partners LLC purchased a new stake in shares of Zscaler during the 4th quarter worth about $990,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Price Performance

NASDAQ:ZS opened at $118.05 on Monday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The firm has a market cap of $18.98 billion, a price-to-earnings ratio of -281.07 and a beta of 1.12. The firm's fifty day moving average is $155.64 and its two-hundred day moving average is $226.98.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. During the same period in the prior year, the company earned $0.78 earnings per share. The firm's revenue was up 25.9% on a year-over-year basis. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Research analysts expect that Zscaler will post -0.1 EPS for the current year.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.

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