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

Key Points

• Analysts rate Zscaler a “Moderate Buy”: Of 41 analysts, 34 recommend buying, six say hold and one recommends selling. The average 12-month price target is $214.21.
• Recent quarterly results exceeded expectations: Zscaler reported adjusted EPS of $1.08 versus the $1.01 consensus estimate, while revenue rose 25.4% year over year to $850.48 million.
• Institutional investors hold significant influence: Institutions own 46.45% of Zscaler, with major investors including BlackRock, First Trust Advisors and T. Rowe Price increasing or initiating positions.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) has been given an average rating of "Moderate Buy" by the forty-one ratings firms that are presently covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and thirty-four have issued a buy recommendation on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $214.2051.

ZS has been the subject of several analyst reports. B. Riley Financial reduced their price target on Zscaler from $225.00 to $215.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Zacks Research upgraded shares of Zscaler from a "strong sell" rating to a "hold" rating in a research note on Wednesday, May 27th. Berenberg Bank set a $200.00 price objective on shares of Zscaler in a research report on Thursday, May 28th. Weiss Ratings restated a "sell (e+)" rating on shares of Zscaler in a research note on Tuesday, June 9th. Finally, HC Wainwright raised shares of Zscaler from a "buy" rating to a "buy" rating in a report on Monday, May 18th.

Insiders Place Their Bets

In other news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company's stock, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the sale, the insider directly owned 69,366 shares in the company, valued at $8,769,943.38. This trade represents a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 16,269 shares of company stock worth $2,052,589 in the last 90 days. 17.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several hedge funds and other institutional investors have recently bought and sold shares of ZS. BlackRock Inc. purchased a new stake in Zscaler in the second quarter worth approximately $1,396,028,000. First Trust Advisors LP raised its stake in Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after buying an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after buying an additional 777,414 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after buying an additional 741,756 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Zscaler in the 2nd quarter worth $102,271,000. Institutional investors own 46.45% of the company's stock.

Zscaler Stock Performance

Zscaler stock opened at $183.60 on Friday. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a market capitalization of $29.69 billion, a P/E ratio of -382.49, a PEG ratio of 66.08 and a beta of 0.94. The stock's 50 day moving average is $145.58 and its 200 day moving average is $151.50.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. During the same quarter in the previous year, the business earned $0.84 earnings per share. The firm's quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities research analysts predict that Zscaler will post 0.12 earnings per share for the current fiscal year.

Zscaler Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source