Zscaler (NASDAQ:ZS) Coverage Initiated by Analysts at B. Riley

Key Points

• Analysts at B. Riley have initiated coverage of Zscaler (NASDAQ: ZS) with a "neutral" rating and a price target of $275.00, indicating a potential upside of 1.64% from its previous close.
• Other analysts have shown more optimism, with JMP Securities raising their target to $355 and Susquehanna increasing theirs to $320, contributing to a general consensus of a "Moderate Buy" rating.
• Zscaler reported a 22.6% year-over-year revenue increase in its last quarterly earnings, with earnings per share of $0.84, surpassing analysts' expectations.

Analysts at B. Riley assumed coverage on shares of Zscaler (NASDAQ:ZS - Get Free Report) in a report released on Tuesday,Briefing.com Automated Import reports. The firm set a "neutral" rating and a $275.00 price target on the stock. B. Riley's price objective indicates a potential upside of 1.64% from the stock's previous close.

ZS has been the subject of a number of other reports. JMP Securities increased their price target on Zscaler from $310.00 to $355.00 and gave the company a "market outperform" rating in a research note on Tuesday, July 1st. Susquehanna raised their price objective on Zscaler from $245.00 to $320.00 and gave the stock a "positive" rating in a research note on Friday, May 30th. Wall Street Zen raised Zscaler from a "hold" rating to a "buy" rating in a research note on Sunday, June 8th. JPMorgan Chase & Co. raised their price objective on Zscaler from $292.00 to $348.00 and gave the stock an "overweight" rating in a research note on Monday, June 16th. Finally, Wedbush raised their price objective on Zscaler from $240.00 to $300.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, Zscaler has an average rating of "Moderate Buy" and an average price target of $296.49.

Zscaler Stock Up 0.3%

Shares of NASDAQ ZS opened at $270.5670 on Tuesday. The stock's 50 day moving average price is $291.66 and its two-hundred day moving average price is $247.59. Zscaler has a 52-week low of $153.45 and a 52-week high of $318.46. The stock has a market capitalization of $42.13 billion, a P/E ratio of -1,037.85, a PEG ratio of 290.68 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Thursday, May 29th. The company reported $0.84 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. The business had revenue of $678.03 million for the quarter, compared to analysts' expectations of $667.13 million. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The business's quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.88 EPS. Zscaler has set its FY 2025 guidance at 3.180-3.19 EPS. Q4 2025 guidance at EPS. On average, analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Activity

In other news, insider Syam Nair sold 4,064 shares of the firm's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total value of $1,234,236.80. Following the sale, the insider directly owned 106,659 shares of the company's stock, valued at approximately $32,392,338.30. This trade represents a 3.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 3,662 shares of the firm's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $306.72, for a total value of $1,123,208.64. Following the completion of the sale, the insider directly owned 46,813 shares in the company, valued at approximately $14,358,483.36. This represents a 7.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 168,256 shares of company stock valued at $50,618,544. Corporate insiders own 18.10% of the company's stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in ZS. Parcion Private Wealth LLC lifted its stake in Zscaler by 3.3% during the second quarter. Parcion Private Wealth LLC now owns 1,200 shares of the company's stock worth $377,000 after purchasing an additional 38 shares during the period. Secure Asset Management LLC raised its stake in shares of Zscaler by 1.8% in the second quarter. Secure Asset Management LLC now owns 2,436 shares of the company's stock valued at $765,000 after acquiring an additional 43 shares during the last quarter. Tlwm raised its stake in shares of Zscaler by 1.0% in the second quarter. Tlwm now owns 4,649 shares of the company's stock valued at $1,460,000 after acquiring an additional 44 shares during the last quarter. Sepio Capital LP raised its stake in shares of Zscaler by 0.6% in the second quarter. Sepio Capital LP now owns 8,209 shares of the company's stock valued at $2,577,000 after acquiring an additional 45 shares during the last quarter. Finally, Smartleaf Asset Management LLC raised its stake in shares of Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock valued at $204,000 after acquiring an additional 45 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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