Zscaler (NASDAQ:ZS) Given Market Outperform Rating at JMP Securities

Key Points

• JMP Securities has reissued a "market outperform" rating for Zscaler with a price target of $355.00, indicating a potential upside of 34% from its current price.
• Zscaler reported earnings with an EPS of $0.89, surpassing estimates, and its revenue increased 21.3% year-over-year, totaling $719.23 million.
• Recent transactions revealed insider sell-offs, with major shareholders cutting their holdings, including a sale from Ajay Mangal of 120,000 shares valued at over $36 million.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "market outperform" rating reissued by equities research analysts at JMP Securities in a report released on Wednesday,Benzinga reports. They presently have a $355.00 price target on the stock. JMP Securities' price target would indicate a potential upside of 34.00% from the company's current price.

Other equities analysts also recently issued research reports about the company. Rosenblatt Securities raised their target price on Zscaler from $315.00 to $330.00 and gave the stock a "buy" rating in a research report on Wednesday. Susquehanna lifted their target price on Zscaler from $245.00 to $320.00 and gave the company a "positive" rating in a research note on Friday, May 30th. Morgan Stanley raised Zscaler from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $280.00 to $320.00 in a research note on Tuesday. Piper Sandler lifted their target price on Zscaler from $260.00 to $280.00 and gave the company a "neutral" rating in a research note on Wednesday. Finally, Wall Street Zen cut Zscaler from a "buy" rating to a "hold" rating in a research note on Saturday. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $303.17.

Zscaler Price Performance

Zscaler stock opened at $264.92 on Wednesday. The company has a market capitalization of $41.25 billion, a PE ratio of -1,020.73, a price-to-earnings-growth ratio of 259.58 and a beta of 1.05. Zscaler has a one year low of $153.45 and a one year high of $318.46. The business has a 50 day simple moving average of $287.86 and a 200 day simple moving average of $249.96.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.80 by $0.09. The business had revenue of $719.23 million during the quarter, compared to the consensus estimate of $707.15 million. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.Zscaler's revenue was up 21.3% on a year-over-year basis. During the same quarter last year, the company earned $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. Equities analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In other Zscaler news, insider Syam Nair sold 4,064 shares of the business'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 completion of the transaction, the insider directly owned 106,659 shares of the company's stock, valued at approximately $32,392,338.30. The trade was a 3.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Ajay Mangal sold 120,000 shares of the business's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the transaction, the insider directly owned 2,550,210 shares of the company's stock, valued at approximately $767,332,686.90. The trade was a 4.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 143,305 shares of company stock valued at $43,199,936. Insiders own 18.10% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Quaker Wealth Management LLC boosted its position in shares of Zscaler by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company's stock worth $30,000 after buying an additional 194 shares during the period. Exane Asset Management grew its position in shares of Zscaler by 185.7% in the second quarter. Exane Asset Management now owns 100 shares of the company's stock valued at $31,000 after purchasing an additional 65 shares during the last quarter. Kozak & Associates Inc. acquired a new stake in Zscaler during the second quarter worth approximately $35,000. ORG Partners LLC grew its position in Zscaler by 284.8% during the first quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after buying an additional 94 shares in the last quarter. Finally, SVB Wealth LLC acquired a new stake in Zscaler during the first quarter worth approximately $26,000. 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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