Zscaler (NASDAQ:ZS) Hits New 1-Year High - Here's Why

Key Points

• Zscaler reached a new 52-week high by trading at $327.18 on Friday, with a significant volume of 224,198 shares traded.
• Multiple analysts recently increased their price targets for Zscaler, with Stifel Nicolaus setting a target of $330.00 and KeyCorp raising theirs to $350.00.
• The company reported quarterly earnings of $0.89 EPS, surpassing estimates, and a revenue increase of 21.3% year-over-year at $719.23 million.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) reached a new 52-week high during trading on Friday . The company traded as high as $325.65 and last traded at $327.18, with a volume of 224198 shares traded. The stock had previously closed at $318.77.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on ZS shares. Stifel Nicolaus boosted their price target on shares of Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. KeyCorp boosted their price target on shares of Zscaler from $345.00 to $350.00 and gave the company an "overweight" rating in a report on Wednesday, September 3rd. Robert W. Baird boosted their price target on shares of Zscaler from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Wednesday, September 3rd. B. Riley started coverage on shares of Zscaler in a report on Tuesday, August 26th. They set a "neutral" rating and a $275.00 price target on the stock. Finally, Scotiabank cut their price target on shares of Zscaler from $360.00 to $334.00 and set a "sector outperform" rating on the stock in a report on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and a consensus target price of $307.86.

Zscaler Price Performance

The stock's 50-day moving average is $289.57 and its 200 day moving average is $273.74. The stock has a market capitalization of $51.18 billion, a PE ratio of -1,197.39 and a beta of 1.06. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The firm had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. During the same period in the previous year, the firm posted $0.88 earnings per share. The firm's revenue was up 21.3% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, equities analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 7,006 shares of the business's stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $305.57, for a total value of $2,140,823.42. Following the completion of the sale, the insider directly owned 76,132 shares of the company's stock, valued at $23,263,655.24. The trade was a 8.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Adam Geller sold 10,464 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $284.25, for a total transaction of $2,974,392.00. Following the completion of the sale, the insider directly owned 43,478 shares of the company's stock, valued at $12,358,621.50. This represents a 19.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 39,884 shares of company stock valued at $11,406,825. 18.10% of the stock is currently owned by insiders.

Institutional Trading of Zscaler

Large investors have recently added to or reduced their stakes in the business. Tradewinds Capital Management LLC grew its position in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company's stock worth $26,000 after acquiring an additional 51 shares in the last quarter. McIlrath & Eck LLC bought a new stake in shares of Zscaler during the 3rd quarter worth $29,000. Quaker Wealth Management LLC boosted its holdings in shares of Zscaler by 200.0% during the 2nd 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 boosted its holdings in shares of Zscaler by 185.7% during the 2nd quarter. Exane Asset Management now owns 100 shares of the company's stock worth $31,000 after buying an additional 65 shares during the period. Finally, Kozak & Associates Inc. bought a new stake in shares of Zscaler during the 2nd quarter worth $35,000. 46.45% of the stock is owned by institutional investors.

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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