Zscaler (NASDAQ:ZS) Price Target Cut to $223.00 by Analysts at Rosenblatt Securities

Key Points

• Rosenblatt Securities cut its price target on Zscaler from $250 to $223, while keeping a buy rating. The new target still implies about 29.6% upside from the stock’s current price.
• Zscaler shares rose 6.9% to $172.11 on the day of the report, after the company posted quarterly results that beat estimates. Revenue came in at $815.75 million and EPS was $1.01, both above analyst expectations.
• Analyst views remain broadly positive despite some target cuts, with MarketBeat showing a Moderate Buy consensus and an average price target of $261.26. Insider selling was also noted, including recent share sales by EVP Raj Judge and insider Robert Schlossman.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price lowered by stock analysts at Rosenblatt Securities from $250.00 to $223.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. Rosenblatt Securities' target price points to a potential upside of 29.57% from the stock's current price.

A number of other research analysts have also recently commented on ZS. Robert W. Baird reduced their target price on shares of Zscaler from $360.00 to $300.00 and set an "outperform" rating for the company in a research note on Monday, February 23rd. Canaccord Genuity Group cut their price objective on shares of Zscaler from $340.00 to $275.00 and set a "buy" rating for the company in a report on Friday, February 27th. KeyCorp lifted their price objective on shares of Zscaler from $160.00 to $190.00 and gave the company an "overweight" rating in a research note on Monday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Zscaler in a research note on Wednesday, January 21st. Finally, Needham & Company LLC cut their target price on Zscaler from $310.00 to $180.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $261.26.

Zscaler Stock Up 6.9%

Shares of NASDAQ ZS traded up $11.06 during trading on Monday, hitting $172.11. 1,091,434 shares of the company traded hands, compared to its average volume of 2,758,598. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The firm has a market capitalization of $27.67 billion, a price-to-earnings ratio of -411.19 and a beta of 0.96. The business's fifty day moving average is $142.95 and its 200 day moving average is $200.02. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. The company had revenue of $815.75 million for the quarter, compared to analysts' expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler's quarterly revenue was up 25.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities research analysts predict that Zscaler will post -0.03 earnings per share for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president directly owned 67,906 shares of the company's stock, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Robert Schlossman sold 2,263 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 $354,363.17. Following the completion of the transaction, the insider owned 72,390 shares of the company's stock, valued at approximately $11,335,550.10. The trade was a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 12,130 shares of company stock worth $1,892,487 over the last 90 days. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of hedge funds have recently bought and sold shares of ZS. Groupama Asset Managment lifted its holdings in Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock valued at $1,423,385,000 after acquiring an additional 4,743,787 shares during the period. First Trust Advisors LP lifted its stake in shares of 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 in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Zscaler by 43.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock worth $578,576,000 after buying an additional 777,414 shares during the period. AQR Capital Management LLC increased its stake in Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after buying an additional 741,756 shares in the last quarter. Finally, Pictet Asset Management Holding SA raised its holdings in Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock valued at $269,285,000 after acquiring an additional 661,413 shares during the period. Hedge funds and other institutional investors own 46.45% of the company's stock.

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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