Zscaler (NASDAQ:ZS) Receives "Buy" Rating from Needham & Company LLC

Key Points

• Zscaler's stock has been given a "buy" rating by Needham & Company, with a price target of $350.00, indicating a potential upside of 27.47% from its current price.
• The company reported earnings per share of $0.89 for the quarter, surpassing estimates by $0.09, and its revenue increased by 21.3% compared to the previous year.
• Insiders have recently sold shares, with notable transactions averaging $303.70 per share, leading to a 3.7% decrease in their ownership positions.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "buy" rating restated by research analysts at Needham & Company LLC in a research report issued to clients and investors on Wednesday,Benzinga reports. They currently have a $350.00 price target on the stock. Needham & Company LLC's target price suggests a potential upside of 27.47% from the company's current price.

A number of other research analysts have also issued reports on ZS. Wall Street Zen lowered Zscaler from a "buy" rating to a "hold" rating in a research report on Saturday. BTIG Research reaffirmed a "buy" rating on shares of Zscaler in a report on Thursday, July 10th. Roth Capital reiterated a "neutral" rating on shares of Zscaler in a research report on Wednesday, May 28th. Guggenheim reissued a "neutral" rating on shares of Zscaler in a research note on Friday, May 30th. Finally, KeyCorp raised their price target on shares of Zscaler from $290.00 to $310.00 and gave the company an "overweight" rating in a research note on Friday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $300.63.

Zscaler Stock Down 0.9%

ZS stock opened at $274.57 on Wednesday. Zscaler has a 52-week low of $153.45 and a 52-week high of $318.46. The firm has a market cap of $42.75 billion, a P/E ratio of -1,056.04, a PEG ratio of 259.58 and a beta of 1.05. The company's 50-day simple moving average is $287.86 and its 200-day simple moving average is $249.96.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.09. The firm had revenue of $719.23 million during the quarter, compared to analyst estimates 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 for the quarter was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the business 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. On average, analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Raj Judge sold 2,957 shares of the business's stock in a transaction that occurred on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $898,040.90. Following the transaction, the executive vice president directly owned 76,289 shares in the company, valued at $23,168,969.30. The trade was a 3.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Syam Nair sold 4,064 shares of the company's stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value of $1,234,236.80. Following the completion of the sale, the insider owned 106,659 shares of the company's stock, valued at $32,392,338.30. This trade represents a 3.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 143,305 shares of company stock worth $43,199,936. 18.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Zscaler in the first quarter valued at about $516,622,000. Federated Hermes Inc. raised its position in shares of Zscaler by 314.0% during the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company's stock valued at $367,932,000 after buying an additional 888,888 shares during the period. Vanguard Group Inc. raised its position in shares of Zscaler by 8.3% during the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company's stock valued at $3,363,909,000 after buying an additional 824,626 shares during the period. Nuveen LLC acquired a new position in Zscaler in the first quarter valued at approximately $153,340,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock valued at $604,831,000 after acquiring an additional 578,883 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.