Zscaler (NASDAQ:ZS) Earns "Neutral" Rating from Guggenheim

Key Points

• Zscaler (NASDAQ:ZS) received a "neutral" rating from Guggenheim, while other firms have issued various ratings ranging from "overweight" to "buy" with target prices from $240.00 to $355.00.
• Shares of Zscaler experienced a 4.7% decline on Wednesday, trading at $261.73, with an overall market cap of $40.75 billion.
• For the latest quarter, Zscaler reported an EPS of $0.89, exceeding estimates, and a 21.3% year-over-year revenue growth, totaling $719.23 million.

Guggenheim restated their neutral rating on shares of Zscaler (NASDAQ:ZS - Free Report) in a report issued on Wednesday morning,Benzinga reports.

A number of other brokerages have also issued reports on ZS. Piper Sandler increased their price target on Zscaler from $260.00 to $280.00 and gave the company a "neutral" rating in a research note on Wednesday. Barclays increased their target price on Zscaler from $290.00 to $300.00 and gave the company an "overweight" rating in a report on Monday, August 25th. Rosenblatt Securities increased their price objective on Zscaler from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Wednesday. Needham & Company LLC reissued a "buy" rating and set a $350.00 target price on shares of Zscaler in a research report on Wednesday. Finally, Loop Capital raised their price target on Zscaler from $250.00 to $260.00 and gave the company a "hold" rating in a research report on Friday, May 30th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $307.00.

Zscaler Stock Performance

Shares of Zscaler stock traded up $5.95 on Wednesday, reaching $274.20. 1,620,011 shares of the company were exchanged, compared to its average volume of 1,603,908. Zscaler has a 1-year low of $153.45 and a 1-year high of $318.46. The firm has a market cap of $42.69 billion, a price-to-earnings ratio of -1,015.56, a P/E/G ratio of 226.46 and a beta of 1.05. The company's 50-day moving average is $285.29 and its two-hundred day moving average is $251.14.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.49% and a negative net margin of 1.55%.The business had revenue of $719.23 million during the quarter, compared to analyst estimates of $707.15 million. During the same period in the prior year, the company posted $0.88 EPS. The business's revenue for the quarter was up 21.3% compared to the same quarter last year. 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, sell-side analysts forecast that Zscaler will post -0.1 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Ajay Mangal sold 120,000 shares of the business's stock in a transaction on 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 owned 2,550,210 shares of the company's stock, valued at $767,332,686.90. The trade was a 4.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Raj Judge sold 2,957 shares of the business's stock in a transaction on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total transaction of $898,040.90. Following the completion of the transaction, the executive vice president directly owned 76,289 shares of the company's stock, valued at $23,168,969.30. This trade represents a 3.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 143,305 shares of company stock worth $43,199,936 over the last ninety days. Insiders own 18.10% of the company's stock.

Hedge Funds Weigh In On Zscaler

A number of large investors have recently modified their holdings of the business. Parcion Private Wealth LLC lifted its position 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 acquiring an additional 38 shares during the last quarter. Secure Asset Management LLC increased its holdings in shares of Zscaler by 1.8% during the second quarter. Secure Asset Management LLC now owns 2,436 shares of the company's stock worth $765,000 after purchasing an additional 43 shares during the period. Tlwm increased its stake in 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 increased its stake in 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 boosted its position in 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 buying an additional 45 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.