Zscaler (NASDAQ:ZS) Receives "Outperform" Rating from Wedbush

Key Points

• Zscaler's stock received an "outperform" rating from Wedbush, with a price target of $330.00, indicating a potential upside of 24.81% from its previous close.
• Other analysts have also shown confidence in Zscaler, with Oppenheimer increasing their price target to $345.00 and several firms reaffirming "buy" ratings.
• Zscaler reported a revenue increase of 21.3% year-over-year, with earnings per share of $0.89 for the latest quarter, exceeding consensus estimates.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "outperform" rating reiterated by equities researchers at Wedbush in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $330.00 price target on the stock. Wedbush's price objective would indicate a potential upside of 24.81% from the stock's previous close.

A number of other analysts also recently weighed in on ZS. Oppenheimer lifted their price target on Zscaler from $290.00 to $345.00 and gave the company an "outperform" rating in a research note on Friday, June 6th. BTIG Research reiterated a "buy" rating on shares of Zscaler in a research note on Thursday, July 10th. FBN Securities raised Zscaler to a "strong-buy" rating in a report on Friday, May 30th. Piper Sandler increased their target price on Zscaler from $260.00 to $280.00 and gave the stock a "neutral" rating in a report on Wednesday. Finally, Needham & Company LLC restated a "buy" rating and issued a $350.00 target price on shares of Zscaler in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $305.91.

Zscaler Stock Down 3.7%

NASDAQ:ZS traded down $10.16 during mid-day trading on Wednesday, reaching $264.41. 2,142,495 shares of the stock were exchanged, compared to its average volume of 2,135,269. The company has a 50 day simple moving average of $287.86 and a 200-day simple moving average of $249.96. The stock has a market capitalization of $41.17 billion, a P/E ratio of -1,016.19, a P/E/G ratio of 259.58 and a beta of 1.05. Zscaler has a 1 year low of $153.45 and a 1 year high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its 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. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The company had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. During the same period last year, the business posted $0.88 EPS. The company'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, research analysts predict that Zscaler will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, EVP Raj Judge sold 2,957 shares of the company'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 sale, the executive vice president owned 76,289 shares in the company, valued at approximately $23,168,969.30. The trade was a 3.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the company'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 $865,241.30. Following the sale, the chief executive officer owned 353,565 shares of the company's stock, valued at $107,377,690.50. The trade was a 0.80% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 143,305 shares of company stock worth $43,199,936. 18.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC grew its holdings in Zscaler by 43.1% during the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock worth $127,000 after purchasing an additional 193 shares during the period. Allworth Financial LP grew its holdings in Zscaler by 47.4% during the first quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after purchasing an additional 322 shares during the period. Krane Funds Advisors LLC grew its holdings in Zscaler by 36.4% during the first quarter. Krane Funds Advisors LLC now owns 1,667 shares of the company's stock worth $331,000 after purchasing an additional 445 shares during the period. Merit Financial Group LLC grew its holdings in Zscaler by 42.0% during the first quarter. Merit Financial Group LLC now owns 6,197 shares of the company's stock worth $1,230,000 after purchasing an additional 1,832 shares during the period. Finally, National Pension Service lifted its position in Zscaler by 11.2% during the first quarter. National Pension Service now owns 171,847 shares of the company's stock worth $34,098,000 after acquiring an additional 17,342 shares during the last quarter. Institutional investors own 46.45% of the company's stock.

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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