Zscaler (NASDAQ:ZS) Sets New 52-Week High - Should You Buy?

Key Points

• Zscaler, Inc. shares reached a new 52-week high of $319.89 during trading, showing significant investor interest with a volume of 188,998 shares traded.
• Analysts have a positive outlook on Zscaler, with multiple institutions raising their price targets, including Wells Fargo increasing its target from $260.00 to $385.00 and rating it as "overweight."
• The company's recent earnings report exceeded expectations, with a revenue of $719.23 million and earnings per share of $0.89, up 21.3% year-over-year.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) shares reached a new 52-week high during trading on Friday . The company traded as high as $319.89 and last traded at $319.41, with a volume of 188998 shares traded. The stock had previously closed at $315.21.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ZS shares. Stifel Nicolaus boosted their price objective on Zscaler from $295.00 to $330.00 and gave the stock a "buy" rating in a research note on Wednesday, September 3rd. JMP Securities reissued a "market outperform" rating and issued a $355.00 price objective on shares of Zscaler in a research note on Wednesday, September 3rd. Barclays boosted their target price on Zscaler from $300.00 to $320.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 3rd. Wells Fargo & Company raised Zscaler from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $260.00 to $385.00 in a research report on Friday, June 13th. Finally, Piper Sandler boosted their target price on Zscaler from $260.00 to $280.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $307.43.

Zscaler Stock Up 0.5%

The company has a debt-to-equity ratio of 0.95, a current ratio of 2.01 and a quick ratio of 2.01. The firm has a market cap of $50.15 billion, a PE ratio of -1,181.54 and a beta of 1.06. The business has a fifty day moving average price of $283.68 and a two-hundred day moving average price of $266.35.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The business had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. During the same quarter in the previous year, the company posted $0.88 earnings per share. Zscaler'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. On average, analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Transactions at Zscaler

In other Zscaler news, EVP Raj Judge sold 4,524 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $1,269,886.80. Following the transaction, the executive vice president owned 73,832 shares in the company, valued at $20,724,642.40. The trade was a 5.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,865 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $804,205.50. Following the completion of the sale, the chief executive officer directly owned 350,700 shares of the company's stock, valued at $98,441,490. This represents a 0.81% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 39,884 shares of company stock worth $11,406,825. 18.10% of the stock is owned by company insiders.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently made changes to their positions in the stock. Quaker Wealth Management LLC lifted its position 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 purchasing an additional 194 shares during the last quarter. Exane Asset Management lifted its position 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 purchasing an additional 65 shares during the last quarter. Kozak & Associates Inc. acquired a new position in shares of Zscaler during the 2nd quarter worth about $35,000. ORG Partners LLC lifted its position in shares of Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after purchasing an additional 94 shares during the last quarter. Finally, SVB Wealth LLC acquired a new position in shares of Zscaler during the 1st quarter worth about $26,000. Institutional investors and hedge funds 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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