Zscaler (NASDAQ:ZS) Stock Price Expected to Rise, KeyCorp Analyst Says

Key Points

• KeyCorp analysts have raised their price target for Zscaler (NASDAQ:ZS) from $345.00 to $350.00, suggesting a potential upside of 27.47% from its previous close.
• The company reported $0.89 earnings per share for the last quarter, exceeding the consensus estimate of $0.80 and showing a 21.3% increase in revenue compared to the previous year.
• In recent months, several brokerages have rated Zscaler positively, with one analyst giving it a Strong Buy rating while the consensus remains a Moderate Buy with a target price of approximately $303.34.

Zscaler (NASDAQ:ZS - Get Free Report) had its price target increased by investment analysts at KeyCorp from $345.00 to $350.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. KeyCorp's target price indicates a potential upside of 27.47% from the stock's previous close.

Several other brokerages also recently commented on ZS. Mizuho raised their target price on Zscaler from $275.00 to $290.00 and gave the company a "neutral" rating in a report on Wednesday, June 4th. Wedbush raised their target price on Zscaler from $240.00 to $300.00 and gave the company an "outperform" rating in a report on Friday, May 30th. Rosenblatt Securities raised their target price on Zscaler from $315.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday. FBN Securities upgraded Zscaler to a "strong-buy" rating in a report on Friday, May 30th. Finally, Bank of America raised their target price on Zscaler from $285.00 to $340.00 and gave the company a "buy" rating in a report on Monday, June 9th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, Zscaler has a consensus rating of "Moderate Buy" and a consensus price target of $303.34.

Zscaler Stock Performance

Zscaler stock opened at $274.57 on Wednesday. The firm has a market capitalization of $42.75 billion, a price-to-earnings ratio of -1,056.04, a price-to-earnings-growth ratio of 259.58 and a beta of 1.05. Zscaler has a fifty-two week low of $153.45 and a fifty-two week high of $318.46. The stock's fifty day moving average is $287.86 and its two-hundred day moving average is $249.96.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, topping 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 firm had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. During the same period in the prior year, the business posted $0.88 earnings per share. The firm'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 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Jagtar Singh Chaudhry sold 2,849 shares of Zscaler stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $865,241.30. Following the transaction, the chief executive officer owned 353,565 shares in the company, valued at approximately $107,377,690.50. The trade was a 0.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Syam Nair sold 4,064 shares of Zscaler stock in a transaction 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 transaction, the insider owned 106,659 shares in the company, valued at $32,392,338.30. This represents a 3.67% 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 corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Parcion Private Wealth LLC grew its stake in Zscaler by 3.3% in the second quarter. Parcion Private Wealth LLC now owns 1,200 shares of the company's stock valued at $377,000 after purchasing an additional 38 shares in the last quarter. Secure Asset Management LLC lifted its position in shares of Zscaler by 1.8% during the 2nd 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 last quarter. Tlwm grew its holdings in shares of Zscaler by 1.0% during the 2nd quarter. Tlwm now owns 4,649 shares of the company's stock worth $1,460,000 after purchasing an additional 44 shares in the last quarter. Sepio Capital LP grew its holdings in shares of Zscaler by 0.6% during the 2nd quarter. Sepio Capital LP now owns 8,209 shares of the company's stock worth $2,577,000 after purchasing an additional 45 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in shares of Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock worth $204,000 after purchasing an additional 45 shares in 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.

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