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

Key Points

• Piper Sandler has raised its target price for Zscaler from $260 to $280, indicating a potential upside of 1.98%, while holding a "neutral" rating on the stock.
• Other brokerages are more bullish, with Rosenblatt Securities increasing its target to $330 and maintaining a "buy" rating, while Cantor Fitzgerald set a higher target of $340.
• Zscaler reported a quarterly earnings per share (EPS) of $0.89, surpassing analyst expectations of $0.80, and its revenue rose by 21.3% year-over-year to $719.23 million.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price lifted by Piper Sandler from $260.00 to $280.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Piper Sandler's price objective suggests a potential upside of 1.98% from the stock's previous close.

A number of other brokerages also recently weighed in on ZS. Rosenblatt Securities boosted their price target on shares of Zscaler from $315.00 to $330.00 and gave the stock a "buy" rating in a report on Wednesday. Stephens restated an "overweight" rating and issued a $255.00 price objective on shares of Zscaler in a research report on Tuesday, May 27th. Guggenheim reaffirmed a "neutral" rating on shares of Zscaler in a research note on Friday, May 30th. Cantor Fitzgerald reissued an "overweight" rating and set a $340.00 price objective on shares of Zscaler in a research note on Thursday, August 28th. Finally, Truist Financial reaffirmed a "buy" rating and issued a $300.00 price target (up previously from $260.00) on shares of Zscaler in a research note on Friday, May 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and a consensus target price of $303.34.

Zscaler Stock Down 0.9%

NASDAQ ZS opened at $274.57 on Wednesday. Zscaler has a 12-month low of $153.45 and a 12-month high of $318.46. The firm's 50 day moving average is $287.86 and its 200-day moving average is $249.96. The company has a market capitalization of $42.75 billion, a PE ratio of -1,056.04, a price-to-earnings-growth ratio of 259.58 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The business had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. During the same period last year, the firm earned $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. As a group, sell-side analysts expect that Zscaler will post -0.1 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Jagtar Singh Chaudhry sold 2,849 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 $865,241.30. Following the completion of the sale, the chief executive officer directly 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Syam Nair sold 4,064 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 value of $1,234,236.80. Following the sale, the insider owned 106,659 shares of the company's stock, valued at $32,392,338.30. The trade was 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 valued at $43,199,936. 18.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Quaker Wealth Management LLC grew its stake in 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 buying an additional 194 shares during the last quarter. Exane Asset Management grew its stake in Zscaler by 185.7% during the 2nd quarter. Exane Asset Management now owns 100 shares of the company's stock worth $31,000 after buying an additional 65 shares during the last quarter. Kozak & Associates Inc. purchased a new position in Zscaler during the 2nd quarter worth approximately $35,000. ORG Partners LLC grew its stake in Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after buying an additional 94 shares during the last quarter. Finally, SVB Wealth LLC purchased a new position in shares of Zscaler in the 1st quarter valued at approximately $26,000. Hedge funds and other 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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