Zscaler (NASDAQ:ZS) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Analysts at Robert W. Baird have increased their price target for Zscaler from $330 to $345, projecting a potential upside of 25.65% from the previous close.
• Zscaler reported earnings of $0.89 per share for the last quarter, surpassing estimates, with revenue increasing 21.3% year-over-year to $719.23 million.
• Currently, Zscaler has a consensus rating of "Moderate Buy" from analysts, with a consensus price target of approximately $300.63.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective increased by equities research analysts at Robert W. Baird from $330.00 to $345.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Robert W. Baird's price target would indicate a potential upside of 25.65% from the stock's previous close.

ZS has been the subject of a number of other reports. Piper Sandler reissued a "neutral" rating and set a $260.00 price target (up from $235.00) on shares of Zscaler in a research note on Friday, May 30th. Stifel Nicolaus upped their target price on Zscaler from $270.00 to $295.00 and gave the stock a "buy" rating in a report on Friday, May 30th. FBN Securities upgraded shares of Zscaler to a "strong-buy" rating in a report on Friday, May 30th. Morgan Stanley upgraded shares of Zscaler from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $280.00 to $320.00 in a research note on Tuesday. Finally, Scotiabank lifted their price target on shares of Zscaler from $310.00 to $360.00 and gave the stock a "sector outperform" rating in a report on Friday, June 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus price target of $300.63.

Zscaler Stock Down 0.9%

ZS stock opened at $274.57 on Wednesday. The firm has a market capitalization of $42.75 billion, a P/E ratio of -1,056.04, a price-to-earnings-growth ratio of 259.58 and a beta of 1.05. Zscaler has a 52 week low of $153.45 and a 52 week high of $318.46. The company has a fifty day simple moving average of $287.86 and a two-hundred day simple moving average of $249.96.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly 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. The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.Zscaler's quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.88 EPS. 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, analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,849 shares of the stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value 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. This represents a 0.80% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Raj Judge sold 2,957 shares of Zscaler stock in a transaction that occurred 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 sale, the executive vice president owned 76,289 shares of the company's stock, valued at approximately $23,168,969.30. The trade was a 3.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 143,305 shares of company stock valued at $43,199,936 over the last quarter. Company insiders own 18.10% of the company's stock.

Institutional Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company's stock valued at $3,363,909,000 after acquiring an additional 824,626 shares during the period. Goldman Sachs Group Inc. raised its position in Zscaler by 23.4% during the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock worth $604,831,000 after acquiring an additional 578,883 shares during the period. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Zscaler during the first quarter worth about $516,622,000. Geode Capital Management LLC raised its position in shares of Zscaler by 6.0% during the 2nd quarter. Geode Capital Management LLC now owns 1,866,329 shares of the company's stock worth $584,160,000 after purchasing an additional 105,318 shares during the last quarter. Finally, AQR Capital Management LLC lifted its stake in Zscaler by 0.7% in the 2nd quarter. AQR Capital Management LLC now owns 1,199,815 shares of the company's stock valued at $371,823,000 after buying an additional 7,885 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

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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