Zscaler (NASDAQ:ZS) Stock Price Up 7.8% - Still a Buy?

Key Points

• Zscaler shares rose 7.8% on Tuesday, trading as high as $150.52 after closing at $141.82 the prior session. Trading volume was well below average, with 867,325 shares changing hands versus a 3.6 million daily average.
• Analysts remain broadly positive on the stock, with 34 Buy ratings, six Holds, and one Sell. MarketBeat says the average rating is “Moderate Buy,” with an average price target of $213.97.
• Recent earnings topped expectations, as Zscaler reported $1.08 EPS on revenue of $850.48 million, both above estimates and up 25.4% year over year. The company also issued Q4 2026 and FY 2026 guidance, while insiders recently sold shares to cover tax withholding from equity awards.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) was up 7.8% on Tuesday . The company traded as high as $150.52 and last traded at $152.8560. 867,325 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 3,598,740 shares. The stock had previously closed at $141.82.

Wall Street Analyst Weigh In

ZS has been the topic of a number of recent analyst reports. FBN Securities reiterated an "outperform" rating and set a $175.00 price target on shares of Zscaler in a research report on Wednesday, May 27th. The Goldman Sachs Group restated a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Truist Financial set a $210.00 target price on Zscaler in a research report on Wednesday, May 27th. JPMorgan Chase & Co. dropped their price target on shares of Zscaler from $250.00 to $205.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus cut their price target on shares of Zscaler from $180.00 to $175.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Zscaler has an average rating of "Moderate Buy" and an average target price of $213.97.

Zscaler Trading Up 8.6%

The company has a 50 day simple moving average of $143.62 and a 200 day simple moving average of $161.44. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The company has a market capitalization of $24.92 billion, a PE ratio of -321.86, a price-to-earnings-growth ratio of 79.81 and a beta of 0.96.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business's revenue was up 25.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Analysts anticipate that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Insider Transactions at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider directly owned 69,366 shares in the company, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 15,766 shares of company stock valued at $1,978,587 in the last 90 days. 17.20% of the stock is owned by company insiders.

Institutional Trading of Zscaler

Several large investors have recently bought and sold shares of ZS. Binnacle Investments Inc purchased a new position in Zscaler in the 3rd quarter worth approximately $25,000. AlphaCentric Advisors LLC acquired a new stake in shares of Zscaler in the fourth quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler during the fourth quarter worth approximately $30,000. Mcguire Capital Advisors Inc. purchased a new position in Zscaler during the fourth quarter worth approximately $32,000. Finally, Western Wealth Management LLC purchased a new position in Zscaler during the first quarter worth approximately $33,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.

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