Zscaler (NASDAQ:ZS) Stock Price Up 9.8% - Time to Buy?

Key Points

• Zscaler shares jumped 9.8% on Monday, trading as high as $153.54 after closing at $139.73, though volume was below average.
• Analysts remain constructive overall, with 33 Buy ratings and a consensus price target of $216.03, even as several firms recently cut their targets.
• The company posted a better-than-expected quarter, with EPS of $1.08 and revenue of $850.48 million, while revenue rose 25.4% year over year and Zscaler issued full-year guidance for FY 2026.

Shares of Zscaler, Inc. (NASDAQ:ZS - Get Free Report) rose 9.8% on Monday . The company traded as high as $153.54 and last traded at $153.4850. Approximately 2,287,115 shares traded hands during trading, a decline of 33% from the average daily volume of 3,397,417 shares. The stock had previously closed at $139.73.

Analysts Set New Price Targets

ZS has been the topic of a number of analyst reports. Citigroup reiterated a "market outperform" rating on shares of Zscaler in a research report on Wednesday, May 27th. Cantor Fitzgerald cut their price objective on shares of Zscaler from $300.00 to $225.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 27th. Citizens Jmp reduced their target price on Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research note on Friday, May 1st. Robert W. Baird reduced their target price on Zscaler from $265.00 to $230.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Finally, Wedbush reduced their target price on Zscaler from $300.00 to $220.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Thirty-three 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 company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $216.03.

Zscaler Stock Performance

The stock has a market cap of $24.92 billion, a PE ratio of -320.35 and a beta of 0.97. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a 50 day moving average price of $144.36 and a 200 day moving average price of $188.63.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same quarter last year, the firm posted $0.84 earnings per share. The business's revenue for the quarter was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, research analysts forecast that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insider Activity at Zscaler

In related news, EVP Raj Judge sold 2,488 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the sale, the executive vice president owned 67,906 shares of the company's stock, valued at $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director James A. Beer sold 177 shares of the firm's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director directly owned 4,384 shares in the company, valued at approximately $673,075.52. The trade was a 3.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,130 shares of company stock valued at $1,892,487 over the last 90 days. Company insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in the stock. Westpac Banking Corp grew its holdings in Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company's stock valued at $2,992,000 after buying an additional 9,006 shares in the last quarter. Korea Investment CORP grew its holdings in shares of Zscaler by 24.0% during the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company's stock worth $29,478,000 after purchasing an additional 19,026 shares during the period. Qsemble Capital Management LP grew its holdings in shares of Zscaler by 105.5% during the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock worth $3,548,000 after purchasing an additional 8,099 shares during the period. Vinva Investment Management Ltd grew its holdings in shares of Zscaler by 136.1% during the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company's stock worth $3,400,000 after purchasing an additional 6,541 shares during the period. Finally, Oxbow Advisors LLC purchased a new position in shares of Zscaler during the 4th quarter worth $2,939,000. Institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

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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