Zscaler (NASDAQ:ZS) Trading Up 2.7% - Still a Buy?

Key Points

• Zscaler shares rose 2.7% in Friday trading, with volume running above average as investors reacted to ongoing analyst support and company news.
• Several Wall Street firms remain bullish: Stephens reiterated an Overweight rating with a $200 target, while Canaccord Genuity restated Buy with a $210 target. Overall, the stock still carries a Moderate Buy consensus from analysts.
• Zscaler is also leaning into AI and Zero Trust SASE security, unveiling expanded tools for autonomous AI agents, endpoints, partners, and Kubernetes environments. That positioning could help its growth story, even as concerns persist about slower guidance and a shareholder investigation.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report)'s share price shot up 2.7% during mid-day trading on Friday . The stock traded as high as $130.00 and last traded at $129.52. 4,749,177 shares were traded during trading, an increase of 31% from the average session volume of 3,613,499 shares. The stock had previously closed at $126.11.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Stephens reaffirmed its Overweight rating on Zscaler and set a $200 price target, implying substantial upside from current levels. Stephens reiterates Overweight on Zscaler
• Positive Sentiment: Canaccord Genuity also reiterated a Buy rating with a $210 price target, reinforcing the view that analysts still see recovery potential in Zscaler’s stock. Canaccord reiterates Buy on Zscaler
• Positive Sentiment: Zscaler announced expanded Zero Trust SASE and AI-focused security capabilities, including new tools aimed at protecting autonomous AI agents, endpoints, B2B partners, and Kubernetes environments. That keeps the company positioned as an AI-security beneficiary. Zscaler bets on AI agent security
• Positive Sentiment: The company is also emphasizing its role in securing distributed AI environments, which could help support future bookings and growth narrative. Zscaler expands Zero Trust SASE solution
• Neutral Sentiment: Zscaler has been one of the most searched names on Zacks, reflecting elevated trader interest rather than a clearly new fundamental catalyst. Zscaler attracting investor attention
• Neutral Sentiment: Investor focus also remains on the company’s recent presentation and management commentary around AI opportunities and partner-led growth, but these items are more informational than market-moving on their own. Zscaler presents at Zenith-live-2026
• Negative Sentiment: Sentiment is still pressured by Zscaler’s weak share-price performance and concerns that its forward guidance implies slower growth, which has kept the stock near its lows. Zscaler trades near 52-week low
• Negative Sentiment: A shareholder investigation announced by the Schall Law Firm is another overhang, as it raises uncertainty around possible securities-law claims. Zscaler fraud investigation

Analyst Ratings Changes

ZS has been the topic of several research analyst reports. Scotiabank dropped their price objective on shares of Zscaler from $190.00 to $175.00 and set a "sector outperform" rating on the stock in a research report on Wednesday, May 27th. Stifel Nicolaus lowered their price target on shares of Zscaler from $180.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. Guggenheim restated a "buy" rating and set a $214.00 price objective on shares of Zscaler in a research report on Wednesday. KeyCorp boosted their price objective on Zscaler from $160.00 to $190.00 and gave the stock an "overweight" rating in a report on Monday, May 18th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Zscaler in a research report on Tuesday. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Zscaler currently has an average rating of "Moderate Buy" and a consensus target price of $214.33.

Zscaler Stock Up 2.7%

The firm's 50 day simple moving average is $142.69 and its two-hundred day simple moving average is $178.18. The firm has a market cap of $20.94 billion, a price-to-earnings ratio of -269.83, a PEG ratio of 77.99 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business's revenue for the quarter was up 25.4% on a year-over-year basis. During the same period last 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. On average, equities analysts forecast that Zscaler, Inc. will post 0.11 EPS for the current year.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 2,263 shares of the company's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider directly owned 46,949 shares in the company, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 12,130 shares of company stock worth $1,892,487. Corporate insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Large investors have recently made changes to their positions in the company. Westpac Banking Corp lifted its stake in shares of Zscaler by 919.0% in the third quarter. Westpac Banking Corp now owns 9,986 shares of the company's stock worth $2,992,000 after acquiring an additional 9,006 shares during the period. Korea Investment CORP increased its position in Zscaler by 24.0% during the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company's stock valued at $29,478,000 after purchasing an additional 19,026 shares during the period. Qsemble Capital Management LP raised its holdings in 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 last quarter. Oxbow Advisors LLC acquired a new position in shares of Zscaler in the 4th quarter worth approximately $2,939,000. Finally, Vinva Investment Management Ltd lifted its position in shares of Zscaler by 136.1% in 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. Institutional investors and hedge funds 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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