Zscaler (NASDAQ:ZS) Coverage Initiated by Analysts at B. Riley

Key Points

• Zscaler has been upgraded by B. Riley to a "hold" rating, while analysts from Loop Capital and Canaccord Genuity Group also adjusted their target prices, with estimates ranging from $260 to $305.
• The company reported $678.03 million in revenue for its last quarter, surpassing analyst expectations, and its year-over-year revenue growth stands at 22.6%.
• Currently, institutional investors hold 46.45% of Zscaler's stock, with Vanguard Group and Goldman Sachs increasing their stakes in the company during recent quarters.

B. Riley started coverage on shares of Zscaler (NASDAQ:ZS - Get Free Report) in a report released on Monday, Marketbeat Ratings reports. The firm set a "neutral" rating and a $275.00 price target on the stock. B. Riley's target price suggests a potential upside of 2.73% from the company's current price.

Several other analysts have also recently commented on ZS. BNP Paribas upgraded Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price target for the company in a research report on Monday, April 28th. Evercore ISI boosted their price target on Zscaler from $245.00 to $290.00 and gave the stock an "outperform" rating in a research report on Friday, May 30th. Wells Fargo & Company upgraded Zscaler from an "equal weight" rating to an "overweight" rating and boosted their price target for the stock from $260.00 to $385.00 in a research report on Friday, June 13th. Cantor Fitzgerald boosted their price target on Zscaler from $290.00 to $340.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 11th. Finally, JMP Securities upped their target price on Zscaler from $310.00 to $355.00 and gave the company a "market outperform" rating in a report on Tuesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $296.49.

Zscaler Stock Performance

Shares of ZS opened at $267.68 on Monday. Zscaler has a one year low of $153.45 and a one year high of $318.46. The stock has a market capitalization of $41.68 billion, a price-to-earnings ratio of -1,029.54, a PEG ratio of 287.64 and a beta of 1.06. The stock has a 50 day moving average price of $290.87 and a 200 day moving average price of $247.73.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping the consensus estimate of $0.76 by $0.08. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The firm had revenue of $678.03 million during the quarter, compared to analysts' expectations of $667.13 million. During the same period in the previous year, the business earned $0.88 earnings per share. The firm's revenue for the quarter was up 22.6% on a year-over-year basis. Zscaler has set its FY 2025 guidance at 3.180-3.19 EPS. Q4 2025 guidance at EPS. On average, analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other news, Director Andrew William Fraser Brown sold 20,333 shares of the stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $296.72, for a total transaction of $6,033,207.76. Following the completion of the transaction, the director directly owned 27,216 shares in the company, valued at approximately $8,075,531.52. This represents a 42.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 3,662 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the transaction, the insider owned 46,813 shares of the company's stock, valued at approximately $14,358,483.36. This represents a 7.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 168,256 shares of company stock worth $50,618,544. Insiders own 18.10% of the company's stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds have recently modified their holdings of the business. Parcion Private Wealth LLC grew its holdings in shares of Zscaler by 3.3% during the 2nd quarter. Parcion Private Wealth LLC now owns 1,200 shares of the company's stock worth $377,000 after purchasing an additional 38 shares during the period. Secure Asset Management LLC lifted its stake in Zscaler by 1.8% during the 2nd quarter. Secure Asset Management LLC now owns 2,436 shares of the company's stock worth $765,000 after acquiring an additional 43 shares in the last quarter. Tlwm lifted its stake in Zscaler by 1.0% during the 2nd quarter. Tlwm now owns 4,649 shares of the company's stock worth $1,460,000 after acquiring an additional 44 shares in the last quarter. Sepio Capital LP lifted its stake in Zscaler by 0.6% during the 2nd quarter. Sepio Capital LP now owns 8,209 shares of the company's stock worth $2,577,000 after acquiring an additional 45 shares in the last quarter. Finally, Smartleaf Asset Management LLC lifted its stake in Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock worth $204,000 after acquiring an additional 45 shares in the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

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.