Zscaler (NASDAQ:ZS) Upgraded by Zacks Research to Hold Rating

Key Points

• Zscaler has been upgraded by Zacks Research from a "strong sell" to a "hold" rating, reflecting a positive shift in investor outlook.
• Currently, Zscaler's stock holds a consensus rating of "Moderate Buy" with a price target averaging around $307.43.
• The company reported $719.23 million in revenue for the last quarter, exceeding analysts' expectations and showing a year-over-year increase of 21.3%.

Zscaler (NASDAQ:ZS - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Thursday,Zacks.com reports.

Other equities analysts have also recently issued reports about the stock. Needham & Company LLC reaffirmed a "buy" rating and set a $350.00 price target on shares of Zscaler in a research note on Wednesday, September 3rd. Mizuho lifted their price target on shares of Zscaler from $275.00 to $290.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 4th. BMO Capital Markets lifted their price target on shares of Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 3rd. Scotiabank dropped their price target on shares of Zscaler from $360.00 to $334.00 and set a "sector outperform" rating for the company in a research note on Wednesday, September 3rd. Finally, Rosenblatt Securities boosted their price objective on shares of Zscaler from $315.00 to $330.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus price target of $307.43.

Zscaler Stock Performance

Shares of NASDAQ:ZS opened at $305.41 on Thursday. Zscaler has a 52 week low of $164.78 and a 52 week high of $318.46. The stock has a market capitalization of $48.35 billion, a P/E ratio of -1,131.15 and a beta of 1.06. The firm has a fifty day simple moving average of $282.18 and a two-hundred day simple moving average of $263.56. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The firm had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. During the same period in the previous year, the company earned $0.88 EPS. The firm's revenue for the quarter was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, analysts expect that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Zscaler

In other news, insider Robert Schlossman sold 7,006 shares of the business's stock in a transaction dated Thursday, October 2nd. The shares were sold at an average price of $305.57, for a total value of $2,140,823.42. Following the completion of the sale, the insider owned 76,132 shares in the company, valued at approximately $23,263,655.24. The trade was a 8.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Raj Judge sold 4,524 shares of the business's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $1,269,886.80. Following the completion of the sale, the executive vice president owned 73,832 shares of the company's stock, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 39,884 shares of company stock worth $11,406,825. 18.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zscaler

Large investors have recently modified their holdings of the business. Parisi Gray Wealth Management bought a new stake in shares of Zscaler in the 2nd quarter valued at about $801,000. GAMMA Investing LLC raised its stake in shares of Zscaler by 43.1% during the 1st quarter. GAMMA Investing LLC now owns 641 shares of the company's stock worth $127,000 after acquiring an additional 193 shares in the last quarter. Howe & Rusling Inc. raised its stake in shares of Zscaler by 17.1% during the 1st quarter. Howe & Rusling Inc. now owns 24,672 shares of the company's stock worth $4,895,000 after acquiring an additional 3,611 shares in the last quarter. Focus Partners Wealth raised its stake in shares of Zscaler by 2.5% during the 1st quarter. Focus Partners Wealth now owns 62,083 shares of the company's stock worth $12,319,000 after acquiring an additional 1,517 shares in the last quarter. Finally, Allworth Financial LP raised its stake in shares of Zscaler by 47.4% during the 1st quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after acquiring an additional 322 shares in the last quarter. Institutional investors own 46.45% of the company's stock.

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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