Zscaler's (ZS) "Buy" Rating Reiterated at Guggenheim

Key Points

• Guggenheim reaffirmed its “Buy” rating on Zscaler and set a $214 price target, implying approximately 17.75% upside from the prior close.
• Analyst sentiment remains broadly positive: 34 analysts rate the stock a Buy, six rate it Hold, and one rates it Sell, producing a consensus “Moderate Buy” rating and $215.36 target.
• Zscaler beat quarterly expectations with $1.08 in earnings per share versus $1.01 expected and revenue of $850.48 million, up 25.4% year over year; however, the company reported a negative net margin.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "buy" rating reaffirmed by Guggenheim in a note issued to investors on Monday,Benzinga reports. They presently have a $214.00 target price on the stock. Guggenheim's price target points to a potential upside of 17.75% from the company's previous close.

ZS has been the subject of several other research reports. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Zscaler in a research note on Tuesday, June 9th. Morgan Stanley cut their target price on Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a report on Wednesday, May 27th. Berenberg Bank set a $200.00 price target on Zscaler in a research report on Thursday, May 28th. Canaccord Genuity Group reissued a "buy" rating and set a $210.00 price objective on shares of Zscaler in a report on Thursday, June 11th. Finally, Robert W. Baird cut their price objective on Zscaler from $265.00 to $230.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Thirty-four investment 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.com, Zscaler has a consensus rating of "Moderate Buy" and a consensus price target of $215.36.

Zscaler Trading Down 0.0%

Shares of NASDAQ ZS opened at $181.74 on Monday. The business has a 50 day simple moving average of $151.10 and a 200 day simple moving average of $150.19. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The stock has a market cap of $29.39 billion, a price-to-earnings ratio of -378.62, a PEG ratio of 106.97 and a beta of 0.94. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company's revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter 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, research analysts predict that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Kevin Rubin sold 3,000 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $124.22, for a total value of $372,660.00. Following the sale, the chief financial officer directly owned 41,901 shares of the company's stock, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 16,269 shares of company stock worth $2,052,589. Insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZS. Binnacle Investments Inc acquired a new position in shares of Zscaler during the third quarter worth approximately $25,000. AlphaCentric Advisors LLC acquired a new stake in shares of Zscaler in the fourth quarter worth $29,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler during the fourth quarter worth $30,000. POM Investment Strategies LLC increased its position in Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock worth $31,000 after acquiring an additional 105 shares during the period. Finally, Mcguire Capital Advisors Inc. bought a new position in Zscaler during the fourth quarter worth $32,000. Institutional investors and hedge funds 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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