Zscaler (NASDAQ:ZS) Raised to “Hold” at Zacks Research

Zacks Research upgraded shares of Zscaler (NASDAQ:ZS) from a strong sell rating to a hold rating in a research report released on Thursday,Zacks.com reports.

A number of other brokerages also recently weighed in on ZS. Needham & Company LLC restated a “buy” rating and set a $350.00 target price on shares of Zscaler in a report on Wednesday, September 3rd. Scotiabank lowered their target price on shares of Zscaler from $360.00 to $334.00 and set a “sector outperform” rating on the stock in a report on Wednesday, September 3rd. Cantor Fitzgerald restated an “overweight” rating and set a $340.00 target price on shares of Zscaler in a report on Wednesday, September 3rd. Wedbush restated an “outperform” rating and set a $330.00 target price on shares of Zscaler in a report on Wednesday, September 3rd. Finally, Wall Street Zen upgraded shares of Zscaler from a “hold” rating to a “buy” rating in a report on Sunday, September 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $307.43.

Zscaler Price Performance

Shares of ZS opened at $305.41 on Thursday. The company has a market cap of $48.35 billion, a price-to-earnings ratio of -1,131.15 and a beta of 1.06. Zscaler has a 1-year low of $164.78 and a 1-year high of $318.46. The company’s fifty day simple moving average is $282.18 and its 200 day simple moving average is $263.56. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95.

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

Insider Activity at Zscaler

In related news, EVP Raj Judge sold 4,524 shares of the company’s stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the transaction, the executive vice president directly owned 73,832 shares in the company, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Adam Geller sold 11,193 shares of the company’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 $3,141,875.10. Following the completion of the transaction, the insider owned 53,942 shares in the company, valued at $15,141,519.40. This trade represents a 17.18% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 39,884 shares of company stock valued at $11,406,825 in the last ninety days. Company insiders own 18.10% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock valued at $3,363,909,000 after acquiring an additional 824,626 shares in the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company’s stock valued at $604,831,000 after acquiring an additional 578,883 shares in the last quarter. T. Rowe Price Investment Management Inc. acquired a new position in shares of Zscaler in the first quarter valued at about $516,622,000. Geode Capital Management LLC grew its stake in shares of Zscaler by 6.0% in the second quarter. Geode Capital Management LLC now owns 1,866,329 shares of the company’s stock valued at $584,160,000 after acquiring an additional 105,318 shares in the last quarter. Finally, AQR Capital Management LLC grew its stake in shares of Zscaler by 0.7% in the second quarter. AQR Capital Management LLC now owns 1,199,815 shares of the company’s stock valued at $371,823,000 after acquiring an additional 7,885 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.