Zscaler (NASDAQ:ZS) Upgraded at Zacks Research

Zscaler (NASDAQ:ZS) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued on Thursday,Zacks.com reports.

Several other analysts have also recently commented on ZS. Rosenblatt Securities raised their price target on shares of Zscaler from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Wednesday, September 3rd. Canaccord Genuity Group lifted their target price on shares of Zscaler from $320.00 to $340.00 and gave the company a “buy” rating in a research note on Thursday, September 4th. BTIG Research reiterated a “buy” rating on shares of Zscaler in a research note on Thursday, July 10th. Scotiabank reduced their target price 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, Guggenheim reiterated a “neutral” rating on shares of Zscaler in a research note on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and an average price target of $307.43.

Zscaler Stock Performance

ZS stock opened at $305.41 on Thursday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. The stock has a market cap of $48.35 billion, a P/E ratio of -1,131.15 and a beta of 1.06. The firm has a 50 day simple moving average of $282.18 and a 200 day simple moving average of $263.56. Zscaler has a 52 week low of $164.78 and a 52 week high of $318.46.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.80 by $0.09. The business had revenue of $719.23 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 21.3% compared to the same quarter last year. During the same period last year, the company posted $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. Research analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the business’s stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $804,205.50. Following the completion of the sale, the chief executive officer directly owned 350,700 shares in the company, valued at approximately $98,441,490. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Adam Geller sold 10,464 shares of the business’s stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $284.25, for a total transaction of $2,974,392.00. Following the completion of the sale, the insider owned 43,478 shares of the company’s stock, valued at $12,358,621.50. The trade was a 19.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 39,884 shares of company stock valued at $11,406,825 over the last three months. Corporate insiders own 18.10% of the company’s stock.

Institutional Trading of Zscaler

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted 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 worth $3,363,909,000 after buying an additional 824,626 shares during the last quarter. Goldman Sachs Group Inc. increased its position in Zscaler by 23.4% during the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company’s stock worth $604,831,000 after acquiring an additional 578,883 shares during the period. T. Rowe Price Investment Management Inc. bought a new position in Zscaler during the first quarter worth $516,622,000. Geode Capital Management LLC increased its position in Zscaler by 6.0% during the second quarter. Geode Capital Management LLC now owns 1,866,329 shares of the company’s stock worth $584,160,000 after acquiring an additional 105,318 shares during the period. Finally, AQR Capital Management LLC increased its position in Zscaler by 0.7% during the second quarter. AQR Capital Management LLC now owns 1,199,815 shares of the company’s stock worth $371,823,000 after acquiring an additional 7,885 shares during the period. 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.