Zscaler (NASDAQ:ZS) Stock Price Up 2.6% – Time to Buy?

Zscaler, Inc. (NASDAQ:ZS)’s stock price was up 2.6% during trading on Tuesday . The stock traded as high as $142.05 and last traded at $141.15. 2,588,449 shares traded hands during trading, a decline of 30% from the average session volume of 3,672,294 shares. The stock had previously closed at $137.60.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Needham & Company LLC reiterated a “buy” rating and set a $180.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Oppenheimer reduced their price target on Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research report on Tuesday, March 10th. TD Cowen restated a “buy” rating on shares of Zscaler in a research note on Wednesday, May 27th. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $150.00 price target on shares of Zscaler in a research report on Thursday, June 11th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $213.97.

Zscaler Stock Up 2.6%

The company has a market capitalization of $22.83 billion, a price-to-earnings ratio of -294.06, a price-to-earnings-growth ratio of 82.69 and a beta of 0.97. The firm’s 50 day moving average price is $141.65 and its two-hundred day moving average price is $167.66. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the prior year, the firm earned $0.84 EPS. Zscaler’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts anticipate that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider directly owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 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 that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider owned 69,366 shares of the company’s stock, valued at $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 15,644 shares of company stock worth $1,960,287 over the last ninety days. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors and hedge funds have recently modified their holdings of the stock. Binnacle Investments Inc acquired a new stake in shares of Zscaler during the 3rd quarter worth about $25,000. Picton Mahoney Asset Management acquired a new position in Zscaler in the 3rd quarter valued at about $30,000. AlphaCentric Advisors LLC bought a new position in Zscaler in the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler in the 4th quarter valued at about $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in Zscaler during the fourth quarter worth approximately $32,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.