Zscaler, Inc. (NASDAQ:ZS) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

Zscaler, Inc. (NASDAQ:ZS) has been given a consensus recommendation of “Moderate Buy” by the forty-three analysts that are presently covering the company, Marketbeat.com reports. One analyst has rated the stock with a sell rating, seven have issued a hold rating and thirty-five have given a buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $239.41.

ZS has been the subject of a number of research reports. Wedbush raised their target price on Zscaler from $215.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday. Needham & Company LLC increased their price objective on shares of Zscaler from $215.00 to $255.00 and gave the stock a “buy” rating in a report on Wednesday. Rosenblatt Securities set a $250.00 price objective on shares of Zscaler in a report on Wednesday. Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a research report on Friday, October 2nd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Zscaler in a research note on Friday, September 4th.

Zscaler Stock Up 7.8%

Shares of ZS opened at $233.73 on Monday. The company has a market capitalization of $38.11 billion, a P/E ratio of -599.31, a PEG ratio of 20.84 and a beta of 0.94. Zscaler has a one year low of $114.63 and a one year high of $336.99. The business’s 50 day simple moving average is $186.15 and its 200-day simple moving average is $157.22. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. The firm had revenue of $898.19 million during the quarter, compared to analysts’ expectations of $876.96 million. During the same period last year, the firm posted $0.89 EPS. The business’s revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, sell-side analysts predict that Zscaler will post 0.69 EPS for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, insider Adam Geller sold 5,578 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,075,215.28. Following the transaction, the insider directly owned 43,553 shares in the company, valued at approximately $8,395,276.28. This trade represents a 11.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,852 shares of Zscaler stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $549,751.52. Following the completion of the sale, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at $65,574,253.36. This trade represents a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 29,053 shares of company stock worth $5,610,165. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently added to or reduced their stakes in ZS. Burkett Financial Services LLC bought a new position in shares of Zscaler during the 3rd quarter valued at about $27,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the 4th quarter worth approximately $30,000. Elevation Wealth Partners LLC increased its stake in Zscaler by 84.3% during the 3rd quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock worth $31,000 after purchasing an additional 70 shares in the last quarter. Reflection Asset Management acquired a new stake in Zscaler during the 4th quarter worth approximately $40,000. Finally, POM Investment Strategies LLC raised its holdings in Zscaler by 92.9% during the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after buying an additional 105 shares during the period. Institutional investors own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.