Canaccord Genuity Group Reiterates Buy Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating restated by equities researchers at Canaccord Genuity Group in a report issued on Thursday,Benzinga reports. They presently have a $210.00 price target on the stock. Canaccord Genuity Group’s price target would indicate a potential upside of 69.06% from the stock’s current price.

Several other research analysts have also issued reports on ZS. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Wedbush reaffirmed an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a research note on Wednesday. HC Wainwright raised shares of Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. Piper Sandler reduced their target price on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 27th. Finally, Stifel Nicolaus reduced their target price on shares of Zscaler from $180.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $214.33.

Zscaler Price Performance

NASDAQ:ZS traded down $0.51 during mid-day trading on Thursday, reaching $124.22. 1,764,566 shares of the company were exchanged, compared to its average volume of 3,583,681. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a fifty day moving average of $142.97 and a 200 day moving average of $179.23. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $20.09 billion, a PE ratio of -259.61, a PEG ratio of 78.68 and a beta of 0.97.

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 the consensus estimate of $1.01 by $0.07. The company 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 EPS. 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 anticipate that Zscaler will post 0.11 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the sale, the executive vice president directly owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 over the last ninety days. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several hedge funds have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC lifted its stake in Zscaler by 19.9% in the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after acquiring an additional 239 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new stake in Zscaler in the 2nd quarter valued at about $252,000. Finally, Jump Financial LLC acquired a new stake in Zscaler in the 2nd quarter valued at about $3,019,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Analysts from Wedbush, RBC, Guggenheim, Rosenblatt and Needham reiterated bullish ratings and raised price targets, signaling Wall Street still sees substantial upside from current levels.
• Positive Sentiment: At Zenith Live 2026, Zscaler unveiled new AI-security products, including its ZAgent Framework, AI Broker, and Endpoint AI Security, and expanded its zero-trust platform to protect agentic AI, unmanaged devices, B2B partners and multi-cloud workloads.
• Positive Sentiment: The company also announced partnerships and ecosystem expansion with Saviynt and Oasis Security, reinforcing its positioning in identity-centric zero trust and AI security.
• Positive Sentiment: Zscaler research and management commentary continue to support the long-term AI security thesis, arguing that the rise of autonomous AI agents creates a large new market for cybersecurity protection.
• Neutral Sentiment: Media coverage around the annual event highlighted AI opportunities and generally positive product momentum, but this was largely reiteration of the company’s existing strategy rather than a near-term financial catalyst.
• Negative Sentiment: Bearish articles said Zscaler is trading near a 52-week low and suggested FY27 guidance implies slower growth, which is weighing on sentiment despite the long-term AI narrative.
• Negative Sentiment: Law firms announced securities-law investigations and investor alerts tied to recent stock declines, adding legal overhang and keeping pressure on the shares.
• Negative Sentiment: Several market recaps pointed to broad weakness in software/growth stocks and noted Zscaler’s sharp year-to-date pullback, which suggests investors are still de-risking high-multiple names.

Zscaler Company Profile

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.