Zscaler’s (ZS) “Buy” Rating Reaffirmed at Needham & Company LLC

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating restated by Needham & Company LLC in a research report issued to clients and investors on Wednesday,Benzinga reports. They currently have a $180.00 target price on the stock. Needham & Company LLC’s price target would suggest a potential downside of 2.49% from the company’s current price.

ZS has been the topic of a number of other research reports. TD Cowen restated a “buy” rating on shares of Zscaler in a research report on Wednesday. Sanford C. Bernstein lowered their price objective on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research report on Wednesday. Citizens Jmp lowered their price objective on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research report on Friday, May 1st. B. Riley Financial upgraded shares of Zscaler from a “neutral” rating to a “buy” rating and lowered their price objective for the company from $275.00 to $225.00 in a research report on Monday, May 18th. Finally, UBS Group restated a “buy” rating on shares of Zscaler in a research report on Wednesday, May 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $245.80.

Zscaler Trading Up 1.2%

Shares of NASDAQ ZS opened at $184.60 on Wednesday. The firm’s 50 day moving average price is $145.75 and its 200-day moving average price is $192.65. The company has a market cap of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm’s revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.84 earnings per share. 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, equities research analysts expect that Zscaler will post -0.03 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the company’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 $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares of the company’s stock, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director James A. Beer sold 177 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares of the company’s stock, valued at approximately $673,075.52. This trade represents a 3.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 12,130 shares of company stock valued at $1,892,487 in the last quarter. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently bought and sold shares of ZS. Binnacle Investments Inc bought a new position in Zscaler during the third quarter valued at $25,000. Root Financial Partners LLC bought a new position in Zscaler during the third quarter valued at $26,000. Picton Mahoney Asset Management bought a new position in Zscaler during the third quarter valued at $30,000. AlphaCentric Advisors LLC bought a new position in Zscaler during the fourth quarter valued at $29,000. Finally, University of Texas Texas AM Investment Management Co. bought a new position in Zscaler during the fourth quarter valued at $30,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

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.