Zscaler, Inc. (NASDAQ:ZS) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of Zscaler, Inc. (NASDAQ:ZS) have earned a consensus rating of “Moderate Buy” from the forty brokerages that are covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, six have given a hold recommendation and thirty-three have issued a buy recommendation on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $216.0263.

A number of analysts have recently issued reports on ZS shares. Canaccord Genuity Group dropped their price target on shares of Zscaler from $275.00 to $210.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. B. Riley Financial dropped their price target on shares of Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $179.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Truist Financial set a $210.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Finally, Rosenblatt Securities dropped their price target on shares of Zscaler from $223.00 to $200.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th.

Insider Activity

In other news, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were 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 of the company’s stock, valued at $11,335,550.10. This trade represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Kevin Rubin sold 1,682 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares in the company, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors have recently made changes to their positions in the business. Binnacle Investments Inc bought a new position in shares of Zscaler in the 3rd quarter worth approximately $25,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler in the 4th quarter worth approximately $29,000. Picton Mahoney Asset Management bought a new position in shares of Zscaler in the 3rd quarter worth approximately $30,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the 4th quarter worth approximately $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the 4th quarter worth approximately $32,000. Institutional investors own 46.45% of the company’s stock.

Zscaler Stock Performance

Shares of ZS stock opened at $129.25 on Tuesday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company’s 50-day moving average is $143.37 and its 200 day moving average is $181.49. The company has a market capitalization of $20.90 billion, a price-to-earnings ratio of -269.27 and a beta of 0.97. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $835.14 million. During the same period in the prior year, the firm posted $0.84 EPS. Zscaler’s revenue for the quarter was up 25.4% on a year-over-year basis. 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 expect that Zscaler will post -0.03 EPS for the current fiscal year.

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.