Zscaler’s (ZS) “Buy” Rating Reiterated at Rosenblatt Securities

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a research note issued to investors on Wednesday,Benzinga reports. They presently have a $200.00 target price on the stock. Rosenblatt Securities’ target price points to a potential upside of 58.93% from the stock’s current price.

Other equities analysts have also issued reports about the stock. Truist Financial set a $210.00 price objective on shares of Zscaler in a report on Wednesday, May 27th. Scotiabank decreased their price objective on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a research report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft lowered their price target on Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Oppenheimer decreased their price objective on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research note on Tuesday, March 10th. Finally, UBS Group lowered their target price on Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler Stock Down 2.6%

Shares of NASDAQ ZS opened at $125.84 on Wednesday. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm’s 50-day moving average price is $143.22 and its 200-day moving average price is $180.32. The stock has a market capitalization of $20.35 billion, a price-to-earnings ratio of -262.16, a P/E/G ratio of 80.81 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same quarter last year, the business earned $0.84 EPS. The business’s revenue 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. On average, equities research analysts anticipate that Zscaler will post 0.11 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director owned 4,384 shares of the company’s stock, valued at $673,075.52. The trade was a 3.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The stock was 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 $7,278,146.61. This represents a 3.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by company insiders.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the third quarter valued at about $25,000. AlphaCentric Advisors LLC acquired a new stake in shares of Zscaler during the 4th quarter valued at approximately $29,000. Picton Mahoney Asset Management purchased a new stake in Zscaler during the third quarter worth $30,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler in the 4th quarter worth about $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler in the fourth quarter valued at about $32,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler unveiled new AI-security products, including AI Broker and Endpoint AI Security, to protect AI agents, endpoints, and enterprise data as more workflows shift to agentic AI. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Positive Sentiment: The company expanded Project AI-Guardian with partners including AWS, Google Cloud, OpenAI, Databricks, CoreWeave, Equinix, Glean, NTT DATA, and Saviynt, which could strengthen Zscaler’s position as an AI security platform and improve adoption. Zscaler Expands AI-Guardian, Uniting Tech Giants to Secure Enterprise AI at Scale
• Positive Sentiment: Zscaler’s CEO argued that AI will create “billions of agents” that need cybersecurity protection, reinforcing the bull case that ZS can benefit from the rise of autonomous AI workflows. Zscaler CEO: AI Will Create ‘Billions of Agents’ That Need Cybersecurity Protection
• Neutral Sentiment: Zscaler’s new products and partnership announcements highlight strong strategic momentum, but the releases also include forward-looking caveats about customer adoption and execution risk. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Negative Sentiment: Broader market reaction to Anthropic’s new models pressured cybersecurity and software names, including Zscaler, on concern that the competitive AI landscape could shift investor sentiment away from the group. Zscaler, Dynatrace, and Nutanix Shares Are Falling, What You Need To Know
• Negative Sentiment: New class-action deadline reminders and a separate fraud investigation notice add legal overhang for ZS shares. ZS DEADLINE: The Gross Law Firm Reminds Zscaler, Inc. Investors of Upcoming Securities Class Action Deadline

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.