Guggenheim Reiterates Buy Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by research analysts at Guggenheim in a note issued to investors on Monday,Benzinga reports. They presently have a $214.00 target price on the stock. Guggenheim’s target price suggests a potential upside of 17.75% from the company’s current price.

A number of other research analysts have also commented on the company. Barclays cut their target price on Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Wells Fargo & Company lifted their price target on shares of Zscaler from $180.00 to $210.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. B. Riley Financial lowered 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. Evercore set a $155.00 price objective on shares of Zscaler and gave the company an “in-line” rating in a research note on Wednesday, May 27th. Finally, Piper Sandler reduced their price objective on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus price target of $215.36.

Zscaler Stock Down 0.0%

NASDAQ ZS opened at $181.74 on Monday. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The stock has a market cap of $29.39 billion, a PE ratio of -378.62, a PEG ratio of 106.97 and a beta of 0.94. The firm has a 50-day simple moving average of $151.10 and a 200 day simple moving average of $150.19. 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 issued its quarterly 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 firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company’s quarterly revenue was up 25.4% compared to the same quarter last year. During the same period in the previous year, the company posted $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, research analysts forecast that Zscaler will post 0.13 EPS for the current year.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 16,269 shares of company stock valued at $2,052,589. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Binnacle Investments Inc bought a new position in Zscaler in the 3rd quarter valued at $25,000. AlphaCentric Advisors LLC acquired a new position in Zscaler in the fourth quarter worth $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zscaler during the fourth quarter worth $30,000. POM Investment Strategies LLC grew its holdings in shares of Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after purchasing an additional 105 shares during the last quarter. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler in the fourth quarter valued at $32,000. Institutional investors own 46.45% of the company’s stock.

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.