BTIG Research Reiterates Neutral Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “neutral” rating reiterated by equities researchers at BTIG Research in a research report issued to clients and investors on Friday, Benzinga reports.

Several other equities analysts have also issued reports on the company. Wedbush reaffirmed an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Morgan Stanley dropped their price target on Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a report on Wednesday, May 27th. UBS Group cut their price objective on Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. B. Riley Financial decreased their target price on Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Finally, FBN Securities reiterated an “outperform” rating and set a $175.00 target price on shares of Zscaler in a research note on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $214.90.

Zscaler Stock Up 2.9%

Zscaler stock opened at $177.80 on Friday. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The firm’s 50-day simple moving average is $160.51 and its 200 day simple moving average is $150.39. The stock has a market cap of $28.75 billion, a PE ratio of -370.41, a price-to-earnings-growth ratio of 101.67 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $898.18 million during the quarter, compared to analyst estimates of $876.96 million. During the same quarter last year, the business posted $0.89 EPS. The company’s revenue for the quarter was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Research analysts predict that Zscaler will post 0.13 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were 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 owned 343,038 shares in the company, valued at $43,370,294.34. This trade represents a 0.83% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 503 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total transaction of $87,210.14. Following the sale, the chief financial officer owned 40,895 shares in the company, valued at $7,090,375.10. The trade was a 1.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 16,772 shares of company stock valued at $2,139,799 in the last three months. 17.20% of the stock is owned by company insiders.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently bought and sold shares of ZS. Kentucky Retirement Systems Insurance Trust Fund grew its position in shares of Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after purchasing an additional 36 shares in the last quarter. Parallel Advisors LLC boosted its stake in Zscaler by 10.9% during the third quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock valued at $119,000 after buying an additional 39 shares during the period. Smartleaf Asset Management LLC boosted its stake in Zscaler by 7.5% during the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after buying an additional 45 shares during the period. Larson Financial Group LLC grew its position in Zscaler by 2.6% during the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock worth $611,000 after buying an additional 52 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its position in Zscaler by 6.1% during the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock worth $292,000 after buying an additional 56 shares in the last quarter. Institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

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.