Wall Street Zen Upgrades Zscaler (NASDAQ:ZS) to “Buy”

Zscaler (NASDAQ:ZS) was upgraded by Wall Street Zen from a “hold” rating to a “buy” rating in a report issued on Sunday.

ZS has been the subject of several other reports. Canaccord Genuity Group increased their price objective on Zscaler from $320.00 to $340.00 and gave the company a “buy” rating in a report on Thursday. B. Riley began coverage on Zscaler in a research report on Tuesday, August 26th. They set a “neutral” rating and a $275.00 target price on the stock. Guggenheim restated a “neutral” rating on shares of Zscaler in a research report on Wednesday, September 3rd. Loop Capital increased their target price on Zscaler from $250.00 to $260.00 and gave the stock a “hold” rating in a research report on Friday, May 30th. Finally, FBN Securities upgraded Zscaler to a “strong-buy” rating in a research report on Friday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Zscaler has a consensus rating of “Moderate Buy” and an average price target of $307.00.

Zscaler Trading Up 2.7%

Shares of NASDAQ ZS opened at $281.60 on Friday. The stock has a fifty day simple moving average of $284.65 and a two-hundred day simple moving average of $252.03. Zscaler has a 1-year low of $153.45 and a 1-year high of $318.46. The firm has a market cap of $43.85 billion, a price-to-earnings ratio of -1,042.96 and a beta of 1.05.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.09. Zscaler had a negative return on equity of 0.49% and a negative net margin of 1.55%.The business had revenue of $719.23 million during the quarter, compared to analyst estimates of $707.15 million. During the same period in the prior year, the company earned $0.88 earnings per share. Zscaler’s revenue was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. Analysts forecast that Zscaler will post -0.1 EPS for the current year.

Insider Buying and Selling

In related news, insider Syam Nair sold 4,064 shares of the stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total value of $1,234,236.80. Following the sale, the insider owned 106,659 shares in the company, valued at approximately $32,392,338.30. This trade represents a 3.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Adam Geller sold 3,662 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the completion of the sale, the insider owned 46,813 shares in the company, valued at $14,358,483.36. This trade represents a 7.26% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 23,305 shares of company stock valued at $7,093,136 in the last ninety days. 18.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ZS. ORG Partners LLC increased its stake in Zscaler by 284.8% in the first quarter. ORG Partners LLC now owns 127 shares of the company’s stock valued at $26,000 after acquiring an additional 94 shares during the last quarter. SVB Wealth LLC bought a new position in Zscaler in the first quarter valued at $26,000. Colonial Trust Co SC bought a new position in Zscaler in the fourth quarter valued at $28,000. Goodman Advisory Group LLC bought a new position in Zscaler in the first quarter valued at $29,000. Finally, N.E.W. Advisory Services LLC bought a new position in Zscaler in the first quarter valued at $29,000. Institutional investors own 46.45% of the company’s stock.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.