Zscaler (NASDAQ:ZS) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Zscaler (NASDAQ:ZS) had its price target increased by stock analysts at Morgan Stanley from $320.00 to $335.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s price target points to a potential upside of 7.90% from the stock’s previous close.

Several other equities analysts have also issued reports on ZS. JMP Securities restated a “market outperform” rating and issued a $355.00 target price on shares of Zscaler in a report on Wednesday, September 3rd. BMO Capital Markets increased their price target on Zscaler from $295.00 to $315.00 and gave the stock an “outperform” rating in a report on Wednesday, September 3rd. JPMorgan Chase & Co. boosted their target price on shares of Zscaler from $348.00 to $351.00 and gave the company an “overweight” rating in a research report on Wednesday, September 3rd. Canaccord Genuity Group increased their target price on shares of Zscaler from $320.00 to $340.00 and gave the stock a “buy” rating in a research note on Thursday, September 4th. Finally, UBS Group reduced their price target on shares of Zscaler from $365.00 to $350.00 and set a “buy” rating for the company in a report on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $312.39.

Zscaler Price Performance

NASDAQ ZS traded down $6.62 during midday trading on Thursday, hitting $310.46. The company had a trading volume of 365,899 shares, compared to its average volume of 1,973,339. The firm has a 50-day moving average price of $304.02 and a 200-day moving average price of $287.21. The company has a market capitalization of $49.15 billion, a PE ratio of -1,150.37 and a beta of 1.06. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95. Zscaler has a twelve month low of $164.78 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS) last released 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. The business had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.Zscaler’s revenue was up 21.3% compared to the same quarter last year. During the same period last year, the firm posted $0.88 earnings per share. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Raj Judge sold 4,524 shares of the firm’s stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $1,269,886.80. Following the completion of the sale, the executive vice president directly owned 73,832 shares in the company, valued at $20,724,642.40. This trade represents a 5.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Robert Schlossman sold 3,200 shares of the company’s stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $325.00, for a total transaction of $1,040,000.00. Following the transaction, the insider owned 80,086 shares in the company, valued at $26,027,950. The trade was a 3.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 43,084 shares of company stock worth $12,446,825. 18.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of the stock. Bessemer Group Inc. increased its holdings in Zscaler by 3.2% during the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock worth $306,000 after purchasing an additional 32 shares during the period. Cox Capital Mgt LLC grew its position in shares of Zscaler by 0.6% during the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock worth $1,671,000 after buying an additional 33 shares in the last quarter. Brookstone Capital Management increased its stake in shares of Zscaler by 3.7% during the third quarter. Brookstone Capital Management now owns 936 shares of the company’s stock valued at $280,000 after buying an additional 33 shares during the period. Wedbush Securities Inc. raised its holdings in shares of Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, 180 Wealth Advisors LLC lifted its stake in Zscaler by 0.5% in the third quarter. 180 Wealth Advisors LLC now owns 7,897 shares of the company’s stock worth $2,366,000 after acquiring an additional 36 shares during the period. 46.45% of the stock is owned by hedge funds and other institutional investors.

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.