Zscaler (NASDAQ:ZS) Given Neutral Rating at BTIG Research

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

Other equities analysts have also recently issued research reports about the stock. KeyCorp lifted their target price on shares of Zscaler from $185.00 to $210.00 and gave the stock an “overweight” rating in a research report on Friday, August 21st. Weiss Ratings upgraded shares of Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, August 27th. Zacks Research raised Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. Wedbush reiterated an “outperform” rating and issued a $220.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Finally, Barclays boosted their target price on Zscaler from $170.00 to $192.00 and gave the company an “overweight” rating in a research note on Tuesday, August 25th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $214.90.

Zscaler Price Performance

ZS opened at $177.80 on Friday. The stock has a 50-day moving average price of $160.51 and a 200-day moving average price of $150.39. 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 stock has a market capitalization of $28.75 billion, a P/E ratio of -370.41, a PEG ratio of 101.67 and a beta of 0.95.

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

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of Zscaler stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the sale, the chief financial officer owned 41,901 shares in the company, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock worth $2,139,799 in the last ninety days. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the stock. Amundi raised its stake in Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after buying an additional 129,563 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Zscaler during the 2nd quarter valued at approximately $3,588,000. California State Teachers Retirement System grew its holdings in shares of Zscaler by 13,837.9% during the 2nd quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock worth $2,736,727,000 after acquiring an additional 19,249,679 shares during the period. POM Investment Strategies LLC grew its holdings in shares of Zscaler by 92.9% during the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after acquiring an additional 105 shares during the period. Finally, HB Wealth Management LLC raised its position in shares of Zscaler by 16.2% in the 2nd quarter. HB Wealth Management LLC now owns 3,182 shares of the company’s stock worth $449,000 after acquiring an additional 443 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Headlines Impacting 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.