Wedbush Reaffirms Outperform Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reiterated by stock analysts at Wedbush in a report released on Monday, Benzinga reports. They currently have a $215.00 price objective on the stock. Wedbush’s price objective indicates a potential upside of 8.07% from the company’s current price.

A number of other research firms also recently commented on ZS. Stifel Nicolaus lifted their price objective on shares of Zscaler from $175.00 to $200.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. lifted their target price on Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 26th. Weiss Ratings raised Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, September 24th. Sanford C. Bernstein raised their price objective on shares of Zscaler from $224.00 to $298.00 and gave the company an “outperform” rating in a research report on Thursday, September 17th. Finally, Roth Capital reissued a “neutral” rating and set a $170.00 price objective on shares of Zscaler in a report on Saturday, September 5th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $219.78.

Zscaler Stock Performance

Shares of ZS stock traded up $0.17 during mid-day trading on Monday, hitting $198.95. The stock had a trading volume of 479,358 shares, compared to its average volume of 3,365,352. 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 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The company’s 50-day simple moving average is $178.55 and its 200-day simple moving average is $154.80. The firm has a market cap of $32.44 billion, a PE ratio of -510.45, a PEG ratio of 20.78 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.Zscaler’s revenue was up 24.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $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. Sell-side analysts anticipate that Zscaler will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 5,394 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the sale, the insider owned 61,525 shares in the company, valued at approximately $12,305,000. This trade represents a 8.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 5,578 shares of Zscaler stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,075,215.28. Following the sale, the insider directly owned 43,553 shares in the company, valued at $8,395,276.28. The trade was a 11.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 29,175 shares of company stock valued at $5,628,465. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Zscaler during the 2nd quarter valued at about $1,396,028,000. First Trust Advisors LP lifted its stake in Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares during the period. Geode Capital Management LLC lifted its stake in Zscaler by 5.0% during the fourth quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company’s stock worth $464,783,000 after purchasing an additional 98,140 shares during the period. Pictet Asset Management Holding SA boosted its holdings in Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after purchasing an additional 661,413 shares in the last quarter. Finally, Amundi grew its stake in shares of Zscaler by 12.8% in the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after purchasing an additional 129,563 shares during the period. 46.45% of the stock is owned by institutional investors.

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.