Zscaler (NASDAQ:ZS) Price Target Raised to $250.00

Zscaler (NASDAQ:ZS) had its price objective increased by UBS Group from $225.00 to $250.00 in a research note published on Wednesday morning,Benzinga reports. UBS Group currently has a buy rating on the stock.

Several other equities research analysts have also commented on the stock. Guggenheim increased their price objective on shares of Zscaler from $214.00 to $254.00 and gave the company a “buy” rating in a research note on Wednesday. Wells Fargo & Company boosted their target price on Zscaler from $215.00 to $260.00 and gave the stock an “overweight” rating in a research note on Wednesday. Needham & Company LLC upped their target price on Zscaler from $215.00 to $255.00 and gave the company a “buy” rating in a report on Wednesday. Citigroup increased their price target on Zscaler from $205.00 to $245.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, Wolfe Research reiterated an “outperform” rating and set a $150.00 price target on shares of Zscaler in a report on Thursday, June 11th. Thirty-five research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Stock Performance

NASDAQ ZS opened at $233.73 on Wednesday. Zscaler has a 1 year low of $114.63 and a 1 year 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 firm has a market cap of $38.11 billion, a price-to-earnings ratio of -599.31, a PEG ratio of 20.84 and a beta of 0.94. The company has a fifty day moving average price of $186.15 and a 200-day moving average price of $157.22.

Zscaler (NASDAQ:ZS) last announced its earnings results 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 1.88% and a positive return on equity of 1.23%. The company had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. During the same quarter in the prior year, the company posted $0.89 earnings per share. The firm’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. As a group, equities research analysts predict that Zscaler will post 0.69 EPS for the current fiscal year.

Insider Activity at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,852 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $549,751.52. Following the completion of the sale, the chief executive officer owned 340,186 shares in the company, valued at $65,574,253.36. This trade represents a 0.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 661 shares of Zscaler stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $200.00, for a total transaction of $132,200.00. Following the completion of the sale, the insider directly owned 38,308 shares in the company, valued at $7,661,600. This trade represents a 1.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 29,053 shares of company stock worth $5,610,165 over the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ZS. Burkett Financial Services LLC bought a new position in Zscaler in the 3rd quarter valued at $27,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler in the fourth quarter worth $30,000. Elevation Wealth Partners LLC raised its position in shares of Zscaler by 84.3% in the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock worth $31,000 after buying an additional 70 shares in the last quarter. Reflection Asset Management purchased a new stake in shares of Zscaler in the fourth quarter worth $40,000. Finally, POM Investment Strategies LLC boosted its stake in Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after buying an additional 105 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

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.