Zscaler (NASDAQ:ZS) Research Coverage Started at Wedbush

Wedbush initiated coverage on shares of Zscaler (NASDAQ:ZS) in a research note issued to investors on Friday, MarketBeat reports. The firm issued an outperform rating and a $215.00 price objective on the stock.

A number of other equities research analysts have also commented on ZS. Sanford C. Bernstein reduced their price target on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Citigroup raised their price objective on Zscaler from $175.00 to $205.00 and gave the stock a “buy” rating in a research report on Tuesday, September 8th. Robert W. Baird raised their price objective on Zscaler from $220.00 to $230.00 and gave the stock an “outperform” rating in a research report on Friday, September 4th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $220.00 price objective on shares of Zscaler in a research note on Wednesday, September 2nd. Finally, Guggenheim reiterated a “buy” rating and issued a $214.00 target price on shares of Zscaler in a report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $216.53.

Zscaler Stock Performance

Shares of NASDAQ ZS opened at $164.54 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The firm has a 50 day moving average price of $163.38 and a two-hundred day moving average price of $150.40. The stock has a market cap of $26.83 billion, a P/E ratio of -421.90, a price-to-earnings-growth ratio of 20.42 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.89 earnings per share. 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 analysts forecast that Zscaler will post 0.59 EPS for the current year.

Insiders Place Their Bets

In other news, insider Robert Schlossman sold 3,146 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. The trade was a 6.24% 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. In the last 90 days, insiders have sold 16,772 shares of company stock valued at $2,139,799. 17.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors have recently added to or reduced their stakes in the business. Kentucky Retirement Systems Insurance Trust Fund grew its holdings in Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after buying an additional 36 shares in the last quarter. Parallel Advisors LLC lifted its holdings in shares of Zscaler by 10.9% in the third quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after buying an additional 39 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in shares of Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after buying an additional 45 shares in the last quarter. Larson Financial Group LLC boosted its position in shares of Zscaler by 2.6% in the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after acquiring an additional 52 shares during the period. Finally, Crossmark Global Holdings Inc. boosted its position in shares of Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after acquiring an additional 56 shares during the period. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Company Profile

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

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.