Zscaler (NASDAQ:ZS) Shares Gap Up – Should You Buy?

Zscaler, Inc. (NASDAQ:ZS) gapped up before the market opened on Monday . The stock had previously closed at $164.54, but opened at $172.80. Zscaler shares last traded at $180.5910, with a volume of 1,042,948 shares.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on ZS shares. Zacks Research cut shares of Zscaler from a “hold” rating to a “strong sell” rating in a research note on Thursday, September 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $225.00 target price on shares of Zscaler in a report on Friday, September 4th. Evercore set a $155.00 price target on Zscaler and gave the stock an “in-line” rating in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Zscaler in a report on Friday, September 4th. Finally, Barclays boosted their price objective on Zscaler from $192.00 to $200.00 and gave the company an “overweight” rating in a research report on Friday, September 4th. Thirty-four research 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. According to data from MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and a consensus target price of $216.53.

Zscaler Price Performance

The firm’s fifty day simple moving average is $163.38 and its 200 day simple moving average is $150.40. The firm has a market cap of $30.28 billion, a P/E ratio of -474.24, a P/E/G ratio of 20.42 and a beta of 0.95. 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 (NASDAQ:ZS) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The firm had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same quarter last year, the business posted $0.89 earnings per share. The business’s quarterly revenue was up 24.9% compared to the same quarter last year. 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, analysts forecast that Zscaler, Inc. will post 0.59 earnings per share for the current year.

Insider Transactions at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares in the company, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 firm’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider directly owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 16,772 shares of company stock worth $2,139,799. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC increased its holdings in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after buying an additional 239 shares during the last quarter. NewEdge Advisors LLC grew its position in Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC grew its position in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in Zscaler during the second quarter worth approximately $252,000. Finally, Jump Financial LLC bought a new stake in Zscaler during the second quarter worth approximately $3,019,000. Institutional investors own 46.45% of the company’s stock.

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.