Zscaler (NASDAQ:ZS) Stock Price Up 2.7% – Should You Buy?

Zscaler, Inc. (NASDAQ:ZS)’s stock price rose 2.7% during mid-day trading on Friday . The stock traded as high as $130.00 and last traded at $129.52. Approximately 4,749,177 shares changed hands during mid-day trading, an increase of 31% from the average daily volume of 3,613,499 shares. The stock had previously closed at $126.11.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Stephens reaffirmed Overweight on Zscaler and set a $200 price target, implying substantial upside from current levels.
• Positive Sentiment: Canaccord Genuity also reiterated Buy and raised its target to $210, signaling continued analyst confidence in Zscaler’s growth outlook.
• Positive Sentiment: Zscaler unveiled new AI-driven security features for its Zero Trust SASE platform, including the ZAgent Framework and other offerings aimed at securing AI agents, endpoints, partners, unmanaged devices, and Kubernetes environments. Zscaler Bets On AI Agent Security And Identity To Revive Growth
• Positive Sentiment: The company also expanded its Zero Trust SASE solution for a world of AI and distributed users, reinforcing its positioning in a fast-growing security niche. Zscaler expands Zero Trust SASE solution for ‘a world of AI with distributed users’
• Neutral Sentiment: Recent media coverage and Zacks commentary show Zscaler remains one of the more closely watched software names, with investors focused on whether AI-related demand can offset slowing growth expectations.
• Neutral Sentiment: Management commentary at recent events emphasized zero trust as a foundation for deploying AI agents, which supports the long-term thesis but does not appear to be an immediate catalyst.
• Negative Sentiment: Zacks noted that Zscaler is trading near a 52-week low after FY27 guidance pointed to slower growth, even though AI security bookings and platform gains may help support the stock.
• Negative Sentiment: The Schall Law Firm announced a fraud investigation into possible false or misleading statements, adding legal and reputational overhang for investors.

Analysts Set New Price Targets

ZS has been the subject of several research analyst reports. Citigroup restated a “market outperform” rating on shares of Zscaler in a research note on Wednesday, May 27th. Needham & Company LLC restated a “buy” rating and issued a $180.00 price objective on shares of Zscaler in a research note on Wednesday. JPMorgan Chase & Co. dropped their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. BMO Capital Markets dropped their target price on Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Finally, Cantor Fitzgerald reaffirmed an “overweight” rating and set a $225.00 target price on shares of Zscaler in a report on Wednesday. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $214.33.

Zscaler Stock Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The firm has a fifty day simple moving average of $142.55 and a 200 day simple moving average of $177.84. The company has a market capitalization of $20.94 billion, a price-to-earnings ratio of -269.83, a price-to-earnings-growth ratio of 80.98 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same period last year, the company earned $0.84 earnings per share. Zscaler’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, analysts anticipate that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, Director James A. Beer sold 177 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director directly owned 4,384 shares of the company’s stock, valued at approximately $673,075.52. This trade represents a 3.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider directly owned 46,949 shares in the company, valued at $7,208,079.97. This represents a 4.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,130 shares of company stock valued at $1,892,487 in the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of institutional investors have recently made changes to their positions in ZS. Groupama Asset Managment boosted its stake in shares of Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. First Trust Advisors LP boosted its stake in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after acquiring an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after acquiring an additional 777,414 shares during the last quarter. AQR Capital Management LLC boosted its stake in shares of Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after acquiring an additional 741,756 shares during the last quarter. Finally, Pictet Asset Management Holding SA boosted its stake in shares of Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after acquiring an additional 661,413 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Company Profile

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.