Zscaler (NASDAQ:ZS) Earns “Outperform” Rating from Wedbush

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reaffirmed by investment analysts at Wedbush in a research note issued on Monday, Benzinga reports. They presently have a $215.00 target price on the stock. Wedbush’s target price suggests a potential upside of 8.92% from the stock’s current price.

Several other equities analysts have also recently commented on ZS. Scotiabank reiterated an “outperform” rating on shares of Zscaler in a research note on Friday, September 4th. BTIG Research reissued a “neutral” rating on shares of Zscaler in a report on Friday, September 4th. Piper Sandler upped their price target on shares of Zscaler from $160.00 to $175.00 and gave the stock a “neutral” rating in a research report on Friday, September 4th. Morgan Stanley upped their price target on Zscaler from $145.00 to $165.00 and gave the company an “equal weight” rating in a research note on Friday, September 4th. Finally, Wolfe Research reissued an “outperform” rating and issued a $150.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and an average price target of $219.78.

Zscaler Stock Down 1.0%

Shares of Zscaler stock traded down $2.01 during trading on Monday, hitting $197.39. 899,471 shares of the stock traded hands, compared to its average volume of 3,393,334. The stock has a market cap of $32.18 billion, a P/E ratio of -506.64, a PEG ratio of 20.12 and a beta of 0.95. The company has a fifty day moving average price of $175.23 and a two-hundred day moving average price of $153.83. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. 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 posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. The company 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%.The business’s revenue was up 24.9% compared to the same quarter last year. During the same period last year, the company 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. Equities research analysts predict that Zscaler will post 0.7 EPS for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, insider Adam Geller sold 5,578 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,075,215.28. Following the completion of the sale, the insider owned 43,553 shares in the company, valued at $8,395,276.28. This trade represents a 11.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, insider Robert Schlossman sold 5,394 shares of Zscaler stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the transaction, the insider owned 61,525 shares of the company’s stock, valued at $12,305,000. The trade was a 8.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,175 shares of company stock worth $5,628,465 over the last 90 days. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. WINTON GROUP Ltd boosted its holdings in Zscaler by 56.5% in the 2nd quarter. WINTON GROUP Ltd now owns 4,890 shares of the company’s stock valued at $690,000 after purchasing an additional 1,765 shares during the period. NewEdge Advisors LLC grew its stake in shares of Zscaler by 7.8% during the second quarter. NewEdge Advisors LLC now owns 4,626 shares of the company’s stock worth $653,000 after buying an additional 336 shares during the last quarter. Hudock Inc. acquired a new position in Zscaler in the 2nd quarter worth about $311,000. Allworth Financial LP boosted its stake in shares of Zscaler by 7.7% during the second quarter. Allworth Financial LP now owns 3,578 shares of the company’s stock valued at $505,000 after purchasing an additional 256 shares in the last quarter. Finally, Arizona State Retirement System increased its stake in shares of Zscaler by 6.4% in the second quarter. Arizona State Retirement System now owns 29,965 shares of the company’s stock valued at $4,230,000 after buying an additional 1,799 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.