Zscaler (NASDAQ:ZS) Price Target Raised to $270.00

Zscaler (NASDAQ:ZS) had its price target lifted by Freedom Broker from $230.00 to $270.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has a buy rating on the stock.

Several other brokerages also recently commented on ZS. Morgan Stanley increased their target price on shares of Zscaler from $165.00 to $185.00 and gave the company an “equal weight” rating in a report on Wednesday, October 7th. Stifel Nicolaus boosted their price target on shares of Zscaler from $200.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Wells Fargo & Company upped their price objective on shares of Zscaler from $215.00 to $260.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 7th. BMO Capital Markets upped their price objective on shares of Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a research report on Friday, September 4th. Finally, Piper Sandler increased their price objective on shares of Zscaler from $160.00 to $175.00 and gave the company a “neutral” rating in a research note on Friday, September 4th. Thirty-seven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $240.14.

Zscaler Stock Up 7.3%

Shares of NASDAQ:ZS opened at $255.15 on Thursday. The business’s 50 day moving average is $196.94 and its 200 day moving average is $163.22. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The stock has a market cap of $41.60 billion, a price-to-earnings ratio of -654.23, a PEG ratio of 24.52 and a beta of 0.94. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 EPS 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 business had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same period in the prior year, the firm posted $0.89 EPS. Zscaler’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. On average, sell-side analysts forecast that Zscaler will post 0.69 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 5,394 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total transaction of $1,078,800.00. Following the transaction, the insider owned 61,525 shares of the company’s stock, valued at $12,305,000. This represents a 8.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the stock in a transaction on Friday, September 25th. The stock was sold at an average price of $197.28, for a total value of $102,388.32. Following the transaction, the chief financial officer owned 42,768 shares of the company’s stock, valued at $8,437,271.04. The trade was a 1.20% 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. Over the last ninety days, insiders sold 54,053 shares of company stock valued at $11,256,876. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Institutional investors have recently added to or reduced their stakes in the business. Apollon Wealth Management LLC grew its stake in Zscaler by 45.4% in the 3rd quarter. Apollon Wealth Management LLC now owns 5,479 shares of the company’s stock valued at $1,093,000 after buying an additional 1,712 shares in the last quarter. Capelight Capital Asset Management LP bought a new stake in Zscaler during the 3rd quarter valued at $3,191,000. Kingswood Wealth Advisors LLC purchased a new stake in shares of Zscaler during the third quarter worth $280,000. Signaturefd LLC lifted its position in shares of Zscaler by 3.9% during the third quarter. Signaturefd LLC now owns 1,401 shares of the company’s stock worth $279,000 after acquiring an additional 52 shares in the last quarter. Finally, Citizens Financial Group Inc. RI purchased a new stake in shares of Zscaler during the third quarter worth $2,040,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Higher price target: Freedom Broker raised its target on Zscaler from $230 to $270 while maintaining a “Buy” rating, citing continued strength across cybersecurity stocks. Freedom Broker raises Zscaler price target
• Positive Sentiment: Data-security growth: Zscaler’s Data Security annual recurring revenue surpassed $500 million and grew more than 30% year over year. Its security tools reportedly appeared in roughly 70% of “Security for AI” deals, supporting expectations for larger enterprise contracts and expansion within existing customers. Zscaler data security growth
• Positive Sentiment: AI partnership narrative: Zscaler is integrating with NVIDIA’s OpenShell architecture to help enterprises secure autonomous AI agents and sensitive data flows, linking its AI-security strategy to customer spending. NVIDIA and Zscaler AI security partnership
• Positive Sentiment: Investor interest: Hightower’s Stephanie Link reportedly purchased Zscaler shares, providing a favorable signal from an institutional investment manager. Hightower buys Zscaler shares
• Neutral Sentiment: Mixed analyst view: DA Davidson initiated coverage with a “Neutral” rating and a $215 target, below recent trading levels, tempering the more optimistic target increases. DA Davidson initiates Zscaler coverage
• Negative Sentiment: Legal investigation: Pomerantz LLP announced an investigation into potential securities-law violations on behalf of Zscaler investors. The development could increase litigation and disclosure risks, although no wrongdoing has been established. Pomerantz investigation of Zscaler

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization’s network to users.