Zscaler (NASDAQ:ZS) Given Buy Rating at Rosenblatt Securities

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a note issued to investors on Tuesday,Benzinga reports. They presently have a $280.00 price objective on the stock. Rosenblatt Securities’ price target indicates a potential upside of 87.04% from the stock’s previous close.

Several other analysts also recently weighed in on ZS. Macquarie Infrastructure assumed coverage on Zscaler in a research note on Friday, October 31st. They issued an “outperform” rating and a $390.00 price target on the stock. Morgan Stanley set a $305.00 target price on Zscaler in a research note on Thursday, December 18th. Wedbush raised their price target on Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Stephens dropped their price target on shares of Zscaler from $340.00 to $225.00 and set an “overweight” rating on the stock in a research note on Monday. Finally, Barclays set a $220.00 price objective on shares of Zscaler in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $294.76.

Zscaler Stock Up 4.5%

Shares of ZS traded up $6.42 on Tuesday, reaching $149.70. The stock had a trading volume of 1,051,678 shares, compared to its average volume of 2,229,526. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. Zscaler has a 12-month low of $141.56 and a 12-month high of $336.99. The firm has a market capitalization of $23.87 billion, a price-to-earnings ratio of -571.71, a price-to-earnings-growth ratio of 325.66 and a beta of 1.02. The company has a 50-day simple moving average of $204.99 and a 200-day simple moving average of $258.24.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The firm had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. During the same quarter in the previous year, the business posted $0.77 EPS. The company’s quarterly revenue was up 25.5% on a year-over-year basis. Sell-side analysts predict that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In related news, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the completion of the sale, the executive vice president owned 70,394 shares of the company’s stock, valued at $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Kevin Rubin sold 3,303 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $762,398.46. Following the completion of the transaction, the chief financial officer directly owned 48,161 shares in the company, valued at $11,116,522.02. The trade was a 6.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 19,350 shares of company stock worth $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Binnacle Investments Inc purchased a new position in Zscaler during the third quarter valued at $25,000. Tradewinds Capital Management LLC grew its position in shares of Zscaler by 145.7% during the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC purchased a new position in shares of Zscaler during the third quarter valued at about $26,000. McIlrath & Eck LLC bought a new stake in shares of Zscaler in the third quarter worth about $29,000. Finally, AlphaCentric Advisors LLC purchased a new stake in shares of Zscaler in the fourth quarter worth about $29,000. 46.45% of the stock is currently owned by institutional investors.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, strengthening Zscaler’s local footprint, talent pipeline and go‑to‑market in a large growth market — strategic partnership that supports long-term revenue expansion. Bharti Airtel partners with Zscaler
• Positive Sentiment: A bullish deep-dive argues Zscaler remains a compelling buy due to strong gross retention, expanding AI/agent security capabilities and a data moat — a constructive fundamental view that could support medium/long-term multiple expansion if execution continues. Zscaler Scales Zero Trust And AI Agent Security
• Neutral Sentiment: BTIG cut its price target from $365 to $209 but kept a “buy” rating — a meaningful reduction in upside expectations even as the analyst retains conviction. BTIG price target change
• Neutral Sentiment: Robert W. Baird trimmed its target (to $300) and JPMorgan also lowered its target (to $267) while maintaining positive ratings — analysts are moderating targets amid sector multiple pressure rather than cutting on company fundamentals. Baird PT cut JPMorgan PT cut
• Neutral Sentiment: Analysts previewing Zscaler’s upcoming Q2 results expect ~23% revenue growth and are focused on AI security demand — earnings will be the next major catalyst to confirm growth vs. margin tradeoffs. Q2 earnings preview
• Negative Sentiment: A sector rout followed Anthropic’s launch of a new AI security tool that can scan code for vulnerabilities, prompting investors to worry AI could displace some vendor workflows — this sparked broad selling across cybersecurity names, weighing on ZS. Cybersecurity stocks drop
• Negative Sentiment: White House tariff plans (reporting of higher global tariffs) were cited as a near‑term negative catalyst pushing shares lower, adding macro trade‑policy risk unrelated to Zscaler’s fundamentals. Why Zscaler Stock Is Falling Today
• Negative Sentiment: Mizuho and others have trimmed price targets in recent days (e.g., Mizuho to $265), reflecting industry multiple compression — analyst downgrades/cuts can sustain selling pressure until earnings or clearer AI impact evidence. Mizuho PT cut

About Zscaler

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.