Zscaler (NASDAQ:ZS) Earns Outperform Rating from Wedbush

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating restated by research analysts at Wedbush in a research report issued to clients and investors on Monday, Benzinga reports. They currently have a $215.00 price target on the stock. Wedbush’s price target indicates a potential upside of 8.39% from the company’s previous close.

Several other brokerages also recently issued reports on ZS. Barclays upped their price target on shares of Zscaler from $192.00 to $200.00 and gave the stock an “overweight” rating in a report on Friday, September 4th. Needham & Company LLC lifted their target price on shares of Zscaler from $180.00 to $215.00 and gave the stock a “buy” rating in a research report on Friday, September 4th. Stephens set a $215.00 target price on shares of Zscaler in a report on Friday, September 4th. Roth Capital reaffirmed a “neutral” rating and set a $170.00 price target on shares of Zscaler in a research note on Saturday, September 5th. Finally, TD Cowen reiterated a “buy” rating and set a $200.00 price target on shares of Zscaler in a report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $219.78.

Zscaler Price Performance

Shares of ZS stock traded down $1.04 on Monday, hitting $198.35. 1,727,377 shares of the company’s stock were exchanged, compared to its average volume of 3,398,146. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a market cap of $32.34 billion, a P/E ratio of -508.59, a price-to-earnings-growth ratio of 20.12 and a beta of 0.95. The company has a 50 day moving average of $175.23 and a 200 day moving average of $153.83.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.Zscaler’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.89 EPS. 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, equities research analysts predict that Zscaler will post 0.7 EPS for the current year.

Insider Activity at Zscaler

In related 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 transaction of $1,075,215.28. Following the transaction, the insider directly owned 43,553 shares of the company’s stock, valued at $8,395,276.28. This represents a 11.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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, CFO Kevin Rubin sold 5,957 shares of Zscaler stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $1,148,271.32. Following the completion of the sale, the chief financial officer directly owned 43,287 shares of the company’s stock, valued at approximately $8,344,002.12. This trade represents a 12.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 29,175 shares of company stock worth $5,628,465 over the last quarter. 17.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Zscaler during the 2nd quarter worth approximately $1,396,028,000. First Trust Advisors LP grew its holdings in Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after buying an additional 935,781 shares in the last quarter. Geode Capital Management LLC raised its position in Zscaler by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company’s stock valued at $464,783,000 after buying an additional 98,140 shares during the last quarter. Pictet Asset Management Holding SA lifted its stake in Zscaler by 52.5% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after acquiring an additional 661,413 shares in the last quarter. Finally, Amundi grew its stake in shares of Zscaler by 12.8% in the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after acquiring an additional 129,563 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

About Zscaler

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.