Zscaler (NASDAQ:ZS) Price Target Raised to $215.00

Zscaler (NASDAQ:ZS) had its price objective lifted by analysts at Needham & Company LLC from $180.00 to $215.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s target price would suggest a potential upside of 20.92% from the stock’s current price.

A number of other analysts have also recently commented on the company. Wedbush reaffirmed an “outperform” rating and set a $220.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. B. Riley Financial cut their price objective on Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Wells Fargo & Company raised their price objective on Zscaler from $180.00 to $210.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. Piper Sandler decreased their target price on Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a report on Wednesday, May 27th. Finally, FBN Securities reiterated an “outperform” rating and issued a $175.00 target price on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $214.90.

Zscaler Trading Up 2.9%

Shares of Zscaler stock opened at $177.80 on Friday. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market capitalization of $28.75 billion, a price-to-earnings ratio of -370.41, a PEG ratio of 101.67 and a beta of 0.95. The firm’s 50 day simple moving average is $160.51 and its two-hundred day simple moving average is $150.39.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $898.18 million during the quarter, compared to analysts’ expectations of $876.96 million. During the same quarter last year, the company posted $0.89 earnings per share. The business’s quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Analysts predict that Zscaler will post 0.13 EPS for the current year.

Insider Buying and Selling

In related news, CFO Kevin Rubin sold 503 shares of the firm’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $173.38, for a total transaction of $87,210.14. Following the sale, the chief financial officer directly owned 40,895 shares of the company’s stock, valued at $7,090,375.10. This trade represents a 1.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock worth $2,139,799 over the last ninety days. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

A number of hedge funds have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC grew its position in Zscaler by 19.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after buying an additional 239 shares during the period. NewEdge Advisors LLC raised its position in shares of Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after acquiring an additional 370 shares during the period. Empowered Funds LLC raised its position in shares of Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Zscaler during the 2nd quarter worth about $252,000. Finally, Jump Financial LLC purchased a new stake in shares of Zscaler during the 2nd quarter worth about $3,019,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

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.