Zscaler’s (ZS) Neutral Rating Reiterated at BTIG Research

Zscaler (NASDAQ:ZS)‘s stock had its “neutral” rating reiterated by analysts at BTIG Research in a research note issued on Wednesday, Benzinga reports.

ZS has been the subject of several other reports. Sanford C. Bernstein upped their price target on Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. Stifel Nicolaus lifted their price target on shares of Zscaler from $175.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Scotiabank increased their price objective on shares of Zscaler from $200.00 to $240.00 and gave the company an “outperform” rating in a report on Monday. Wolfe Research reaffirmed an “outperform” rating and issued a $150.00 target price on shares of Zscaler in a report on Thursday, June 11th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Zscaler in a research report on Friday, September 4th. Thirty-four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and an average price target of $224.90.

Zscaler Price Performance

NASDAQ ZS opened at $212.25 on Wednesday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a market cap of $34.61 billion, a price-to-earnings ratio of -544.23, a PEG ratio of 21.03 and a beta of 0.94. The company’s 50 day moving average is $181.94 and its two-hundred day moving average is $155.82.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data 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. The firm had revenue of $898.19 million during the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the prior year, the company posted $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. As a group, research analysts anticipate that Zscaler will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Kevin Rubin sold 5,957 shares of the business’s 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. The trade was a 12.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 the firm’s stock in a transaction dated 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 completion of the transaction, the insider directly owned 61,525 shares in the company, valued at $12,305,000. This represents a 8.06% 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. Insiders have sold 29,053 shares of company stock worth $5,610,165 in the last 90 days. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of ZS. Burkett Financial Services LLC purchased a new stake in shares of Zscaler in the third quarter valued at approximately $27,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler during the 4th quarter worth $30,000. POM Investment Strategies LLC increased its stake in shares of Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after buying an additional 105 shares during the period. Western Wealth Management LLC purchased a new stake in Zscaler in the first quarter worth about $33,000. Finally, Reflection Asset Management bought a new position in Zscaler during the 4th quarter worth about $40,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Fiscal 2027 guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, removing a key uncertainty for investors. Management’s guidance includes FY27 EPS of approximately $4.86–$4.90 and Q1 EPS of $1.15–$1.16. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: AI is strengthening demand: Management said enterprises need stronger zero-trust defenses as AI agents create new attack surfaces and cyber risks. Investors viewed this as a potentially significant growth tailwind for Zscaler’s cloud security platform. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Analyst target raised: Stifel increased its price target, citing Zscaler’s prospects in AI cybersecurity. The target revision adds to bullish sentiment surrounding the company’s growth outlook. Zscaler: Stifel hikes target on AI cybersecurity prospects
• Positive Sentiment: IBM and Red Hat collaboration: Zscaler is working with IBM and Red Hat on protection for private applications during the period between vulnerability disclosure and patch deployment, expanding its enterprise security ecosystem. Zscaler Collaborates with IBM and Red Hat
• Neutral Sentiment: One analyst retained a Buy rating but lowered conviction from an earlier stronger stance. The analyst cited roughly 25% revenue growth, improving profitability, a net-cash balance sheet and a long-term $10 billion ARR target, while highlighting valuation and execution expectations. Zscaler Analyst Rating
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were provided, but the announcement creates a modest headline and litigation overhang. Pomerantz Investor Alert

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.