Zscaler (NASDAQ:ZS) Stock Rated “Hold” in New Coverage at DA Davidson

Research analysts at DA Davidson started coverage on shares of Zscaler (NASDAQ:ZS) in a note issued to investors on Wednesday, MarketBeat.com reports. The firm set a “hold” rating and a $215.00 price target on the stock. DA Davidson’s price target suggests a potential downside of 7.06% from the stock’s previous close.

Other equities analysts also recently issued research reports about the company. Barclays upped their target price on Zscaler from $220.00 to $225.00 and gave the company an “overweight” rating in a report on Wednesday, October 7th. Cantor Fitzgerald lifted their price target on shares of Zscaler from $225.00 to $275.00 and gave the company an “overweight” rating in a report on Wednesday, October 7th. Wells Fargo & Company lifted their price target on shares of Zscaler from $215.00 to $260.00 and gave the company an “overweight” rating in a report on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Zscaler in a research report on Friday, September 4th. Finally, 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 report on Friday, September 4th. Thirty-six research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and an average price target of $239.44.

Zscaler Stock Performance

Zscaler stock opened at $231.33 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. The firm has a market cap of $37.72 billion, a P/E ratio of -593.15, a P/E/G ratio of 20.61 and a beta of 0.94. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The firm has a 50-day moving average of $194.52 and a 200-day moving average of $161.88.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The company had revenue of $898.19 million for 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 was up 24.9% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Sell-side analysts expect that Zscaler will post 0.69 EPS for the current year.

Insider Transactions at Zscaler

In other news, CFO Kevin Rubin sold 5,957 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,148,271.32. Following the completion of the transaction, the chief financial officer owned 43,287 shares in the company, valued at $8,344,002.12. This trade represents a 12.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the sale, the insider directly owned 61,525 shares in the company, valued at approximately $12,305,000. The trade was a 8.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 54,053 shares of company stock worth $11,256,876. 17.20% of the stock is owned by company insiders.

Institutional Trading of Zscaler

A number of hedge funds have recently modified their holdings of ZS. Quintet Private Bank Europe S.A. grew its position in shares of Zscaler by 4.5% in the 3rd quarter. Quintet Private Bank Europe S.A. now owns 1,170 shares of the company’s stock worth $233,000 after buying an additional 50 shares during the period. Triumph Capital Management boosted its stake in Zscaler by 6.3% during the third quarter. Triumph Capital Management now owns 923 shares of the company’s stock worth $184,000 after acquiring an additional 55 shares in the last quarter. NFSG Corp boosted its stake in Zscaler by 2.6% during the third quarter. NFSG Corp now owns 2,437 shares of the company’s stock worth $486,000 after acquiring an additional 62 shares in the last quarter. Parkside Financial Bank & Trust grew its holdings in Zscaler by 18.8% in the second quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock worth $59,000 after purchasing an additional 66 shares during the period. Finally, Elevation Wealth Partners LLC grew its holdings in Zscaler by 84.3% in the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock worth $31,000 after purchasing an additional 70 shares during the period. Institutional investors own 46.45% of the company’s stock.

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.