Zscaler (NASDAQ:ZS) Price Target Lowered to $260.00 at TD Cowen

Zscaler (NASDAQ:ZS) had its target price dropped by equities researchers at TD Cowen from $330.00 to $260.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen’s price target would suggest a potential upside of 74.48% from the company’s previous close.

Other equities research analysts also recently issued reports about the company. Sanford C. Bernstein raised Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price objective for the company in a report on Friday, February 13th. Capital One Financial set a $320.00 price target on shares of Zscaler and gave the company an “overweight” rating in a research report on Wednesday, November 26th. HC Wainwright reissued a “buy” rating on shares of Zscaler in a research report on Wednesday, November 26th. KeyCorp reduced their target price on shares of Zscaler from $300.00 to $250.00 and set an “overweight” rating for the company in a report on Tuesday, February 17th. Finally, Piper Sandler decreased their target price on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating for the company in a research note on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus price target of $293.84.

Zscaler Stock Up 4.0%

NASDAQ:ZS traded up $5.73 during trading hours on Tuesday, hitting $149.01. The company’s stock had a trading volume of 2,469,946 shares, compared to its average volume of 2,291,752. Zscaler has a 52-week low of $141.56 and a 52-week high of $336.99. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The stock has a market capitalization of $23.76 billion, a P/E ratio of -573.98, a price-to-earnings-growth ratio of 325.66 and a beta of 1.02. The stock has a fifty day moving average of $204.99 and a 200-day moving average of $258.24.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.11. The business had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company’s revenue for the quarter was up 25.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.77 EPS. On average, equities analysts forecast that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 3,084 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $711,848.88. Following the transaction, the insider directly owned 77,002 shares in the company, valued at approximately $17,773,601.64. This represents a 3.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Adam Geller sold 2,060 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $475,489.20. Following the completion of the sale, the insider owned 52,148 shares in the company, valued at approximately $12,036,801.36. This represents a 3.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,350 shares of company stock valued at $4,471,509 over the last three months. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently bought and sold shares of the stock. Binnacle Investments Inc acquired a new stake in shares of Zscaler in the third quarter worth approximately $25,000. Tradewinds Capital Management LLC boosted its holdings in shares of Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC purchased a new stake in shares of Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth $29,000. Finally, Quaker Wealth Management LLC raised its position in shares of Zscaler by 200.0% in the 2nd quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after buying an additional 194 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Rosenblatt reaffirmed a “buy” and set a $280 price target (roughly +88% from current levels), a strong vote of confidence that likely supports today’s upside. Rosenblatt Reaffirms Buy
• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, deepening ZS’s local footprint and positioning it to capture AI‑security demand in a large market — a tangible growth catalyst. Airtel Partnership
• Positive Sentiment: Bullish research pieces (e.g., Seeking Alpha) argue Zscaler is a compelling buy with a durable data moat and expanding AI/security product set — these narratives help investor confidence on dips. Seeking Alpha Buy Thesis
• Neutral Sentiment: Analysts and previews flag the upcoming Q2 results as a near‑term catalyst: consensus expects ~23% revenue growth with AI security demand in focus — outcome will determine follow‑through. Q2 Earnings Preview
• Neutral Sentiment: Several large firms trimmed price targets (Robert W. Baird, JPMorgan, Mizuho) but kept upbeat ratings — this is mixed: it reduces implied upside but maintains institutional support. Analyst Target Changes
• Negative Sentiment: BTIG cut its price target sharply from $365 to $209 (still a “buy”) — the downgrade trimmed investor expectations and likely weighed on sentiment. BTIG Target Cut
• Negative Sentiment: Sector pain after Anthropic released a new AI security tool triggered a broad selloff in cybersecurity names (CrowdStrike, Palo Alto, Datadog, Zscaler among them), creating short‑term downward pressure. Anthropic Tool Sector Selloff
• Negative Sentiment: Macro headline risk: reports that the White House planned to raise global tariffs contributed to recent selling in ZS and peers, adding an extra layer of uncertainty for enterprise IT spend. Tariff Headline

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.