Zscaler (NASDAQ:ZS) Given “Overweight” Rating at Cantor Fitzgerald

Zscaler (NASDAQ:ZS)‘s stock had its “overweight” rating reaffirmed by investment analysts at Cantor Fitzgerald in a note issued to investors on Friday, Benzinga reports. They presently have a $225.00 target price on the stock. Cantor Fitzgerald’s price objective would suggest a potential upside of 26.55% from the company’s current price.

A number of other research firms have also weighed in on ZS. Stifel Nicolaus lifted their target price on Zscaler from $175.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Robert W. Baird decreased their price target on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Stephens reiterated an “overweight” rating and issued a $200.00 price objective on shares of Zscaler in a research report on Friday, June 12th. KeyCorp lifted their price objective on Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a research note on Friday, August 21st. Finally, Rosenblatt Securities restated a “buy” rating and set a $200.00 target price on shares of Zscaler in a research report on Friday. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Zscaler currently 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. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The stock’s 50-day simple moving average is $160.51 and its 200 day simple moving average is $150.39. The stock has a market capitalization of $28.75 billion, a P/E ratio of -370.41, a P/E/G ratio of 101.67 and a beta of 0.95. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

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, beating the consensus estimate of $1.09 by $0.10. The company had revenue of $898.18 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company’s quarterly revenue was up 24.9% compared to the same quarter last year. During the same quarter in the previous year, the firm 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 0.13 EPS for the current year.

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 503 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total value of $87,210.14. Following the completion of the transaction, the chief financial officer directly owned 40,895 shares in the company, valued at approximately $7,090,375.10. The trade was a 1.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction 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 completion of the transaction, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% 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. Over the last quarter, insiders sold 16,772 shares of company stock valued at $2,139,799. 17.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System increased its position in shares of Zscaler by 13,837.9% in the second quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock valued at $2,736,727,000 after acquiring an additional 19,249,679 shares during the period. BlackRock Inc. purchased a new stake in Zscaler in the 2nd quarter worth approximately $1,396,028,000. First Trust Advisors LP grew its position in shares of Zscaler by 36.2% in the 1st 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 during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after acquiring an additional 777,414 shares in the last quarter. Finally, State Street Corp increased its position in Zscaler by 3.4% during the 4th quarter. State Street Corp now owns 2,337,604 shares of the company’s stock valued at $525,774,000 after purchasing an additional 77,800 shares during the period. Institutional investors own 46.45% of the company’s stock.

Zscaler News Summary

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.