Zscaler (NASDAQ:ZS) Director James Beer Sells 177 Shares

Zscaler, Inc. (NASDAQ:ZS) Director James Beer sold 177 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total transaction of $33,985.77. Following the sale, the director directly owned 4,030 shares of the company’s stock, valued at $773,800.30. The trade was a 4.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zscaler Trading Up 3.1%

ZS opened at $197.47 on Friday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The stock has a market capitalization of $32.20 billion, a PE ratio of -506.33, a P/E/G ratio of 23.05 and a beta of 0.95. The firm’s fifty day moving average price is $167.06 and its 200 day moving average price is $151.50.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million during the quarter, compared to the consensus estimate 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 was up 24.9% on a year-over-year basis. During the same quarter in the previous year, the firm 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. As a group, research analysts expect that Zscaler, Inc. will post 0.61 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Robert W. Baird upped their price target on Zscaler from $220.00 to $230.00 and gave the company an “outperform” rating in a research report on Friday, September 4th. Stephens set a $215.00 target price on shares of Zscaler in a research note on Friday, September 4th. Evercore set a $155.00 price target on shares of Zscaler and gave the stock an “in-line” rating in a research report on Wednesday, May 27th. Weiss Ratings lowered shares of Zscaler from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, September 10th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research report on Wednesday, August 26th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Zscaler presently has a consensus rating of “Moderate Buy” and an average target price of $218.38.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor interest is supported by Zscaler’s expansion beyond its traditional seat-based business into data security and “Security for AI,” areas that could broaden its long-term growth opportunity. The CEO also discussed the role of human ingenuity in the AI-safety debate, highlighting the company’s engagement with a major technology theme. Zscaler CEO on AI Safety
• Positive Sentiment: Options activity and technical indicators remain supportive: traders have reportedly purchased significant call-option volume, while the stock is trading well above its 50-day and 200-day moving averages. Zscaler has also been identified as a strong momentum stock. Zscaler Momentum Stock Analysis
• Positive Sentiment: Analyst sentiment is broadly favorable. Zscaler has a consensus “Moderate Buy” rating and a reported average price target of $218.38, with recent bullish targets of $215 from Stephens and Wedbush and $205 from Citigroup.
• Neutral Sentiment: Several insiders, including CEO Jagtar Chaudhry and CFO Kevin Rubin, sold shares totaling roughly 21,473 shares, or about $4.1 million. However, the transactions were made under pre-arranged Rule 10b5-1 plans or to cover tax withholding on vested equity, making them a limited bearish signal. Zscaler Insider Sales
• Negative Sentiment: Investors remain concerned that slowing annual recurring revenue growth could pressure Zscaler’s premium valuation, despite continued strength in revenue, platform adoption and newer security offerings. Zscaler Growth Engine and ARR Analysis

Hedge Funds Weigh In On Zscaler

Several hedge funds and other institutional investors have recently made changes to their positions in ZS. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the 4th quarter valued at $30,000. Reflection Asset Management acquired a new position in shares of Zscaler during the fourth quarter valued at $40,000. POM Investment Strategies LLC raised 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 purchasing an additional 105 shares in the last quarter. Western Wealth Management LLC acquired a new stake in Zscaler in the first quarter worth about $33,000. Finally, Creative Financial Designs Inc. ADV lifted its stake in shares of Zscaler by 26,100.0% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 262 shares of the company’s stock worth $59,000 after acquiring an additional 261 shares during the period. 46.45% of the stock is currently owned by institutional investors and hedge funds.

About Zscaler

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.