Zscaler (NASDAQ:ZS – Get Free Report) had its price objective boosted by analysts at Stephens from $200.00 to $225.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has an “overweight” rating on the stock. Stephens’ price target points to a potential upside of 26.55% from the company’s previous close.
ZS has been the subject of a number of other reports. KeyCorp increased their price target on Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a research report on Friday, August 21st. FBN Securities reiterated an “outperform” rating and issued a $175.00 target price on shares of Zscaler in a report on Wednesday, May 27th. Truist Financial set a $210.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. BMO Capital Markets reissued an “outperform” rating and set a $200.00 target price (up from $178.00) on shares of Zscaler in a research report on Friday. Finally, Robert W. Baird cut their target price on Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a research note on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $215.54.
Read Our Latest Analysis on Zscaler
Zscaler Trading Up 2.9%
Zscaler (NASDAQ:ZS – Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $898.18 million during the quarter, compared to analyst estimates of $876.96 million. During the same period in the previous year, the company posted $0.89 EPS. The company’s revenue for the quarter was up 24.9% on a year-over-year basis. 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 predict that Zscaler will post 0.13 earnings per share for the current fiscal year.
Insider Activity at Zscaler
In other news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This trade represents a 6.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of Zscaler stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the sale, the chief financial officer directly owned 41,901 shares in the company, valued at $5,204,942.22. This trade represents a 6.68% 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 16,772 shares of company stock valued at $2,139,799 in the last three months. Insiders own 17.20% of the company’s stock.
Institutional Trading of Zscaler
A number of large investors have recently bought and sold shares of ZS. Binnacle Investments Inc bought a new position in shares of Zscaler during the 3rd quarter worth $25,000. AlphaCentric Advisors LLC bought a new stake in Zscaler in the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler in the 4th quarter valued at about $30,000. POM Investment Strategies LLC lifted its holdings in 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 during the last quarter. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Zscaler during the fourth quarter valued at about $32,000. 46.45% of the stock is owned by hedge funds and other institutional investors.
More Zscaler News
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
Zscaler Company Profile
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.
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