Key Points
- Zscaler CEO Jagtar Chaudhry sold 2,852 shares for approximately $549,752, reducing his direct holdings by 0.83% to 340,186 shares. The sale was made to cover tax withholding tied to vested equity awards.
- Zscaler exceeded quarterly expectations, reporting $1.19 in EPS versus $1.09 expected and $898.19 million in revenue, up 24.9% year over year.
- Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $218.38 target price, although investors are watching decelerating annual recurring-revenue growth as a potential valuation risk.
Zscaler, Inc. (NASDAQ:ZS - Get Free Report) Director James Beer sold 177 shares of the business'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 completion of the sale, the director owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a 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.
Zscaler Stock Up 3.1%
ZS stock opened at $197.47 on Friday. The firm has a market cap of $32.20 billion, a PE ratio of -506.33, a P/E/G ratio of 23.05 and a beta of 0.95. 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 firm has a 50 day simple moving average of $167.06 and a 200 day simple moving average of $151.50.
Zscaler (NASDAQ:ZS - Get Free Report) 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. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The company had revenue of $898.19 million for the quarter, compared to analysts' expectations of $876.96 million. During the same quarter in the prior year, the company earned $0.89 earnings per share. The firm's revenue 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. Equities research analysts forecast that Zscaler, Inc. will post 0.61 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In
Several equities research analysts recently commented on the stock. UBS Group reduced their price target on shares of Zscaler from $260.00 to $225.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Wedbush began coverage on Zscaler in a research report on Friday, September 11th. They issued an "outperform" rating and a $215.00 target price for the company. Berenberg Bank set a $200.00 price target on Zscaler in a report on Thursday, May 28th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Zscaler in a research report on Friday, September 4th. Finally, Morgan Stanley raised their price objective on Zscaler from $145.00 to $165.00 and gave the stock an "equal weight" rating in a research report on Friday, September 4th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $218.38.
Get Our Latest Report on Zscaler
Institutional Inflows and Outflows
Several hedge funds have recently bought and sold shares of the company. Parkside Financial Bank & Trust increased its position in shares of Zscaler by 18.8% in the second quarter. Parkside Financial Bank & Trust now owns 417 shares of the company's stock valued at $59,000 after acquiring an additional 66 shares during the last quarter. Koshinski Asset Management Inc. grew its stake in Zscaler by 2.7% in the first quarter. Koshinski Asset Management Inc. now owns 3,036 shares of the company's stock valued at $426,000 after purchasing an additional 79 shares in the last quarter. J.W. Cole Advisors Inc. raised its stake in shares of Zscaler by 2.0% during the 4th quarter. J.W. Cole Advisors Inc. now owns 4,106 shares of the company's stock worth $908,000 after purchasing an additional 80 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of Zscaler by 12.3% in the first quarter. Parallel Advisors LLC now owns 793 shares of the company's stock valued at $111,000 after buying an additional 87 shares in the last quarter. Finally, Kestra Private Wealth Services LLC increased its holdings in Zscaler by 1.1% during the first quarter. Kestra Private Wealth Services LLC now owns 8,707 shares of the company's stock worth $1,222,000 after buying an additional 92 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.
Key Zscaler News
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
About Zscaler
(
Get Free Report)
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.
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