Rosenblatt Securities Cuts Zscaler (NASDAQ:ZS) Price Target to $200.00

Zscaler (NASDAQ:ZS) had its target price reduced by analysts at Rosenblatt Securities from $223.00 to $200.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Rosenblatt Securities’ price target indicates a potential upside of 8.34% from the stock’s previous close.

A number of other research analysts have also recently commented on ZS. Royal Bank Of Canada reiterated an “outperform” rating on shares of Zscaler in a research note on Wednesday. B. Riley Financial upgraded Zscaler from a “neutral” rating to a “buy” rating and dropped their price target for the company from $275.00 to $225.00 in a research note on Monday, May 18th. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. UBS Group reiterated a “buy” rating on shares of Zscaler in a research note on Wednesday, May 20th. Finally, Sanford C. Bernstein dropped their price target on Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research note on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and a consensus target price of $245.14.

Zscaler Stock Up 1.2%

NASDAQ ZS opened at $184.60 on Wednesday. The business has a fifty day moving average price of $145.75 and a two-hundred day moving average price of $192.65. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The stock has a market capitalization of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.60 million. During the same period in the prior year, the company earned $0.84 earnings per share. The company’s quarterly revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities analysts expect that Zscaler will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the transaction, the insider owned 46,949 shares of the company’s stock, valued at $7,208,079.97. This trade represents a 4.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 over the last 90 days. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

A number of hedge funds have recently added to or reduced their stakes in ZS. Integrated Wealth Concepts LLC boosted its stake in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares during the period. Empowered Funds LLC raised its holdings in shares of Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC bought a new stake in shares of Zscaler in the 2nd quarter worth approximately $252,000. Finally, Jump Financial LLC bought a new stake in shares of Zscaler in the 2nd quarter worth approximately $3,019,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

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.