Zscaler (NASDAQ:ZS) Given “Outperform” Rating at Royal Bank Of Canada

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reiterated by equities researchers at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $236.00 price target on the stock. Royal Bank Of Canada’s target price points to a potential upside of 11.22% from the company’s current price.

Other equities research analysts have also recently issued reports about the company. Weiss Ratings raised Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, September 24th. Stifel Nicolaus upped their price target on Zscaler from $200.00 to $235.00 and gave the stock a “buy” rating in a research note on Wednesday. Guggenheim upped their price target on Zscaler from $214.00 to $254.00 and gave the stock a “buy” rating in a research note on Wednesday. Roth Capital reissued a “neutral” rating and issued a $170.00 target price on shares of Zscaler in a research note on Saturday, September 5th. Finally, BMO Capital Markets increased their target price on Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a research note on Friday, September 4th. Thirty-four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $235.15.

Zscaler Trading Down 0.0%

Zscaler stock traded down $0.06 during trading hours on Wednesday, reaching $212.19. The company had a trading volume of 1,145,896 shares, compared to its average volume of 3,360,074. 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 company has a 50-day moving average price of $181.94 and a 200 day moving average price of $155.82. The firm has a market cap of $34.60 billion, a price-to-earnings ratio of -542.27, a P/E/G ratio of 21.03 and a beta of 0.94. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last posted its 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 firm had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. During the same period in the previous year, the firm earned $0.89 earnings per share. The business’s revenue was up 24.9% compared to the same quarter last year. 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 analysts forecast that Zscaler will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Adam Geller sold 5,578 shares of the company’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the transaction, the insider directly owned 43,553 shares of the company’s stock, valued at $8,395,276.28. This represents a 11.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 5,957 shares of the company’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the transaction, the chief financial officer directly owned 43,287 shares in the company, valued at approximately $8,344,002.12. The trade was a 12.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 29,053 shares of company stock valued at $5,610,165. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Burkett Financial Services LLC bought a new position in Zscaler in the third quarter valued at about $27,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler in the fourth quarter valued at about $30,000. Reflection Asset Management bought a new position in Zscaler in the fourth quarter valued at about $40,000. POM Investment Strategies LLC lifted its holdings in Zscaler by 92.9% in the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after acquiring an additional 105 shares during the period. Finally, Versant Capital Management Inc lifted its holdings in Zscaler by 45.6% in the third quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock valued at $46,000 after acquiring an additional 72 shares during the period. Institutional investors own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
• Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
• Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
• Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
• Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

About Zscaler

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

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.