Citigroup Has Lowered Expectations for Zscaler (NASDAQ:ZS) Stock Price

Citigroup has lowered its price target for Zscaler (NASDAQ:ZS) from $365 to $350, maintaining a "buy" rating. This adjustment suggests a potential 41.86% upside from the current stock price. Other analysts have varied opinions, with some increasing and others decreasing their targets. Zscaler's stock recently traded down 1.9%, and insiders have been selling shares. The company reported strong quarterly earnings, exceeding expectations, with a 25.5% revenue increase year-over-year.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective lowered by equities researchers at Citigroup from $365.00 to $350.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's price objective would indicate a potential upside of 41.86% from the stock's current price.

CrowdStrike at All-Time High: Still a Buy, or Time to Trim?

Several other research analysts have also commented on ZS. Stifel Nicolaus decreased their price objective on shares of Zscaler from $330.00 to $320.00 and set a "buy" rating for the company in a report on Wednesday. Canaccord Genuity Group lifted their price objective on Zscaler from $320.00 to $340.00 and gave the company a "buy" rating in a research report on Thursday, September 4th. Piper Sandler raised their target price on Zscaler from $260.00 to $280.00 and gave the company a "neutral" rating in a research note on Wednesday, September 3rd. Robert W. Baird upped their price target on Zscaler from $350.00 to $360.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, JPMorgan Chase & Co. raised their price objective on Zscaler from $351.00 to $354.00 and gave the company an "overweight" rating in a research report on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Zscaler presently has an average rating of "Moderate Buy" and a consensus price target of $319.38.

Check Out Our Latest Stock Analysis on Zscaler

Zscaler Trading Down 1.9%

Institutions Are Fueling CrowdStrike’s Next Leg Higher

Shares of Zscaler stock traded down $4.77 during trading on Monday, reaching $246.73. 1,732,898 shares of the stock were exchanged, compared to its average volume of 2,007,275. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. The firm has a market cap of $39.35 billion, a price-to-earnings ratio of -948.93 and a beta of 1.07. Zscaler has a 1 year low of $164.78 and a 1 year high of $336.99. The stock's fifty day moving average is $303.63 and its 200 day moving average is $291.66.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business had revenue of $788.11 million during the quarter, compared to analysts' expectations of $773.86 million. During the same quarter last year, the business posted $0.77 EPS. The business's revenue was up 25.5% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS. Q2 2026 guidance at 0.890-0.900 EPS. As a group, equities research analysts expect that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

MarketBeat Week in Review – 09/01 - 09/05

In other Zscaler news, insider Adam Geller sold 11,193 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total transaction of $3,141,875.10. Following the completion of the sale, the insider directly owned 53,942 shares in the company, valued at $15,141,519.40. The trade was a 17.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert Schlossman sold 7,006 shares of the company's stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $305.57, for a total transaction of $2,140,823.42. Following the sale, the insider directly owned 76,132 shares of the company's stock, valued at approximately $23,263,655.24. This represents a 8.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 43,084 shares of company stock valued at $12,446,825. Company insiders own 17.20% of the company's stock.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently bought and sold shares of the stock. Binnacle Investments Inc bought a new stake in shares of Zscaler during the 3rd quarter valued at $25,000. SVB Wealth LLC bought a new stake in Zscaler during the first quarter worth $26,000. Tradewinds Capital Management LLC boosted its holdings in shares of Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company's stock valued at $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC bought a new position in shares of Zscaler in the 3rd quarter valued at $26,000. Finally, McIlrath & Eck LLC bought a new stake in shares of Zscaler during the 3rd quarter worth $29,000. 46.45% of the stock is owned by institutional investors.

Zscaler Company Profile

(Get Free Report)

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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