10,616 Shares in Zscaler, Inc. $ZS Bought by Jupiter Topco LLC

Key Points

• Jupiter Topco LLC purchased 10,616 Zscaler shares during the second quarter, valued at approximately $1.5 million. Hedge funds and other institutional investors own 46.45% of the company.
• Zscaler exceeded quarterly expectations with adjusted EPS of $1.19 versus $1.09 expected and revenue of $898.2 million versus $877.0 million, representing 24.9% year-over-year growth.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $217.08, although shares recently traded at $169.80 and the company faces concerns over slowing fiscal 2027 growth and weaker free cash flow.

Jupiter Topco LLC purchased a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 10,616 shares of the company's stock, valued at approximately $1,498,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Kentucky Retirement Systems Insurance Trust Fund increased its stake in Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock worth $770,000 after acquiring an additional 36 shares during the last quarter. Parallel Advisors LLC lifted its stake in shares of Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company's stock valued at $119,000 after purchasing an additional 39 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Zscaler by 7.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock worth $204,000 after purchasing an additional 45 shares during the period. Larson Financial Group LLC boosted its holdings in shares of Zscaler by 2.6% in the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company's stock worth $611,000 after purchasing an additional 52 shares during the period. Finally, Crossmark Global Holdings Inc. increased its position in shares of Zscaler by 6.1% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company's stock valued at $292,000 after purchasing an additional 56 shares during the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Stock Down 4.5%

Shares of NASDAQ ZS opened at $169.80 on Friday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The stock's fifty day simple moving average is $161.26 and its two-hundred day simple moving average is $150.53. The stock has a market capitalization of $27.46 billion, a PE ratio of -435.38, a price-to-earnings-growth ratio of 104.65 and a beta of 0.95. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.29% and a negative net margin of 1.88%.The firm had revenue of $898.19 million during the quarter, compared to analysts' expectations of $876.96 million. During the same period in the prior year, the business posted $0.89 EPS. The firm's quarterly 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. As a group, analysts expect that Zscaler, Inc. will post 0.13 EPS for the current fiscal year.

Wall Street Analyst Weigh In

ZS has been the subject of a number of analyst reports. Evercore set a $155.00 price target on Zscaler and gave the stock an "in-line" rating in a research 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. FBN Securities restated an "outperform" rating and issued a $175.00 target price on shares of Zscaler in a report on Wednesday, May 27th. Weiss Ratings upgraded shares of Zscaler from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, August 27th. Finally, Wedbush reiterated an "outperform" rating and set a $220.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $217.08.

Insider Activity

In related news, CFO Kevin Rubin sold 503 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total transaction of $87,210.14. Following the completion of the transaction, the chief financial officer owned 40,895 shares in the company, valued at $7,090,375.10. The trade was a 1.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider directly owned 69,366 shares of the company's stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their position. 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 16,772 shares of company stock valued at $2,139,799. Corporate insiders own 17.20% of the company's stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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