16,000 Shares in Zscaler, Inc. $ZS Acquired by Capelight Capital Asset Management LP

Key Points

• Capelight Capital Asset Management acquired 16,000 Zscaler shares worth approximately $3.19 million, while institutional investors and hedge funds collectively own 46.45% of the company.
• Analyst sentiment remains broadly positive: 37 analysts rate Zscaler a Buy, eight rate it Hold and one rates it Sell, producing a consensus “Moderate Buy” rating and a $240.14 target price.
• Zscaler reported quarterly revenue of $898.19 million, up 24.9% year over year, and exceeded EPS expectations; however, insiders sold $11.18 million of stock during the quarter and the company faces a reported securities-law investigation.

Capelight Capital Asset Management LP acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 16,000 shares of the company's stock, valued at approximately $3,191,000. Zscaler makes up 1.3% of Capelight Capital Asset Management LP's investment portfolio, making the stock its 25th biggest position.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Zscaler during the second quarter worth $1,396,028,000. First Trust Advisors LP raised its stake in Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after buying an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler in the second quarter valued at $102,271,000. Pictet Asset Management Holding SA raised its stake in Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock valued at $269,285,000 after buying an additional 661,413 shares in the last quarter. Finally, Legal & General Group Plc purchased a new stake in Zscaler during the 2nd quarter worth about $89,740,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

ZS has been the subject of several analyst reports. Weiss Ratings raised Zscaler from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, September 24th. Citigroup increased their price objective on Zscaler from $245.00 to $260.00 and gave the company a "buy" rating in a report on Thursday, October 15th. Scotiabank raised their target price on Zscaler from $240.00 to $255.00 and gave the stock a "sector outperform" rating in a research report on Wednesday, October 7th. KeyCorp boosted their target price on Zscaler from $185.00 to $210.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. Finally, Morgan Stanley upped their price target on Zscaler from $165.00 to $185.00 and gave the company an "equal weight" rating in a report on Wednesday, October 7th. Thirty-seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and a consensus target price of $240.14.

Insider Transactions at Zscaler

In related news, CFO Kevin Rubin sold 519 shares of the firm's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $197.28, for a total transaction of $102,388.32. Following the transaction, the chief financial officer owned 42,768 shares in the company, valued at $8,437,271.04. This trade represents a 1.20% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 1,042 shares of Zscaler stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $235.95, for a total value of $245,859.90. Following the transaction, the insider directly owned 38,308 shares in the company, valued at approximately $9,038,772.60. This trade represents a 2.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 53,550 shares of company stock valued at $11,182,875 over the last quarter. Company insiders own 17.20% of the company's stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Higher price target: Freedom Broker raised its target on Zscaler from $230 to $270 while maintaining a “Buy” rating, citing continued strength across cybersecurity stocks. Freedom Broker raises Zscaler price target
• Positive Sentiment: Data-security growth: Zscaler’s Data Security annual recurring revenue surpassed $500 million and grew more than 30% year over year. Its security tools reportedly appeared in roughly 70% of “Security for AI” deals, supporting expectations for larger enterprise contracts and expansion within existing customers. Zscaler data security growth
• Positive Sentiment: AI partnership narrative: Zscaler is integrating with NVIDIA’s OpenShell architecture to help enterprises secure autonomous AI agents and sensitive data flows, linking its AI-security strategy to customer spending. NVIDIA and Zscaler AI security partnership
• Positive Sentiment: Investor interest: Hightower’s Stephanie Link reportedly purchased Zscaler shares, providing a favorable signal from an institutional investment manager. Hightower buys Zscaler shares
• Neutral Sentiment: Mixed analyst view: DA Davidson initiated coverage with a “Neutral” rating and a $215 target, below recent trading levels, tempering the more optimistic target increases. DA Davidson initiates Zscaler coverage
• Negative Sentiment: Legal investigation: Pomerantz LLP announced an investigation into potential securities-law violations on behalf of Zscaler investors. The development could increase litigation and disclosure risks, although no wrongdoing has been established. Pomerantz investigation of Zscaler

Zscaler Price Performance

Shares of ZS opened at $255.15 on Monday. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The stock has a market cap of $41.60 billion, a PE ratio of -654.23, a price-to-earnings-growth ratio of 24.52 and a beta of 0.94. The firm has a fifty day moving average price of $196.94 and a 200 day moving average price of $163.39.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $876.96 million. During the same quarter last year, the company posted $0.89 earnings per share. The business's quarterly 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. As a group, sell-side analysts anticipate that Zscaler, Inc. will post 0.69 EPS for the current year.

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

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

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