354,626 Shares in Zscaler, Inc. $ZS Acquired by Norges Bank

Key Points

• Norges Bank opened a new position in Zscaler, buying 354,626 shares valued at about $79.8 million in the fourth quarter, according to its latest 13F filing.
• Zscaler’s latest quarter beat expectations, with EPS of $1.08 versus the $1.01 estimate and revenue of $850.48 million, up 25.4% year over year.
• Despite the earnings beat, analysts have recently cut price targets, though the stock still carries a Moderate Buy consensus with an average target price of $216.03.

Norges Bank purchased a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 354,626 shares of the company's stock, valued at approximately $79,762,000. Norges Bank owned 0.22% of Zscaler as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also made changes to their positions in ZS. Groupama Asset Managment boosted its holdings in shares of Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after purchasing an additional 741,756 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Zscaler by 6.1% during the third quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company's stock worth $3,406,506,000 after purchasing an additional 652,771 shares during the period. Alyeska Investment Group L.P. acquired a new stake in shares of Zscaler during the third quarter worth approximately $109,440,000. Finally, Danica Pension Livsforsikringsaktieselskab acquired a new stake in shares of Zscaler during the third quarter worth approximately $88,387,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Price Performance

NASDAQ ZS opened at $130.78 on Friday. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $21.15 billion, a PE ratio of -272.45 and a beta of 0.97. The company has a 50 day moving average price of $143.61 and a two-hundred day moving average price of $183.43. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. During the same period in the previous year, the company earned $0.84 earnings per share. Zscaler's revenue for the quarter 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. As a group, equities analysts predict that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Raj Judge sold 2,488 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president directly owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the sale, the insider owned 46,949 shares of the company's stock, valued at $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 12,130 shares of company stock valued at $1,892,487 in the last three months. Company insiders own 17.20% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently commented on ZS. Cantor Fitzgerald decreased their price target on shares of Zscaler from $300.00 to $225.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. Sanford C. Bernstein decreased their price target on shares of Zscaler from $228.00 to $224.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Berenberg Bank set a $200.00 target price on shares of Zscaler in a research note on Thursday, May 28th. BMO Capital Markets reduced their target price on shares of Zscaler from $210.00 to $178.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Finally, Barclays reduced their target price on shares of Zscaler from $180.00 to $170.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $216.03.

Zscaler 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.

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