Zscaler, Inc. $ZS is Abacus FCF Advisors LLC's 7th Largest Position

Key Points

• Abacus FCF Advisors LLC reduced its holdings in Zscaler, Inc. by 16.5% during the 2nd quarter, now owning 61,567 shares valued at approximately $19.3 million.
• Zscaler reported earnings of $0.89 EPS for the recent quarter, surpassing analysts' expectations, and achieved a revenue growth of 21.3% year-over-year.
• Several brokerages have raised their price targets for Zscaler, with the average target now at $307.00, indicating a favorable outlook among analysts.

Abacus FCF Advisors LLC cut its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 16.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 61,567 shares of the company's stock after selling 12,205 shares during the quarter. Zscaler comprises 2.7% of Abacus FCF Advisors LLC's investment portfolio, making the stock its 7th largest holding. Abacus FCF Advisors LLC's holdings in Zscaler were worth $19,328,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of ZS. Focus Partners Advisor Solutions LLC bought a new stake in shares of Zscaler during the fourth quarter valued at approximately $230,000. JT Stratford LLC acquired a new position in shares of Zscaler during the fourth quarter valued at $242,000. Vise Technologies Inc. acquired a new position in shares of Zscaler during the fourth quarter valued at $364,000. Fourth Dimension Wealth LLC acquired a new position in Zscaler in the fourth quarter valued at about $121,000. Finally, Sunbelt Securities Inc. lifted its stake in Zscaler by 83.8% in the fourth quarter. Sunbelt Securities Inc. now owns 250 shares of the company's stock valued at $46,000 after buying an additional 114 shares during the period. 46.45% of the stock is currently owned by institutional investors.

Zscaler Price Performance

NASDAQ ZS traded down $0.96 during midday trading on Tuesday, hitting $290.61. The company had a trading volume of 475,419 shares, compared to its average volume of 2,121,544. The company has a market capitalization of $46.00 billion, a PE ratio of -1,073.93 and a beta of 1.05. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95. The firm has a 50-day moving average price of $280.39 and a 200-day moving average price of $258.25. Zscaler, Inc. has a twelve month low of $164.78 and a twelve month high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.09. The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The company's revenue for the quarter was up 21.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Analyst Ratings Changes

ZS has been the subject of several recent analyst reports. Needham & Company LLC restated a "buy" rating and issued a $350.00 price target on shares of Zscaler in a report on Wednesday, September 3rd. Truist Financial restated a "buy" rating and issued a $300.00 price target (up from $260.00) on shares of Zscaler in a report on Friday, May 30th. Barclays increased their price target on Zscaler from $300.00 to $320.00 and gave the stock an "overweight" rating in a report on Wednesday, September 3rd. Stifel Nicolaus increased their price target on Zscaler from $295.00 to $330.00 and gave the stock a "buy" rating in a report on Wednesday, September 3rd. Finally, Wells Fargo & Company upgraded Zscaler from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $260.00 to $385.00 in a report on Friday, June 13th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Zscaler has a consensus rating of "Moderate Buy" and an average target price of $307.00.

Insiders Place Their Bets

In related news, insider Adam Geller sold 10,464 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $284.25, for a total value of $2,974,392.00. Following the sale, the insider owned 43,478 shares in the company, valued at approximately $12,358,621.50. This trade represents a 19.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Raj Judge sold 4,524 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the sale, the executive vice president owned 73,832 shares in the company, valued at $20,724,642.40. The trade was a 5.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 32,878 shares of company stock worth $9,266,002 in the last quarter. 18.10% of the stock is currently owned by company insiders.

About Zscaler

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.