AE Wealth Management LLC Invests $377,000 in Zscaler, Inc. (NASDAQ:ZS)

Key Points

• AE Wealth Management LLC has acquired a new position in Zscaler, Inc., purchasing 1,902 shares valued at approximately $377,000.
• Insider selling was notable, with Director Andrew William Fraser Brown and major shareholder Ajay Mangal selling substantial amounts of stock, indicating potential shifts in ownership dynamics.
• Analysts remain optimistic, with multiple firms raising their price targets, leading to an average rating of "Moderate Buy" and a consensus target price of $296.82.

AE Wealth Management LLC bought a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,902 shares of the company's stock, valued at approximately $377,000.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Corebridge Financial Inc. boosted its position in shares of Zscaler by 0.5% during the 4th quarter. Corebridge Financial Inc. now owns 11,695 shares of the company's stock worth $2,110,000 after acquiring an additional 54 shares in the last quarter. Norges Bank acquired a new stake in shares of Zscaler during the 4th quarter worth approximately $32,158,000. Brown Brothers Harriman & Co. lifted its stake in Zscaler by 315.2% in the 4th quarter. Brown Brothers Harriman & Co. now owns 685 shares of the company's stock valued at $124,000 after purchasing an additional 520 shares during the last quarter. Allstate Corp bought a new position in Zscaler in the 4th quarter valued at approximately $480,000. Finally, Alliancebernstein L.P. lifted its stake in Zscaler by 23.4% in the 4th quarter. Alliancebernstein L.P. now owns 71,735 shares of the company's stock valued at $12,942,000 after purchasing an additional 13,597 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on ZS. BNP Paribas raised shares of Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price objective for the company in a research note on Monday, April 28th. Guggenheim reaffirmed a "neutral" rating on shares of Zscaler in a research note on Friday, May 30th. Barclays raised their price target on shares of Zscaler from $275.00 to $290.00 and gave the company an "overweight" rating in a research note on Friday, May 30th. Cantor Fitzgerald raised their price target on shares of Zscaler from $290.00 to $340.00 and gave the company an "overweight" rating in a research note on Wednesday, June 11th. Finally, Piper Sandler reaffirmed a "neutral" rating and set a $260.00 price target (up previously from $235.00) on shares of Zscaler in a research note on Friday, May 30th. Seven research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Stock Down 0.8%

NASDAQ:ZS traded down $2.17 during mid-day trading on Thursday, hitting $285.56. 1,774,524 shares of the stock traded hands, compared to its average volume of 1,569,447. The business's 50-day moving average price is $294.68 and its 200 day moving average price is $237.56. The company has a market cap of $44.46 billion, a PE ratio of -1,098.31 and a beta of 1.11. Zscaler, Inc. has a 12-month low of $153.45 and a 12-month high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The business had revenue of $678.03 million during the quarter, compared to analysts' expectations of $667.13 million. During the same quarter in the previous year, the company earned $0.88 EPS. The business's quarterly revenue was up 22.6% compared to the same quarter last year. Analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Ajay Mangal sold 120,000 shares of the business's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the sale, the insider directly owned 2,550,210 shares in the company, valued at approximately $767,332,686.90. The trade was a 4.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Syam Nair sold 28,947 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $250.00, for a total transaction of $7,236,750.00. Following the completion of the sale, the insider owned 110,566 shares of the company's stock, valued at approximately $27,641,500. The trade was a 20.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 200,793 shares of company stock worth $58,752,794. 18.10% of the stock is owned by corporate insiders.

Zscaler Profile

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.