Arrowstreet Capital Limited Partnership Purchases 137,708 Shares of Zscaler, Inc. $ZS

Key Points

• Arrowstreet Capital increased its Zscaler stake by 47.4% in the fourth quarter, buying 137,708 additional shares and lifting its holdings to 427,992 shares worth about $96.3 million.
• Zscaler’s latest earnings beat expectations, with quarterly EPS of $1.08 versus $1.01 expected and revenue of $850.5 million, up 25.4% year over year. The company also issued Q4 2026 and FY 2026 guidance above current-year analyst estimates.
• Analyst sentiment remains broadly positive, with 34 Buy ratings and a consensus “Moderate Buy” rating, though several firms recently trimmed price targets while maintaining neutral-to-overweight views.

Arrowstreet Capital Limited Partnership increased its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 47.4% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 427,992 shares of the company's stock after buying an additional 137,708 shares during the quarter. Arrowstreet Capital Limited Partnership owned 0.27% of Zscaler worth $96,264,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of ZS. Integrated Wealth Concepts LLC grew its holdings in shares of Zscaler by 19.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock worth $285,000 after buying an additional 239 shares in the last quarter. NewEdge Advisors LLC boosted its position in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock valued at $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC boosted its position in Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock valued at $558,000 after purchasing an additional 238 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Zscaler during the second quarter valued at approximately $252,000. Finally, Jump Financial LLC acquired a new position in Zscaler during the second quarter valued at approximately $3,019,000. 46.45% of the stock is currently owned by institutional investors.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction that occurred 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 directly owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director James A. Beer sold 177 shares of Zscaler stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director directly owned 4,384 shares of the company's stock, valued at approximately $673,075.52. The trade was a 3.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 17.20% of the company's stock.

Zscaler Stock Performance

NASDAQ:ZS opened at $130.42 on Tuesday. The stock has a market cap of $21.09 billion, a P/E ratio of -271.70, a PEG ratio of 80.98 and a beta of 0.97. The stock has a 50 day simple moving average of $142.38 and a 200 day simple moving average of $175.99. 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, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same period last year, the firm posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts anticipate that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Canaccord Genuity Group reissued a "buy" rating and set a $210.00 price target on shares of Zscaler in a research report on Thursday, June 11th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Piper Sandler cut their price objective on Zscaler from $185.00 to $160.00 and set a "neutral" rating for the company in a research report on Wednesday, May 27th. Evercore set a $155.00 price objective on Zscaler and gave the company an "in-line" rating in a research report on Wednesday, May 27th. Finally, KeyCorp raised their price objective on Zscaler from $160.00 to $190.00 and gave the company an "overweight" rating in a research report on Monday, May 18th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $214.33.

About Zscaler

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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