Assenagon Asset Management S.A. Increases Stake in Zscaler, Inc. $ZS

Key Points

• Assenagon Asset Management increased its Zscaler stake by 90.8% in the first quarter, buying 86,315 additional shares and bringing its holdings to 181,356 shares worth about $25.4 million.
• Wall Street remains broadly bullish on Zscaler despite recent target cuts, with 34 Buy ratings, 6 Holds, and 1 Sell; the consensus price target is $213.97 and the stock’s average rating is Moderate Buy.
• Zscaler’s latest quarter showed better-than-expected results, as EPS of $1.08 beat estimates and revenue rose 25.4% year over year to $850.48 million, though insider selling and a legal investigation may add some sentiment pressure.

Assenagon Asset Management S.A. grew its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 90.8% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 181,356 shares of the company's stock after buying an additional 86,315 shares during the period. Assenagon Asset Management S.A. owned 0.11% of Zscaler worth $25,442,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in ZS. Vanguard Group Inc. lifted its stake in Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after purchasing an additional 55,521 shares during the last quarter. Groupama Asset Managment raised its position in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after buying an additional 4,743,787 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Zscaler by 15.9% in the fourth quarter. First Trust Advisors LP now owns 2,582,897 shares of the company's stock valued at $580,945,000 after buying an additional 354,763 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after purchasing an additional 777,414 shares in the last quarter. Finally, State Street Corp grew its holdings in shares of Zscaler by 3.4% in the 4th quarter. State Street Corp now owns 2,337,604 shares of the company's stock worth $525,774,000 after acquiring an additional 77,800 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Wells Fargo & Company reduced their target price on Zscaler from $210.00 to $180.00 and set an "overweight" rating for the company in a report on Thursday, May 28th. BMO Capital Markets dropped their price target on Zscaler from $210.00 to $178.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Needham & Company LLC restated a "buy" rating and set a $180.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Wedbush reiterated an "outperform" rating and issued a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $213.97.

Zscaler Stock Up 6.8%

Zscaler stock opened at $132.26 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 $21.39 billion, a PE ratio of -275.54, a price-to-earnings-growth ratio of 77.40 and a beta of 0.97. The company has a 50 day moving average of $141.59 and a 200-day moving average of $168.93. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued 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 company had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business's quarterly revenue was up 25.4% on a year-over-year basis. During the same period last year, the business earned $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. On average, equities research analysts anticipate that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy, and race data. Article Title
• Positive Sentiment: Zscaler CEO Jay Chaudhry highlighted AI as a major cybersecurity opportunity, reinforcing the company’s positioning in a fast-growing market. Article Title
• Positive Sentiment: Another report said AI could create the biggest cybersecurity opportunity in years, which supports the investment case for Zscaler’s AI-era security platform. Article Title
• Neutral Sentiment: Market commentary noted Zscaler had only a modest post-earnings move, suggesting traders are still assessing the company’s near-term outlook. Article Title
• Neutral Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which may add headline risk but does not by itself confirm wrongdoing. Article Title
• Negative Sentiment: Zscaler CFO Kevin Rubin sold 3,000 shares under a pre-arranged trading plan, which can still weigh on sentiment even though the sale was routine. Article Title

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 3,000 shares of the business's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total transaction of $372,660.00. Following the sale, the chief financial officer owned 41,901 shares in the company, valued at $5,204,942.22. The trade was a 6.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the sale, the chief executive officer directly owned 343,038 shares in the company, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 15,644 shares of company stock worth $1,960,287 in the last 90 days. 17.20% of the stock is currently owned by company insiders.

Zscaler Company 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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