Balboa Wealth Partners Lowers Stock Holdings in Zscaler, Inc. $ZS

Key Points

• Balboa Wealth Partners significantly reduced its stake in Zscaler, Inc. by 97%, ending with only 903 shares after selling 29,097 shares in the second quarter.
• Despite the reduction from Balboa, other institutional investors like T. Rowe Price and Goldman Sachs have increased their holdings in Zscaler, indicating continued interest in the company.
• Zscaler's stock has a current one-year trading range with a low of $164.78 and a high of $319.89, with recent earnings exceeding analyst expectations.

Balboa Wealth Partners lowered its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 97.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 903 shares of the company's stock after selling 29,097 shares during the quarter. Balboa Wealth Partners' holdings in Zscaler were worth $283,000 at the end of the most recent reporting period.

A number of other hedge funds also recently bought and sold shares of ZS. T. Rowe Price Investment Management Inc. purchased a new position in Zscaler during the first quarter worth approximately $516,622,000. Nuveen LLC purchased a new position in Zscaler during the first quarter worth approximately $153,340,000. Goldman Sachs Group Inc. boosted its position in Zscaler by 23.4% during the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock worth $604,831,000 after purchasing an additional 578,883 shares in the last quarter. Woodline Partners LP purchased a new position in Zscaler during the first quarter worth approximately $70,340,000. Finally, Vanguard Group Inc. boosted its position in Zscaler by 3.1% during the first quarter. Vanguard Group Inc. now owns 9,890,506 shares of the company's stock worth $1,962,474,000 after purchasing an additional 294,034 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Stock Performance

Shares of Zscaler stock opened at $305.90 on Tuesday. Zscaler, Inc. has a one year low of $164.78 and a one year high of $319.89. The company has a market cap of $48.42 billion, a price-to-earnings ratio of -1,132.96 and a beta of 1.06. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. The business's 50 day moving average price is $287.31 and its 200 day moving average price is $272.28.

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

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on ZS shares. Weiss Ratings restated a "sell (d-)" rating on shares of Zscaler in a research report on Wednesday, October 8th. Scotiabank decreased their target price on Zscaler from $360.00 to $334.00 and set a "sector outperform" rating on the stock in a research report on Wednesday, September 3rd. B. Riley started coverage on Zscaler in a research report on Tuesday, August 26th. They issued a "neutral" rating and a $275.00 target price on the stock. JMP Securities restated a "market outperform" rating and issued a $355.00 target price on shares of Zscaler in a research report on Wednesday, September 3rd. Finally, Stifel Nicolaus raised their target price on Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $307.43.

Insiders Place Their Bets

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the firm's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total transaction of $804,205.50. Following the completion of the sale, the chief executive officer owned 350,700 shares of the company's stock, valued at $98,441,490. This trade represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Adam Geller sold 10,464 shares of the firm's 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 directly owned 43,478 shares of the company's stock, valued at approximately $12,358,621.50. This trade represents a 19.40% decrease in their position. The disclosure for this sale can be found here. Insiders sold 39,884 shares of company stock worth $11,406,825 in the last three months. 18.10% of the stock is owned by 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.

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