Bank of America Corp DE Buys 239,326 Shares of Zscaler, Inc. $ZS

Key Points

• Bank of America increased its Zscaler stake by 44.3% in the first quarter, purchasing 239,326 additional shares for a total holding of 779,245 shares valued at approximately $109.3 million.
• Zscaler reported quarterly revenue of $850.48 million, up 25.4% year over year, and adjusted EPS of $1.08, exceeding analyst expectations. Institutional investors collectively own 46.45% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $214.21, although several firms recently lowered their targets. Recent insider sales were reportedly made to cover tax obligations tied to equity awards.

Bank of America Corp DE raised its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 44.3% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 779,245 shares of the company's stock after buying an additional 239,326 shares during the period. Bank of America Corp DE owned about 0.48% of Zscaler worth $109,320,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Binnacle Investments Inc purchased a new stake in Zscaler during the third quarter valued at about $25,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler in the 4th quarter worth about $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Zscaler in the 4th quarter worth about $30,000. Mcguire Capital Advisors Inc. bought a new position in shares of Zscaler during the 4th quarter valued at about $32,000. Finally, Family CFO Inc bought a new position in shares of Zscaler during the 4th quarter valued at about $34,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Stock Performance

NASDAQ:ZS opened at $168.68 on Friday. The firm has a market cap of $27.28 billion, a PE ratio of -351.41, a price-to-earnings-growth ratio of 58.52 and a beta of 0.94. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The business has a 50 day moving average price of $141.50 and a 200-day moving average price of $152.50.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same period in the previous year, the firm earned $0.84 earnings per share. The firm's revenue for the quarter was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities research analysts predict that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Analyst Ratings Changes

A number of research firms recently weighed in on ZS. Morgan Stanley dropped their target price on Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 27th. Citizens Jmp reduced their price target on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. JPMorgan Chase & Co. lowered their price objective on shares of Zscaler from $250.00 to $205.00 and set an "overweight" rating for the company in a report on Wednesday, May 27th. B. Riley Financial cut their price objective on shares of Zscaler from $225.00 to $215.00 and set a "buy" rating for the company in a research note on Wednesday, May 27th. Finally, The Goldman Sachs Group reaffirmed a "neutral" rating and set a $179.00 target price on shares of Zscaler in a report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Zscaler has a consensus rating of "Moderate Buy" and an average target price of $214.21.

Insider Activity

In other news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the sale, the insider directly owned 69,366 shares in the company, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 16,269 shares of company stock worth $2,052,589 over the last ninety days. 17.20% of the stock is owned by 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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