Bank of New York Mellon Corp Purchases 36,420 Shares of Zscaler, Inc. $ZS

Key Points

• Bank of New York Mellon increased its Zscaler stake by 7.9% in the first quarter, buying 36,420 more shares and bringing its total holding to 494,734 shares worth about $69.4 million.
• Zscaler shares fell 4.3% to open at $142.26, even as the stock remains below its 52-week high of $336.99 and above its low of $114.63.
• The company reported better-than-expected quarterly results with EPS of $1.08 on revenue of $850.48 million, and analysts currently have a consensus Moderate Buy rating with an average target price of $214.21.

Bank of New York Mellon Corp raised its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 7.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 494,734 shares of the company's stock after buying an additional 36,420 shares during the quarter. Bank of New York Mellon Corp owned about 0.31% of Zscaler worth $69,406,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Qsemble Capital Management LP boosted its position in shares of Zscaler by 105.5% in the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock worth $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Oxbow Advisors LLC bought a new position in shares of Zscaler during the fourth quarter valued at $2,939,000. J. Safra Sarasin Holding AG raised its position in shares of Zscaler by 94.7% in the 4th quarter. J. Safra Sarasin Holding AG now owns 63,627 shares of the company's stock worth $14,311,000 after purchasing an additional 30,952 shares during the last quarter. Leonteq Securities AG bought a new position in Zscaler in the 4th quarter worth about $4,571,000. Finally, Norges Bank purchased a new stake in Zscaler during the 4th quarter valued at about $79,762,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Stock Down 4.3%

ZS stock opened at $142.26 on Thursday. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99. 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 cap of $23.00 billion, a P/E ratio of -296.37, a PEG ratio of 85.23 and a beta of 0.96. The business's 50-day moving average price is $143.71 and its 200-day moving average price is $157.52.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same period in the previous year, the company posted $0.84 EPS. The firm's revenue 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. On average, equities research analysts forecast that Zscaler, Inc. will post 0.12 EPS for the current year.

Insider Activity

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the transaction, the insider directly owned 69,366 shares of the company's stock, valued at $8,769,943.38. This represents a 4.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 15,766 shares of company stock valued at $1,978,587. 17.20% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on ZS. Needham & Company LLC reaffirmed a "buy" rating and issued a $180.00 target price on shares of Zscaler in a report on Wednesday, June 10th. The Goldman Sachs Group restated a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a report on Wednesday, May 27th. Wedbush reissued an "outperform" rating and issued a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. JPMorgan Chase & Co. decreased their price target on Zscaler from $250.00 to $205.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Zscaler in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $214.21.

Zscaler 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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