Bank of New York Mellon Corp Takes $66.41 Million Position in Zscaler, Inc. $ZS

Bank of New York Mellon Corp bought a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund bought 470,467 shares of the company's stock, valued at approximately $66,406,000. Bank of New York Mellon Corp owned 0.29% of Zscaler at the end of the most recent reporting period.

Several other institutional investors also recently added to or reduced their stakes in the stock. Binnacle Investments Inc purchased a new position in Zscaler in the third quarter valued at about $25,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler during the 4th quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $32,000. Finally, Western Wealth Management LLC bought a new stake in shares of Zscaler in the 1st quarter worth approximately $33,000. Institutional investors own 46.45% of the company's stock.

Zscaler Stock Performance

NASDAQ ZS opened at $170.31 on Thursday. The company's 50 day simple moving average is $153.75 and its two-hundred day simple moving average is $149.99. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99. The stock has a market capitalization of $27.54 billion, a PE ratio of -354.81, a P/E/G ratio of 99.13 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same period in the previous year, the business earned $0.84 EPS. The business's revenue for the quarter was up 25.4% on a year-over-year basis. Analysts predict that Zscaler, Inc. will post 0.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Jagtar Singh Chaudhry sold 2,878 shares of Zscaler stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the business's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $124.22, for a total value of $372,660.00. Following the transaction, the chief financial officer directly owned 41,901 shares of the company's stock, valued at $5,204,942.22. The trade was a 6.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock valued at $2,139,799 over the last 90 days. 17.20% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. TD Cowen increased their price objective on Zscaler from $180.00 to $200.00 and gave the company a "buy" rating in a report on Monday, August 17th. Royal Bank Of Canada restated an "outperform" rating and issued a $200.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Guggenheim reaffirmed a "buy" rating and set a $214.00 price target on shares of Zscaler in a research report on Monday. Truist Financial set a $210.00 price target on Zscaler in a research note on Wednesday, May 27th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $180.00 price objective on shares of Zscaler in a 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 issued a Sell rating to the stock. According to data from MarketBeat.com, Zscaler currently has an average rating of "Moderate Buy" and an average price target of $216.18.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: JPMorgan raised its price target on Zscaler from $205 to $215 and maintained an “overweight” rating, implying substantial upside from recent trading levels. Benzinga report
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment gives Zscaler exposure to a startup developing reinforcement-learning and self-improving AI models, potentially supporting the company’s broader AI and cybersecurity strategy. Deep Cogito funding announcement
• Positive Sentiment: Guggenheim reaffirmed its “Buy” rating, adding another supportive analyst opinion as investors assess Zscaler’s growth prospects. Guggenheim rating report
• Neutral Sentiment: Analyst sentiment is mixed ahead of earnings. Reports highlight strong AI-driven expectations across cybersecurity stocks, increasing the potential for volatility if Zscaler’s fiscal fourth-quarter results or outlook fall short. Cybersecurity stocks earnings report
• Negative Sentiment: Evercore added Zscaler to its tactical underperform list ahead of the fiscal fourth-quarter report, signaling concern that the stock’s valuation and elevated expectations may limit near-term upside. Evercore tactical underperform report
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 trading plan. The transaction was small relative to his remaining holdings and appears more routine than an indication of changing company fundamentals, but it can still attract modest selling scrutiny. SEC insider trading filing

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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