BlackRock Inc. Acquires Shares of 9,890,384 Zscaler, Inc. $ZS

BlackRock Inc. acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 9,890,384 shares of the company's stock, valued at approximately $1,396,028,000. BlackRock Inc. owned 6.12% of Zscaler at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the stock. Binnacle Investments Inc bought a new position in Zscaler during the 3rd quarter valued at about $25,000. AlphaCentric Advisors LLC acquired a new position in Zscaler in the fourth quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the fourth quarter worth about $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the fourth quarter worth about $32,000. Finally, Western Wealth Management LLC acquired a new stake in shares of Zscaler during the first quarter worth approximately $33,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Trading Down 5.2%

NASDAQ:ZS opened at $174.95 on Friday. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The business's 50-day moving average price is $150.05 and its two-hundred day moving average price is $150.32. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $28.29 billion, a price-to-earnings ratio of -364.47, a PEG ratio of 72.45 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) 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 analyst estimates of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same period in the previous year, the company 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 analysts expect that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Analysts raised price targets: Mizuho increased its target from $185 to $210 and maintained an “outperform” rating, while Stifel lifted its target from $175 to $200 and kept a “buy” rating. Cantor Fitzgerald also reaffirmed its “overweight” rating with a $225 target, reflecting continued confidence in Zscaler’s growth prospects. Benzinga analyst reports Cantor Fitzgerald rating report
• Positive Sentiment: Potential quarterly upside: Oppenheimer expects Zscaler to deliver a slight upside to fiscal fourth-quarter results, suggesting execution remains solid ahead of the company’s upcoming earnings report. Zscaler Likely to Deliver Slight Q4 Upside
• Neutral Sentiment: Recent coverage highlights conflicting analyst views on Zscaler and other technology companies, indicating that valuation and the company’s future growth outlook remain subjects of debate. Conflicting Analyst Sentiments
• Neutral Sentiment: Investor-focused articles discuss how to buy Zscaler stock and whether it is a buy or sell, but provide no new company-specific operating update or immediate catalyst. How to Buy Zscaler Stock Zscaler Stock Buy or Sell
• Negative Sentiment: Market underperformance pressured the stock: Zscaler fell more sharply than the broader market in the latest session. The report did not identify a new fundamental problem, so the move appears driven primarily by market sentiment, profit-taking, or valuation concerns rather than a downgrade. Zscaler Registers a Bigger Fall Than the Market

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business'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 $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. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,269 shares of company stock worth $2,052,589 in the last 90 days. Corporate insiders own 17.20% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on ZS. Stephens reiterated an "overweight" rating and issued a $200.00 target price on shares of Zscaler in a research note on Friday, June 12th. Weiss Ratings restated a "sell (e+)" rating on shares of Zscaler in a research report on Tuesday, June 9th. HC Wainwright raised Zscaler from a "buy" rating to a "buy" rating in a report on Monday, May 18th. Scotiabank cut their price objective on Zscaler from $190.00 to $175.00 and set a "sector outperform" rating for the company in a research report on Wednesday, May 27th. Finally, Truist Financial set a $210.00 price objective on Zscaler in a research note on Wednesday, May 27th. Thirty-four research 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 MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $214.72.

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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