Bouvel Investment Partners LLC Cuts Holdings in Zscaler, Inc. $ZS

Key Points

• Bouvel Investment Partners LLC reduced its holdings in Zscaler, Inc. by 58.0% in the second quarter, retaining only 7,275 shares valued at approximately $2.28 million.
• Zscaler's recent earnings report showed a 21.3% revenue increase year-over-year, with earnings per share of $0.89, exceeding expectations of $0.80.
• A number of analysts have raised their price targets for Zscaler, with the average target now at $307.00, reflecting a strong positive outlook from the investment community.

Bouvel Investment Partners LLC lessened its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 58.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 7,275 shares of the company's stock after selling 10,031 shares during the period. Bouvel Investment Partners LLC's holdings in Zscaler were worth $2,284,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Kozak & Associates Inc. purchased a new position in Zscaler in the 2nd quarter worth approximately $35,000. ORG Partners LLC grew its stake in Zscaler by 284.8% in the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after buying an additional 94 shares in the last quarter. SVB Wealth LLC purchased a new position in Zscaler in the 1st quarter worth approximately $26,000. Goodman Advisory Group LLC purchased a new position in Zscaler in the 1st quarter worth approximately $29,000. Finally, N.E.W. Advisory Services LLC purchased a new position in Zscaler in the 1st quarter worth approximately $29,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Trading Up 1.1%

Shares of ZS opened at $294.27 on Friday. The stock has a market capitalization of $46.58 billion, a P/E ratio of -1,089.89 and a beta of 1.05. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95. The firm has a fifty day simple moving average of $280.39 and a two-hundred day simple moving average of $257.29. Zscaler, Inc. has a twelve month low of $164.78 and a twelve month high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.09. The business had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The firm's revenue for the quarter was up 21.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.88 EPS. 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 anticipate that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Activity

In other Zscaler news, EVP Raj Judge sold 4,524 shares of the stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $1,269,886.80. Following the completion of the sale, the executive vice president owned 73,832 shares of the company's stock, valued at $20,724,642.40. This represents a 5.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,865 shares of the company'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 transaction, 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 disclosure for this sale can be found here. Over the last 90 days, insiders sold 32,878 shares of company stock worth $9,266,002. 18.10% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on ZS shares. Stifel Nicolaus upped their price objective on shares of Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a research note on Wednesday, September 3rd. JPMorgan Chase & Co. upped their price objective on shares of Zscaler from $348.00 to $351.00 and gave the company an "overweight" rating in a research note on Wednesday, September 3rd. Bank of America upped their price objective on shares of Zscaler from $285.00 to $340.00 and gave the company a "buy" rating in a research note on Monday, June 9th. Oppenheimer upped their price objective on shares of Zscaler from $290.00 to $345.00 and gave the company an "outperform" rating in a research note on Friday, June 6th. Finally, Wells Fargo & Company raised shares of Zscaler from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $260.00 to $385.00 in a research note on Friday, June 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $307.00.

Zscaler Company Profile

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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