Caisse de depot et placement du Quebec Invests $31.14 Million in Zscaler, Inc. $ZS

Key Points

• Caisse de dépôt et placement du Québec acquired 220,620 Zscaler shares worth approximately $31.14 million, representing a 0.14% stake. Institutional investors and hedge funds collectively own 46.45% of the company.
• Zscaler reported quarterly revenue of $850.48 million, up 25.4% year over year and above analyst estimates, while adjusted earnings of $1.08 per share beat expectations by $0.07.
• Analysts remain broadly positive, with 34 Buy ratings, six Holds and one Sell; the stock has a consensus “Moderate Buy” rating and a $216.18 average price target.

Caisse de depot et placement du Quebec bought a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The fund bought 220,620 shares of the company's stock, valued at approximately $31,141,000. Caisse de depot et placement du Quebec owned 0.14% of Zscaler at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in ZS. BlackRock Inc. acquired a new position in shares of Zscaler in the second quarter worth about $1,396,028,000. First Trust Advisors LP boosted its stake in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after acquiring an additional 935,781 shares in the last quarter. Price T Rowe Associates Inc. MD grew its position in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after acquiring an additional 777,414 shares during the period. State Street Corp grew its position in shares of Zscaler by 3.4% during the 4th quarter. State Street Corp now owns 2,337,604 shares of the company's stock valued at $525,774,000 after acquiring an additional 77,800 shares during the period. Finally, Geode Capital Management LLC increased its stake in shares of Zscaler by 5.0% in the 4th quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company's stock valued at $464,783,000 after purchasing an additional 98,140 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Price Performance

NASDAQ:ZS opened at $184.23 on Friday. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a 50 day moving average of $156.19 and a two-hundred day moving average of $150.37. 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 cap of $29.79 billion, a P/E ratio of -383.80, a price-to-earnings-growth ratio of 110.24 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the business posted $0.84 earnings per share. The business's quarterly revenue was up 25.4% compared to the same quarter last year. On average, analysts expect that Zscaler, Inc. will post 0.13 earnings per share for the current fiscal year.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: J.P. Morgan initiated or reiterated a Buy rating on Zscaler and raised its price target to $215 from $205, suggesting meaningful upside and confidence in the company’s long-term cloud-security growth. Zscaler gets a Buy from J.P. Morgan
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing for research into self-improving artificial-intelligence models. The investment could strengthen Zscaler’s exposure to enterprise AI, although it is unlikely to materially affect near-term earnings. Deep Cogito raises $43 million Series A
• Positive Sentiment: A broader cybersecurity re-rating has lifted previously lagging stocks, with Zscaler benefiting from increased investor interest in security software and AI-related growth. The move was accompanied by a strong gain in the First Trust NASDAQ Cybersecurity ETF. Cybersecurity re-rating reaches lagging stocks
• Neutral Sentiment: Zscaler is expected to report quarterly results on Thursday. Its prior quarter featured a revenue and adjusted EPS beat, with revenue up 25.4% year over year, but investors will look for sustained billings, guidance, and AI-driven demand before extending the recent rally. Zscaler expected to announce quarterly earnings
• Neutral Sentiment: The broader market may remain sensitive to next week’s August jobs report and its implications for Federal Reserve policy, interest rates, and valuation multiples for high-growth technology stocks. August jobs report takes center stage
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only about 1.2%, making it a limited sentiment concern rather than a fundamental warning. Zscaler CFO sells stock

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on ZS shares. Berenberg Bank set a $200.00 price target on Zscaler in a research report on Thursday, May 28th. BMO Capital Markets reduced their target price on Zscaler from $210.00 to $178.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Stifel Nicolaus upped their target price on Zscaler from $175.00 to $200.00 and gave the stock a "buy" rating in a research note on Wednesday, August 19th. Cantor Fitzgerald reiterated an "overweight" rating and set a $225.00 target price on shares of Zscaler in a research report on Wednesday, August 19th. Finally, Piper Sandler dropped their price target on shares of Zscaler from $185.00 to $160.00 and set a "neutral" rating on the stock 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 data from MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus target price of $216.18.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 3,146 shares of the stock in a transaction dated Tuesday, June 16th. The shares were 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. This represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 transaction of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. 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. Insiders sold a total of 16,772 shares of company stock valued at $2,139,799 in the last 90 days. 17.20% of the stock is owned by company insiders.

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.

Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source