Charles Schwab Investment Management Inc. Increases Stake in Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Zscaler, Inc. by 12.4%, owning 424,547 shares valued at approximately $84.24 million after acquiring an additional 46,822 shares.
• Insider Adam Geller sold 3,662 shares for over $1.12 million, while another major shareholder, Ajay Mangal, sold 120,000 shares for approximately $36.1 million, indicating significant insider trading activity.
• An array of analysts have set new price targets for Zscaler, with Scotiabank raising its target from $310 to **$360**, reflecting positive sentiment in the market despite the company's negative return on equity.

Charles Schwab Investment Management Inc. boosted its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 12.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 424,547 shares of the company's stock after acquiring an additional 46,822 shares during the quarter. Charles Schwab Investment Management Inc. owned 0.27% of Zscaler worth $84,239,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. ORG Partners LLC raised its position in Zscaler by 284.8% during the first quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after acquiring an additional 94 shares in the last quarter. Goodman Advisory Group LLC purchased a new position in Zscaler during the first quarter valued at approximately $29,000. N.E.W. Advisory Services LLC purchased a new stake in shares of Zscaler in the first quarter valued at approximately $29,000. CVA Family Office LLC increased its position in shares of Zscaler by 120.3% in the first quarter. CVA Family Office LLC now owns 152 shares of the company's stock valued at $30,000 after buying an additional 83 shares in the last quarter. Finally, Colonial Trust Co SC purchased a new stake in shares of Zscaler in the fourth quarter valued at approximately $28,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, insider Adam Geller sold 3,662 shares of the company's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the completion of the sale, the insider directly owned 46,813 shares of the company's stock, valued at $14,358,483.36. This represents a 7.26% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Ajay Mangal sold 120,000 shares of the company's stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the sale, the insider directly owned 2,550,210 shares of the company's stock, valued at approximately $767,332,686.90. This trade represents a 4.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 200,793 shares of company stock worth $58,752,794. 18.10% of the stock is currently owned by company insiders.

Zscaler Price Performance

Shares of NASDAQ ZS opened at $277.77 on Thursday. The stock's 50-day moving average is $296.18 and its two-hundred day moving average is $243.05. Zscaler, Inc. has a 1-year low of $153.45 and a 1-year high of $318.46. The company has a market cap of $43.25 billion, a price-to-earnings ratio of -1,068.35, a price-to-earnings-growth ratio of 246.94 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The company reported $0.84 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.08. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%. The company had revenue of $678.03 million for the quarter, compared to the consensus estimate of $667.13 million. During the same quarter in the prior year, the business earned $0.88 EPS. Zscaler's revenue was up 22.6% on a year-over-year basis. Equities research analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Scotiabank boosted their price objective on Zscaler from $310.00 to $360.00 and gave the company a "sector outperform" rating in a research report on Friday, June 6th. BTIG Research restated a "buy" rating on shares of Zscaler in a research report on Thursday, July 10th. Piper Sandler reaffirmed a "neutral" rating and issued a $260.00 price target (up from $235.00) on shares of Zscaler in a research note on Friday, May 30th. UBS Group lifted their price target on Zscaler from $315.00 to $365.00 and gave the stock a "buy" rating in a research note on Friday, June 27th. Finally, Wedbush lifted their price target on Zscaler from $240.00 to $300.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. Seven analysts have rated the stock with a hold rating, twenty-nine have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

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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