Cibc World Market Inc. Purchases New Position in Zscaler, Inc. $ZS

Key Points

• CIBC World Market Inc. bought 10,955 Zscaler shares worth approximately $1.55 million in the second quarter. Several other institutions also initiated positions, while institutional investors collectively own 46.45% of Zscaler.
• Analyst sentiment remains favorable: 34 analysts rate Zscaler a Buy, with a consensus “Moderate Buy” rating and an average price target of $216.18. Recent targets include $220 from Wedbush and $200 from Rosenblatt Securities.
• Zscaler’s latest quarterly results exceeded expectations, with adjusted EPS of $1.08 and revenue of $850.48 million, up 25.4% year over year. However, upcoming earnings and valuation remain key risks, while insiders have sold shares under pre-arranged trading plans.

Cibc World Market Inc. acquired a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 10,955 shares of the company's stock, valued at approximately $1,546,000.

A number of other institutional investors have also recently bought and sold shares of ZS. OMERS ADMINISTRATION Corp acquired a new stake in Zscaler in the second quarter worth $763,000. Osmosis Investment Management UK Ltd acquired a new position in shares of Zscaler in the 2nd quarter valued at $245,000. Sanctuary Advisors LLC acquired a new position in shares of Zscaler in the 2nd quarter valued at $1,977,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Zscaler in the 2nd quarter valued at $102,271,000. Finally, Meiji Yasuda Asset Management Co Ltd. bought a new stake in shares of Zscaler in the 2nd quarter valued at $244,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on ZS shares. Wedbush reissued an "outperform" rating and issued a $220.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Needham & Company LLC reiterated a "buy" rating and issued a $180.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $179.00 target price on shares of Zscaler in a report on Wednesday, May 27th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $200.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $216.18.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: A broad cybersecurity-sector re-rating lifted Zscaler and other previously underperforming security stocks. The First Trust NASDAQ Cybersecurity ETF also advanced strongly, suggesting investors are buying the group rather than focusing only on ZS. Cybersecurity sector re-rating
• Positive Sentiment: J.P. Morgan assigned Zscaler a “buy” or “overweight” view and raised its price target from $205 to $215. The higher target reinforces expectations for additional upside and was a direct bullish catalyst. J.P. Morgan upgrades Zscaler
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment provides exposure to a developer of self-improving AI models and supports Zscaler’s broader enterprise-AI positioning, although it is unlikely to materially affect near-term earnings. Deep Cogito financing
• Neutral Sentiment: Investors are awaiting Zscaler’s quarterly earnings announcement. The company previously exceeded consensus estimates for earnings and revenue, but the upcoming report must validate expectations for continued growth in cloud security and AI-related demand. Zscaler earnings announcement
• Negative Sentiment: Evercore placed Zscaler on its tactical “underperform” list ahead of results, indicating that valuation and elevated growth expectations could create downside risk if the earnings outlook disappoints. Evercore underperform view
• 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 about 1.2% and is a modest negative signal, though the planned nature and small size limit its significance. Zscaler CFO stock sale

Insider Buying and Selling

In other Zscaler news, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction on 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 transaction, the insider directly owned 42,314 shares of the company's stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 503 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total value of $87,210.14. Following the sale, the chief financial officer owned 40,895 shares of the company's stock, valued at approximately $7,090,375.10. The trade was a 1.22% 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. Over the last three months, insiders sold 16,772 shares of company stock worth $2,139,799. 17.20% of the stock is owned by corporate insiders.

Zscaler Stock Performance

NASDAQ ZS opened at $187.30 on Friday. The firm has a 50-day moving average price of $155.00 and a two-hundred day moving average price of $150.13. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $30.29 billion, a P/E ratio of -390.20, a P/E/G ratio of 100.24 and a beta of 0.94. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72.

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

About Zscaler

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.

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