Clare Market Investments LLC Trims Stake in Zscaler, Inc. $ZS

Key Points

• Clare Market Investments LLC reduced its stake in Zscaler, Inc. by 11.8%, selling 2,846 shares and now holding 21,364 shares valued at approximately $6.7 million.
• Zscaler reported earnings of $0.89 per share, exceeding estimates of $0.80, with a 21.3% year-over-year revenue increase.
• Analysts have set varying price targets for Zscaler, with a consensus target price of $307.00, indicating a generally favorable outlook for the stock.

Clare Market Investments LLC cut its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 11.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 21,364 shares of the company's stock after selling 2,846 shares during the quarter. Zscaler accounts for about 1.5% of Clare Market Investments LLC's holdings, making the stock its 17th biggest holding. Clare Market Investments LLC's holdings in Zscaler were worth $6,707,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of ZS. ORG Partners LLC raised its position in Zscaler by 284.8% in the first quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after purchasing an additional 94 shares during the last quarter. SVB Wealth LLC bought a new position in shares of Zscaler during the first quarter worth about $26,000. Goodman Advisory Group LLC bought a new position in shares of Zscaler during the first quarter worth about $29,000. N.E.W. Advisory Services LLC bought a new position in shares of Zscaler during the first quarter worth about $29,000. Finally, Elequin Capital LP bought a new position in shares of Zscaler during the fourth quarter worth about $30,000. 46.45% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on ZS shares. Wall Street Zen upgraded Zscaler from a "hold" rating to a "buy" rating in a research report on Sunday, September 7th. BMO Capital Markets raised their price objective on Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 3rd. FBN Securities raised Zscaler to a "strong-buy" rating in a research note on Friday, May 30th. Oppenheimer raised their target price on Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a research note on Friday, June 6th. Finally, Canaccord Genuity Group raised their target price on Zscaler from $320.00 to $340.00 and gave the stock a "buy" rating in a research note on Thursday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and an average price target of $307.00.

Zscaler Stock Up 1.1%

Zscaler stock traded up $3.16 during mid-day trading on Friday, reaching $294.27. The stock had a trading volume of 2,049,598 shares, compared to its average volume of 1,883,776. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. Zscaler, Inc. has a fifty-two week low of $164.78 and a fifty-two week high of $318.46. The stock's 50-day simple moving average is $280.39 and its 200-day simple moving average is $257.29. The firm has a market capitalization of $46.58 billion, a PE ratio of -1,089.89 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The firm had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. During the same quarter last year, the firm posted $0.88 earnings per share. The company's revenue for the quarter was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, sell-side analysts forecast that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Jagtar Singh Chaudhry sold 2,865 shares of Zscaler stock in a transaction that occurred 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 transaction, the chief executive officer owned 350,700 shares of the company's stock, valued at $98,441,490. The trade was a 0.81% 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. Also, EVP Raj Judge sold 4,524 shares of Zscaler stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the transaction, the executive vice president directly owned 73,832 shares in the company, valued at approximately $20,724,642.40. The trade was a 5.77% decrease in their position. The disclosure for this sale can be found here. Insiders sold 32,878 shares of company stock worth $9,266,002 in the last ninety days. Corporate insiders own 18.10% of the company's stock.

About Zscaler

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.