Corient Private Wealth LP Makes New Investment in Zscaler, Inc. $ZS

Key Points

• Corient Private Wealth LP purchased 8,856 Zscaler shares worth approximately $1.25 million in the second quarter. Institutional investors own about 46.45% of the company.
• Zscaler beat quarterly expectations with adjusted EPS of $1.19 and revenue of $898.2 million, up 24.9% year over year. However, fiscal 2027 revenue growth is expected to slow to roughly 16.6%–17.5%, while free cash flow fell sharply and the company announced a restructuring affecting about 3% of its workforce.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $217.08, compared with shares opening at $169.80.

Corient Private Wealth LP purchased a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 8,856 shares of the company's stock, valued at approximately $1,250,000.

Other hedge funds have also added to or reduced their stakes in the company. Binnacle Investments Inc purchased a new stake in Zscaler during the 3rd quarter valued at about $25,000. AlphaCentric Advisors LLC purchased a new position in Zscaler in the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler in the 4th quarter worth approximately $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler in the fourth quarter valued at approximately $32,000. Finally, Strive Financial Group LLC bought a new stake in Zscaler in the fourth quarter valued at approximately $39,000. 46.45% of the stock is owned by institutional investors.

Zscaler Stock Down 4.5%

Shares of NASDAQ ZS opened at $169.80 on Friday. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99. The firm has a 50-day simple moving average of $161.26 and a two-hundred day simple moving average of $150.53. The company has a market cap of $27.46 billion, a P/E ratio of -435.38, a PEG ratio of 104.65 and a beta of 0.95. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.29%. The company had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. During the same period last year, the firm earned $0.89 earnings per share. Zscaler's revenue was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Research analysts anticipate that Zscaler, Inc. will post 0.13 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts have commented on the company. Robert W. Baird upped their price target on Zscaler from $220.00 to $230.00 and gave the company an "outperform" rating in a research report on Friday. FBN Securities reissued an "outperform" rating and set a $175.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Royal Bank Of Canada raised their target price on shares of Zscaler from $200.00 to $210.00 and gave the stock an "outperform" rating in a research report on Friday. Evercore set a $155.00 target price on shares of Zscaler and gave the company an "in-line" rating in a research note on Wednesday, May 27th. Finally, BMO Capital Markets boosted their price target on shares of Zscaler from $178.00 to $200.00 and gave the company an "outperform" rating in a research report on Friday. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus target price of $217.08.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 3,146 shares of the business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the transaction, the insider directly owned 69,366 shares of the company's stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction on Monday, June 22nd. The shares were 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 in the company, valued at $5,187,696.40. This trade represents a 6.24% decrease in their position. 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 valued at $2,139,799. Insiders own 17.20% of the company's stock.

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.

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