Covestor Ltd Has $490,000 Stock Holdings in Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Covestor Ltd increased its stake in Zscaler, Inc. by 296.5%, acquiring an additional 1,844 shares, totaling 2,466 shares which represents about 0.3% of its overall holdings.
• Analyst ratings for Zscaler show a consensus of "Moderate Buy", with target prices ranging from $260 to $315 following multiple upgrades from various brokerages.
• Despite a 22.6% year-over-year revenue growth, Zscaler reported a negative net margin and is projected to post a -0.1 EPS for the current fiscal year.

Covestor Ltd lifted its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 296.5% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,466 shares of the company's stock after buying an additional 1,844 shares during the period. Zscaler makes up 0.3% of Covestor Ltd's portfolio, making the stock its 26th biggest position. Covestor Ltd's holdings in Zscaler were worth $490,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently modified their holdings of ZS. Envestnet Asset Management Inc. lifted its stake in shares of Zscaler by 96.0% in the fourth quarter. Envestnet Asset Management Inc. now owns 25,579 shares of the company's stock worth $4,615,000 after acquiring an additional 12,531 shares in the last quarter. Cerity Partners LLC raised its stake in Zscaler by 116.4% during the fourth quarter. Cerity Partners LLC now owns 22,860 shares of the company's stock valued at $4,117,000 after buying an additional 12,298 shares in the last quarter. Advisory Services Network LLC raised its stake in Zscaler by 4.5% during the fourth quarter. Advisory Services Network LLC now owns 16,788 shares of the company's stock valued at $3,029,000 after buying an additional 727 shares in the last quarter. APG Asset Management N.V. raised its stake in Zscaler by 411.3% during the fourth quarter. APG Asset Management N.V. now owns 57,357 shares of the company's stock valued at $9,993,000 after buying an additional 46,139 shares in the last quarter. Finally, Raymond James Financial Inc. acquired a new stake in Zscaler during the fourth quarter valued at approximately $28,072,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Stock Performance

NASDAQ ZS traded up $1.48 during trading on Monday, reaching $271.18. 1,280,969 shares of the company traded hands, compared to its average volume of 1,655,501. 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 $42.22 billion, a price-to-earnings ratio of -1,043.00, a P/E/G ratio of 241.80 and a beta of 1.06. The stock's 50 day moving average price is $296.95 and its two-hundred day moving average price is $242.58.

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

Insider Buying and Selling at Zscaler

In related news, insider Syam Nair sold 28,947 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $250.00, for a total value of $7,236,750.00. Following the completion of the sale, the insider owned 110,566 shares of the company's stock, valued at $27,641,500. This trade represents a 20.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Robert Schlossman sold 4,618 shares of the firm's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $300.00, for a total transaction of $1,385,400.00. Following the completion of the sale, the insider directly owned 95,612 shares of the company's stock, valued at approximately $28,683,600. This represents a 4.61% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 200,793 shares of company stock worth $58,752,794 over the last three months. 18.10% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities analysts have recently commented on ZS shares. Morgan Stanley upped their target price on Zscaler from $200.00 to $280.00 and gave the company an "equal weight" rating in a report on Friday, May 30th. Needham & Company LLC upped their target price on Zscaler from $240.00 to $310.00 and gave the company a "buy" rating in a report on Friday, May 30th. Truist Financial reaffirmed a "buy" rating and set a $300.00 target price (up from $260.00) on shares of Zscaler in a report on Friday, May 30th. Susquehanna upped their target price on Zscaler from $245.00 to $320.00 and gave the company a "positive" rating in a report on Friday, May 30th. Finally, Rosenblatt Securities increased their price objective on Zscaler from $235.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Seven research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $296.82.

Zscaler 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.