Empowered Funds LLC Sells 34,068 Shares of Zscaler, Inc. $ZS

Key Points

• Empowered Funds LLC cut its Zscaler stake by 91.8%, selling 34,068 shares and retaining 3,045 shares valued at approximately $427,000. Institutional investors own 46.45% of the company.
• Analyst sentiment remains favorable, with 34 Buy ratings, six Holds and one Sell; Zscaler has a consensus rating of “Moderate Buy” and an average price target of $214.21.
• Zscaler reported quarterly revenue of $850.48 million, up 25.4% year over year, and adjusted EPS of $1.08, exceeding estimates. Shares opened at $178.55, while insiders sold 16,269 shares worth about $2.05 million over the past three months.

Empowered Funds LLC lowered its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 91.8% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,045 shares of the company's stock after selling 34,068 shares during the quarter. Empowered Funds LLC's holdings in Zscaler were worth $427,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of ZS. Binnacle Investments Inc bought a new stake in Zscaler during the 3rd quarter valued at approximately $25,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler in the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler in the 4th quarter worth approximately $30,000. Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler in the 4th quarter valued at approximately $32,000. Finally, Family CFO Inc bought a new stake in shares of Zscaler during the fourth quarter valued at approximately $34,000. 46.45% of the stock is owned by institutional investors.

Analysts Set New Price Targets

ZS has been the subject of a number of research reports. Stifel Nicolaus decreased their price objective on Zscaler from $180.00 to $175.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. The Goldman Sachs Group restated a "neutral" rating and set a $179.00 target price on shares of Zscaler in a report on Wednesday, May 27th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Zscaler in a research note on Tuesday, June 9th. Wells Fargo & Company lowered their price target on shares of Zscaler from $210.00 to $180.00 and set an "overweight" rating for the company in a research report on Thursday, May 28th. Finally, Morgan Stanley lowered their price target on shares of Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and an average price target of $214.21.

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction dated 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 sale, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 16,269 shares of company stock valued at $2,052,589. 17.20% of the stock is currently owned by corporate insiders.

Zscaler Price Performance

Shares of NASDAQ ZS opened at $178.55 on Wednesday. The firm has a market cap of $28.87 billion, a P/E ratio of -371.97, a PEG ratio of 63.59 and a beta of 0.94. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a 50 day moving average of $142.61 and a 200 day moving average of $151.65.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same period last year, the business posted $0.84 EPS. The company's revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, research analysts expect that Zscaler, Inc. will post 0.12 EPS for the current fiscal year.

Zscaler Company Profile

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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