Entropy Technologies LP Takes $689,000 Position in Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Entropy Technologies LP has acquired a new stake in Zscaler, Inc., purchasing 3,470 shares valued at approximately $689,000 during the first quarter of 2023.
• Zscaler reported a quarterly earnings of $0.84 EPS, exceeding analysts' estimates, with revenue of $678.03 million, marking a 22.6% increase compared to the previous year.
• Several research firms have updated their price targets for Zscaler, with the average target rising to $296.82 amid a consensus rating of "Moderate Buy" among analysts.

Entropy Technologies LP acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 3,470 shares of the company's stock, valued at approximately $689,000.

Several other large investors have also modified their holdings of the company. Mizuho Markets Americas LLC acquired a new stake in shares of Zscaler in the first quarter valued at approximately $9,911,000. Covestor Ltd raised its stake in shares of Zscaler by 296.5% during the first quarter. Covestor Ltd now owns 2,466 shares of the company's stock worth $490,000 after purchasing an additional 1,844 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Zscaler during the first quarter worth approximately $508,000. Cynosure Group LLC raised its stake in shares of Zscaler by 9.2% during the first quarter. Cynosure Group LLC now owns 1,763 shares of the company's stock worth $350,000 after purchasing an additional 148 shares during the last quarter. Finally, Townsquare Capital LLC raised its stake in shares of Zscaler by 14.7% during the first quarter. Townsquare Capital LLC now owns 5,374 shares of the company's stock worth $1,066,000 after purchasing an additional 687 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Stock Up 1.6%

ZS opened at $275.43 on Wednesday. The firm has a market cap of $42.88 billion, a P/E ratio of -1,059.35, a PEG ratio of 243.13 and a beta of 1.06. Zscaler, Inc. has a 52 week low of $153.45 and a 52 week high of $318.46. The business's fifty day simple moving average is $296.56 and its 200 day simple moving average is $242.81.

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

Insider Transactions at Zscaler

In other Zscaler news, insider Syam Nair sold 4,064 shares of the firm's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total value of $1,234,236.80. Following the sale, the insider directly owned 106,659 shares of the company's stock, valued at approximately $32,392,338.30. This trade represents a 3.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the firm's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total value of $865,241.30. Following the completion of the sale, the chief executive officer directly owned 353,565 shares in the company, valued at approximately $107,377,690.50. The trade was a 0.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 200,793 shares of company stock worth $58,752,794 in the last quarter. 18.10% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have recently commented on ZS. BMO Capital Markets upped their price target on Zscaler from $233.00 to $295.00 and gave the stock an "outperform" rating in a research note on Friday, May 30th. Rosenblatt Securities upped their price target on Zscaler from $235.00 to $315.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. Morgan Stanley upped their price target on Zscaler from $200.00 to $280.00 and gave the stock an "equal weight" rating in a research note on Friday, May 30th. Stephens restated an "overweight" rating and set a $255.00 price target on shares of Zscaler in a research note on Tuesday, May 27th. Finally, Needham & Company LLC upped their price target on Zscaler from $240.00 to $310.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. Seven equities research analysts have rated the stock with a hold rating, twenty-nine have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

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.

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