Fisher Asset Management LLC Buys 21,669 Shares of Zscaler, Inc. $ZS

Key Points

• Fisher Asset Management boosted its Zscaler stake by 26.7% in the fourth quarter, adding 21,669 shares to bring its total holdings to 102,968 shares worth about $23.2 million.
• Zscaler recently beat fiscal Q3 expectations, posting adjusted EPS of $1.08 on revenue of $850.5 million, with revenue up 25.4% year over year and ARR growth of 25% to $3.525 billion.
• Despite the earnings beat, the stock sold off after guidance came in a bit light, with investors also reacting to a lower free cash flow outlook and signs of tougher competition in cloud security.

Fisher Asset Management LLC raised its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 26.7% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 102,968 shares of the company's stock after acquiring an additional 21,669 shares during the period. Fisher Asset Management LLC owned about 0.06% of Zscaler worth $23,160,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the company. Bessemer Group Inc. lifted its position in shares of Zscaler by 3.2% during the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company's stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Wedbush Securities Inc. grew its position in Zscaler by 0.7% in the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company's stock worth $1,537,000 after purchasing an additional 34 shares in the last quarter. Goldstream Capital Management Ltd increased its stake in Zscaler by 0.3% in the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after buying an additional 34 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund increased its stake in Zscaler by 1.4% in the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after buying an additional 36 shares during the last quarter. Finally, Advisor OS LLC lifted its position in shares of Zscaler by 4.6% during the 3rd quarter. Advisor OS LLC now owns 879 shares of the company's stock worth $263,000 after buying an additional 39 shares in the last quarter. Institutional investors own 46.45% of the company's stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler beat fiscal Q3 expectations, reporting adjusted EPS of $1.08 versus $1.00 expected and revenue of $850.5 million versus $835.6 million expected, with revenue up 25.4% year over year. Article Title
• Positive Sentiment: The company also highlighted strong operating performance, including 25% ARR growth to $3.525 billion and improved free cash flow of $136 million, reinforcing its AI-cybersecurity growth story. Article Title
• Neutral Sentiment: Investor sentiment had already been supported by broader optimism around cybersecurity stocks and AI-driven security demand heading into the report. Article Title
• Negative Sentiment: Shares sold off after Zscaler’s Q4 revenue outlook came in slightly below Wall Street expectations, suggesting tougher competition and more cautious enterprise spending on cloud security. Article Title
• Negative Sentiment: Analysts and headlines also pointed to a lower free cash flow outlook and “mixed guidance” as the main reasons the stock gave back gains despite the earnings beat. Article Title

Zscaler Stock Performance

NASDAQ:ZS opened at $184.60 on Wednesday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The business has a fifty day simple moving average of $145.75 and a two-hundred day simple moving average of $192.65. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99. The company has a market capitalization of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.60 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insider Transactions at Zscaler

In other news, CEO Jagtar Singh Chaudhry sold 1,941 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $303,941.19. Following the sale, the chief executive officer owned 345,916 shares of the company's stock, valued at $54,166,986.44. The trade was a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares in the company, valued at $7,278,146.61. The trade was a 3.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

ZS has been the subject of several recent analyst reports. BMO Capital Markets reduced their target price on Zscaler from $315.00 to $210.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Oppenheimer dropped their price target on Zscaler from $280.00 to $250.00 and set an "outperform" rating on the stock in a report on Tuesday, March 10th. Mizuho reduced their price objective on Zscaler from $265.00 to $250.00 and set an "outperform" rating for the company in a research note on Friday, February 27th. KeyCorp raised their target price on Zscaler from $160.00 to $190.00 and gave the company an "overweight" rating in a research report on Monday, May 18th. Finally, Robert W. Baird cut their price target on shares of Zscaler from $360.00 to $300.00 and set an "outperform" rating on the stock in a report on Monday, February 23rd. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Zscaler currently has an average rating of "Moderate Buy" and an average price target of $260.97.

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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