Forsta AP Fonden Has $10 Million Holdings in Zscaler, Inc. $ZS

Key Points

• Forsta AP Fonden nearly doubled its Zscaler stake in the fourth quarter, buying an additional 21,940 shares and bringing its total holdings to 44,440 shares worth about $10 million.
• Zscaler reported fiscal Q3 results that beat expectations, with EPS of $1.08 on revenue of $850.48 million, and revenue rising 25.4% year over year. Even so, the stock has faced pressure because investors were disappointed by the company’s forward guidance.
• Wall Street remains broadly constructive despite the pullback: analysts have a consensus rating of Moderate Buy with an average price target of $216.08, though several firms recently cut their targets.

Forsta AP Fonden increased its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 97.5% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 44,440 shares of the company's stock after purchasing an additional 21,940 shares during the period. Forsta AP Fonden's holdings in Zscaler were worth $9,995,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Binnacle Investments Inc acquired a new position in Zscaler in the 3rd quarter worth $25,000. Picton Mahoney Asset Management acquired a new position in shares of Zscaler during the 3rd quarter worth about $30,000. Family CFO Inc acquired a new position in shares of Zscaler during the 4th quarter worth about $34,000. Missouri Trust & Investment Co boosted its stake in shares of Zscaler by 1,460.0% during the 3rd quarter. Missouri Trust & Investment Co now owns 156 shares of the company's stock worth $47,000 after buying an additional 146 shares during the last quarter. Finally, Murphy & Mullick Capital Management Corp boosted its stake in shares of Zscaler by 185.9% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 223 shares of the company's stock worth $69,000 after buying an additional 145 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director James A. Beer sold 177 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director owned 4,384 shares in the company, valued at approximately $673,075.52. This represents a 3.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Raj Judge sold 2,488 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,130 shares of company stock worth $1,892,487 in the last quarter. Company insiders own 17.20% of the company's stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Despite the selloff, Zscaler reported strong fiscal Q3 results with revenue growth of about 25% year over year and earnings that beat estimates, which some analysts say supports the long-term cybersecurity demand story.
• Positive Sentiment: Some commentary argues the market may be overreacting to the guidance cut, pointing to Zscaler’s strong net retention and its role in AI-driven security workflows as reasons the stock could eventually recover. MarketBeat Zscaler page
• Neutral Sentiment: Zacks Research upgraded Zscaler from “strong sell” to “hold,” suggesting the recent drop may have improved the risk/reward profile, but it does not signal a clear bullish turn.
• Neutral Sentiment: Several articles discuss broader cybersecurity weakness tied to Google’s AI security platform launch and changing investor sentiment around software, which adds context but is not Zscaler-specific.
• Negative Sentiment: Wall Street’s main concern is the disappointing forward guidance, which overshadowed the earnings beat and raised questions about near-term growth and sales execution.
• Negative Sentiment: Reports of class-action and securities-fraud investigations may add overhang to the stock until management can rebuild confidence. Investor alert article

Zscaler Stock Performance

Shares of NASDAQ:ZS opened at $139.73 on Monday. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a market capitalization of $22.60 billion, a P/E ratio of -291.10 and a beta of 0.97. The company has a 50-day simple moving average of $144.36 and a 200 day simple moving average of $188.63. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same period last year, the business posted $0.84 EPS. Zscaler's revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts forecast that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Cantor Fitzgerald reduced their price objective on shares of Zscaler from $300.00 to $225.00 and set an "overweight" rating for the company in a research note on Wednesday, May 27th. Berenberg Bank set a $200.00 price objective on shares of Zscaler in a research note on Thursday. Evercore set a $155.00 price objective on shares of Zscaler and gave the stock an "in-line" rating in a research note on Wednesday. Oppenheimer reduced their price objective on shares of Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. Finally, Citizens Jmp reduced their price objective on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. Thirty-two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $216.08.

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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