Ground Swell Capital LLC Acquires Shares of 1,117 Zscaler, Inc. $ZS

Key Points

• Ground Swell Capital LLC acquired 1,117 shares of Zscaler, Inc., valued at approximately $351,000, making it the 22nd largest position in Ground Swell's portfolio.
• Zscaler reported a 21.3% increase in revenue year-over-year with a quarterly revenue of $719.23 million, exceeding analysts' expectations.
• Recent insider sales include EVP Raj Judge, who sold 4,524 shares for about $1.27 million, leading to a significant decrease in their ownership.

Ground Swell Capital LLC acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 1,117 shares of the company's stock, valued at approximately $351,000. Zscaler makes up approximately 0.6% of Ground Swell Capital LLC's holdings, making the stock its 22nd largest position.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in ZS. Vanguard Group Inc. raised its holdings in Zscaler by 3.1% in the 1st quarter. Vanguard Group Inc. now owns 9,890,506 shares of the company's stock valued at $1,962,474,000 after acquiring an additional 294,034 shares during the period. Goldman Sachs Group Inc. grew its stake in Zscaler by 23.4% during the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock worth $604,831,000 after buying an additional 578,883 shares in the last quarter. T. Rowe Price Investment Management Inc. acquired a new position in Zscaler during the first quarter valued at approximately $516,622,000. AQR Capital Management LLC raised its holdings in shares of Zscaler by 23.6% during the 1st quarter. AQR Capital Management LLC now owns 1,191,930 shares of the company's stock worth $234,715,000 after buying an additional 227,899 shares in the last quarter. Finally, Nuveen LLC bought a new position in shares of Zscaler in the first quarter worth about $153,340,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Stock Performance

Shares of ZS opened at $318.77 on Friday. The stock has a 50-day moving average price of $289.57 and a 200-day moving average price of $273.74. The company has a market cap of $50.46 billion, a PE ratio of -1,180.63 and a beta of 1.06. Zscaler, Inc. has a 12-month low of $164.78 and a 12-month high of $319.89. The company has a current ratio of 2.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The company had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. During the same quarter in the prior year, the company earned $0.88 EPS. The firm's revenue was up 21.3% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, equities analysts forecast that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In related news, EVP Raj Judge sold 4,524 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the transaction, the executive vice president owned 73,832 shares of the company's stock, valued at approximately $20,724,642.40. This trade represents a 5.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Robert Schlossman sold 7,006 shares of the firm's stock in a transaction dated Thursday, October 2nd. The stock was sold at an average price of $305.57, for a total value of $2,140,823.42. Following the completion of the transaction, the insider directly owned 76,132 shares in the company, valued at $23,263,655.24. This trade represents a 8.43% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 39,884 shares of company stock worth $11,406,825. 18.10% of the stock is owned by company insiders.

Analysts Set New Price Targets

ZS has been the topic of several recent research reports. B. Riley assumed coverage on shares of Zscaler in a research report on Tuesday, August 26th. They set a "neutral" rating and a $275.00 target price on the stock. Zacks Research upgraded Zscaler from a "strong sell" rating to a "hold" rating in a report on Thursday, October 2nd. Stifel Nicolaus upped their price objective on shares of Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. UBS Group reduced their price target on shares of Zscaler from $365.00 to $350.00 and set a "buy" rating for the company in a research report on Wednesday, September 3rd. Finally, BTIG Research reaffirmed a "buy" rating on shares of Zscaler in a report on Thursday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $307.86.

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.

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