Guggenheim Capital LLC Cuts Stake in Zscaler, Inc. $ZS

Key Points

• Guggenheim Capital LLC reduced its holdings in Zscaler, Inc. by 22.4%, now owning 54,969 shares worth approximately $10.91 million.
• Zscaler reported earnings of $0.84 per share, exceeding estimates, and its revenue for the quarter was up 22.6% year-over-year at $678.03 million.
• Wall Street analysts have a consensus rating of "Moderate Buy" for Zscaler, with price targets raised by several firms, reaching a high of $355.00 from JMP Securities.

Guggenheim Capital LLC decreased its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 22.4% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 54,969 shares of the company's stock after selling 15,843 shares during the period. Guggenheim Capital LLC's holdings in Zscaler were worth $10,907,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its holdings in Zscaler by 43.1% in the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock valued at $127,000 after buying an additional 193 shares in the last quarter. Allworth Financial LP increased its holdings in Zscaler by 47.4% in the first quarter. Allworth Financial LP now owns 1,002 shares of the company's stock valued at $211,000 after buying an additional 322 shares in the last quarter. Krane Funds Advisors LLC increased its holdings in Zscaler by 36.4% in the first quarter. Krane Funds Advisors LLC now owns 1,667 shares of the company's stock valued at $331,000 after buying an additional 445 shares in the last quarter. Merit Financial Group LLC increased its holdings in Zscaler by 42.0% in the first quarter. Merit Financial Group LLC now owns 6,197 shares of the company's stock valued at $1,230,000 after buying an additional 1,832 shares in the last quarter. Finally, National Pension Service increased its holdings in Zscaler by 11.2% in the first quarter. National Pension Service now owns 171,847 shares of the company's stock valued at $34,098,000 after buying an additional 17,342 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Trading Down 1.2%

ZS stock traded down $3.37 during trading on Friday, reaching $277.05. 1,492,491 shares of the stock were exchanged, compared to its average volume of 1,292,357. The firm has a market capitalization of $43.14 billion, a price-to-earnings ratio of -1,065.58, a P/E/G ratio of 259.58 and a beta of 1.05. The business has a 50 day moving average price of $289.20 and a 200-day moving average price of $249.34. Zscaler, Inc. has a 1 year low of $153.45 and a 1 year high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Thursday, May 29th. The company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The business had revenue of $678.03 million during the quarter, compared to analysts' expectations of $667.13 million. During the same quarter in the prior year, the company posted $0.88 EPS. The business's revenue for the quarter was up 22.6% on a year-over-year basis. On average, research analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, EVP Raj Judge sold 2,957 shares of the firm's stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $898,040.90. Following the completion of the sale, the executive vice president owned 76,289 shares of the company's stock, valued at $23,168,969.30. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Adam Geller sold 3,662 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the sale, the insider directly owned 46,813 shares of the company's stock, valued at approximately $14,358,483.36. This trade represents a 7.26% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 168,256 shares of company stock valued at $50,618,544 over the last 90 days. Corporate insiders own 18.10% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Mizuho boosted their target price on shares of Zscaler from $275.00 to $290.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 4th. Oppenheimer boosted their target price on shares of Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a research note on Friday, June 6th. FBN Securities raised shares of Zscaler to a "strong-buy" rating in a research note on Friday, May 30th. Guggenheim reissued a "neutral" rating on shares of Zscaler in a research note on Friday, May 30th. Finally, Rosenblatt Securities upped their price objective on shares of Zscaler from $235.00 to $315.00 and gave the company a "buy" rating in a research note on Friday, May 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $296.49.

Zscaler Company 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.