Handelsbanken Fonder AB Buys 28,792 Shares of Zscaler, Inc. $ZS

Key Points

• Handelsbanken Fonder increased its Zscaler stake by 89.6%, buying 28,792 additional shares to hold 60,933 shares valued at approximately $8.6 million. Institutional investors collectively own 46.45% of the company.
• Analyst sentiment remains positive, with 34 Buy ratings, six Holds and one Sell rating. Zscaler has a consensus “Moderate Buy” rating and an average price target of $214.21.
• Zscaler exceeded quarterly expectations, reporting adjusted EPS of $1.08 versus the $1.01 consensus and revenue of $850.48 million, up 25.4% year over year. Insiders sold 16,269 shares worth about $2.05 million over the past three months.

Handelsbanken Fonder AB lifted its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 89.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 60,933 shares of the company's stock after buying an additional 28,792 shares during the period. Handelsbanken Fonder AB's holdings in Zscaler were worth $8,601,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. First Trust Advisors LP lifted its stake in Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after acquiring an additional 935,781 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after purchasing an additional 777,414 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after purchasing an additional 741,756 shares during the last quarter. Pictet Asset Management Holding SA lifted its position in shares of Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock valued at $269,285,000 after purchasing an additional 661,413 shares in the last quarter. Finally, SEB Asset Management AB bought a new position in shares of Zscaler during the first quarter valued at about $60,033,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 27th. Wolfe Research reissued an "outperform" rating and set a $150.00 target price on shares of Zscaler in a research report on Thursday, June 11th. Cantor Fitzgerald restated an "overweight" rating and issued a $225.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Scotiabank reduced their target price on Zscaler from $190.00 to $175.00 and set a "sector outperform" rating for the company in a report on Wednesday, May 27th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $214.21.

Insider Transactions at Zscaler

In other news, insider Adam Geller sold 2,817 shares of the company's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. This represents a 6.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares of the company's stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 16,269 shares of company stock valued at $2,052,589 in the last three months. 17.20% of the stock is currently owned by company insiders.

Zscaler Stock Performance

NASDAQ ZS opened at $188.18 on Friday. The company has a market capitalization of $30.43 billion, a PE ratio of -392.03, a price-to-earnings-growth ratio of 63.82 and a beta of 0.94. 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, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a 50-day simple moving average of $144.52 and a 200 day simple moving average of $151.28.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. During the same period in the previous year, the company earned $0.84 earnings per share. The company's quarterly 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. On average, research analysts predict that Zscaler, Inc. will post 0.12 EPS for the current year.

Zscaler Company Profile

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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