Howe & Rusling Inc. Boosts Stock Holdings in Zscaler, Inc. $ZS

Key Points

• Howe & Rusling Inc. increased its Zscaler stake by 32.7% in the first quarter, buying 6,873 more shares and bringing its total to 27,916 shares valued at about $3.9 million.
• Zscaler’s latest earnings beat expectations, with quarterly EPS of $1.08 versus $1.01 estimated and revenue of $850.48 million, up 25.4% year over year.
• Analysts remain generally constructive on the stock: Zscaler has a Moderate Buy consensus rating and an average price target of $213.97, though some firms recently trimmed targets or kept neutral views.

Howe & Rusling Inc. raised its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 32.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 27,916 shares of the company's stock after purchasing an additional 6,873 shares during the period. Howe & Rusling Inc.'s holdings in Zscaler were worth $3,916,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also bought and sold shares of the company. Korea Investment CORP boosted its position in Zscaler by 24.0% during the third quarter. Korea Investment CORP now owns 98,370 shares of the company's stock worth $29,478,000 after purchasing an additional 19,026 shares during the period. Qsemble Capital Management LP raised its position in shares of Zscaler by 105.5% in the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock valued at $3,548,000 after purchasing an additional 8,099 shares during the period. Oxbow Advisors LLC bought a new stake in shares of Zscaler in the fourth quarter valued at approximately $2,939,000. Vinva Investment Management Ltd raised its position in shares of Zscaler by 136.1% in the third quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company's stock valued at $3,400,000 after purchasing an additional 6,541 shares during the period. Finally, Victory Capital Management Inc. lifted its stake in shares of Zscaler by 13.2% during the 3rd quarter. Victory Capital Management Inc. now owns 143,397 shares of the company's stock valued at $42,970,000 after buying an additional 16,721 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently commented on ZS shares. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $225.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Scotiabank lowered their target price on shares of Zscaler from $190.00 to $175.00 and set a "sector outperform" rating on the stock in a report on Wednesday, May 27th. The Goldman Sachs Group restated a "neutral" rating and set a $179.00 target price on shares of Zscaler in a research report on Wednesday, May 27th. Zacks Research raised Zscaler from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Finally, Evercore set a $155.00 price target on Zscaler and gave the company an "in-line" rating in a research report on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and an average price target of $213.97.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $147.33 on Friday. The company has a 50 day moving average of $142.26 and a 200 day moving average of $165.51. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $23.82 billion, a P/E ratio of -306.93, a P/E/G ratio of 92.11 and a beta of 0.96. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analysts' expectations of $835.14 million. During the same period in the prior year, the company posted $0.84 EPS. The business's revenue for the quarter was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, sell-side analysts forecast that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Insider Activity

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of Zscaler stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider owned 69,366 shares of the company's stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. 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. In the last three months, insiders sold 15,644 shares of company stock worth $1,960,287. Company insiders own 17.20% of the company's stock.

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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