Independent Financial Group LLC Invests $2.36 Million in Zscaler, Inc. $ZS

Key Points

• Independent Financial Group LLC initiated a new position in Zscaler, buying 16,848 shares valued at about $2.36 million in the first quarter.
• Zscaler reported better-than-expected quarterly earnings, posting $1.08 EPS on revenue of $850.48 million, with revenue up 25.4% year over year.
• Despite mixed insider activity and some analyst target cuts, Wall Street remains broadly positive on the stock, with 34 Buy ratings and a consensus Moderate Buy target of $214.21.

Independent Financial Group LLC purchased a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 16,848 shares of the company's stock, valued at approximately $2,364,000.

Other hedge funds have also recently bought and sold shares of the company. Qsemble Capital Management LP grew its position in shares of Zscaler by 105.5% during the fourth quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock worth $3,548,000 after buying an additional 8,099 shares in the last quarter. Oxbow Advisors LLC acquired a new stake in Zscaler in the fourth quarter valued at $2,939,000. J. Safra Sarasin Holding AG raised its holdings in Zscaler by 94.7% in the fourth quarter. J. Safra Sarasin Holding AG now owns 63,627 shares of the company's stock valued at $14,311,000 after acquiring an additional 30,952 shares in the last quarter. Leonteq Securities AG bought a new position in Zscaler during the 4th quarter valued at $4,571,000. Finally, Swedbank AB boosted its stake in Zscaler by 92.8% during the 4th quarter. Swedbank AB now owns 20,706 shares of the company's stock valued at $4,657,000 after acquiring an additional 9,966 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Stock Performance

Shares of NASDAQ ZS opened at $149.94 on Friday. 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 50 day simple moving average of $143.85 and a 200-day simple moving average of $159.67. The company has a market cap of $24.25 billion, a PE ratio of -312.37, a P/E/G ratio of 85.93 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 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm's revenue was up 25.4% compared to the same quarter last year. During the same period last year, the firm earned $0.84 EPS. 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, equities research analysts forecast that Zscaler, Inc. will post 0.12 EPS for the current year.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. TD Cowen reissued a "buy" rating on shares of Zscaler in a report on Wednesday, May 27th. Barclays cut their target price on shares of Zscaler from $180.00 to $170.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $200.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Morgan Stanley lowered their price objective on Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a report on Wednesday, May 27th. Finally, UBS Group cut their price objective on Zscaler from $260.00 to $225.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $214.21.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 3,146 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the firm's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. The trade was a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 15,766 shares of company stock worth $1,978,587. 17.20% of the stock is owned by company insiders.

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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