Jupiter Asset Management Ltd. Takes Position in Zscaler, Inc. $ZS

Key Points

• Jupiter Asset Management disclosed a new fourth-quarter stake in Zscaler, buying 91,210 shares worth about $20.5 million, or roughly 0.06% of the company.
• Other institutional investors also adjusted positions in Zscaler, and overall 46.45% of the stock is held by hedge funds and other institutions. Insiders, meanwhile, sold shares during the quarter, including recent sales by Adam Geller and Raj Judge.
• Analysts remain broadly constructive despite some trimmed targets: Zscaler has a “Moderate Buy” consensus with an average price target of $216.08. The company also recently beat quarterly EPS and revenue estimates, though investors remain focused on weaker forward guidance and related overhangs.

Jupiter Asset Management Ltd. acquired a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 91,210 shares of the company's stock, valued at approximately $20,515,000. Jupiter Asset Management Ltd. owned about 0.06% of Zscaler at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ZS. Foundations Investment Advisors LLC boosted its position in Zscaler by 15.7% in the fourth quarter. Foundations Investment Advisors LLC now owns 9,057 shares of the company's stock worth $2,037,000 after purchasing an additional 1,226 shares during the last quarter. Murphy & Mullick Capital Management Corp lifted its position in shares of Zscaler by 83.0% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 408 shares of the company's stock valued at $92,000 after buying an additional 185 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Zscaler by 5.0% in the fourth quarter. Geode Capital Management LLC now owns 2,069,630 shares of the company's stock worth $464,783,000 after purchasing an additional 98,140 shares in the last quarter. Employees Retirement System of Texas bought a new stake in shares of Zscaler during the 4th quarter valued at $81,000. Finally, Malaga Cove Capital LLC raised its position in shares of Zscaler by 3.3% during the 4th quarter. Malaga Cove Capital LLC now owns 8,337 shares of the company's stock valued at $1,875,000 after purchasing an additional 266 shares during the period. 46.45% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 2,094 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the transaction, the insider owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Raj Judge sold 2,488 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the transaction, the executive vice president owned 67,906 shares of the company's stock, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 12,130 shares of company stock worth $1,892,487 over the last quarter. 17.20% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts recently issued reports on ZS shares. HC Wainwright raised Zscaler from a "buy" rating to a "buy" rating in a research note on Monday, May 18th. Deutsche Bank Aktiengesellschaft reduced their price objective on Zscaler from $185.00 to $175.00 and set a "buy" rating on the stock in a research note on Wednesday. Citizens Jmp reduced their price objective on Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research note on Friday, May 1st. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a research note on Wednesday. Finally, Guggenheim reissued a "neutral" rating on shares of Zscaler in a research report on Wednesday. Thirty-two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $216.08.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Despite the selloff, Zscaler reported strong fiscal Q3 results with revenue growth of about 25% year over year and earnings that beat estimates, which some analysts say supports the long-term cybersecurity demand story.
• Positive Sentiment: Some commentary argues the market may be overreacting to the guidance cut, pointing to Zscaler’s strong net retention and its role in AI-driven security workflows as reasons the stock could eventually recover. MarketBeat Zscaler page
• Neutral Sentiment: Zacks Research upgraded Zscaler from “strong sell” to “hold,” suggesting the recent drop may have improved the risk/reward profile, but it does not signal a clear bullish turn.
• Neutral Sentiment: Several articles discuss broader cybersecurity weakness tied to Google’s AI security platform launch and changing investor sentiment around software, which adds context but is not Zscaler-specific.
• Negative Sentiment: Wall Street’s main concern is the disappointing forward guidance, which overshadowed the earnings beat and raised questions about near-term growth and sales execution.
• Negative Sentiment: Reports of class-action and securities-fraud investigations may add overhang to the stock until management can rebuild confidence. Investor alert article

Zscaler Stock Performance

NASDAQ ZS opened at $139.73 on Friday. The business's 50 day moving average price is $144.36 and its 200-day moving average price is $189.61. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.90 and a current ratio of 1.86. The company has a market cap of $22.60 billion, a P/E ratio of -291.10 and a beta of 0.96.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. During the same quarter in the previous year, the business earned $0.84 EPS. Zscaler's revenue 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. Sell-side analysts predict that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Zscaler 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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