Legal & General Group Plc Raises Holdings in Zscaler, Inc. $ZS

Key Points

• Legal & General Group Plc increased its Zscaler stake by 9.4% in the fourth quarter, bringing its holdings to 645,996 shares worth about $145.3 million.
• Zscaler reported better-than-expected quarterly results, with EPS of $1.08 and revenue of $850.5 million, while revenue rose 25.4% year over year.
• Despite the earnings beat, the company issued cautious guidance and analysts trimmed price targets, citing slower growth expectations and execution risks tied to sales organization changes.

Legal & General Group Plc boosted its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 9.4% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 645,996 shares of the company's stock after purchasing an additional 55,706 shares during the period. Legal & General Group Plc owned about 0.41% of Zscaler worth $145,297,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. SLT Holdings LLC increased its stake in Zscaler by 9.2% in the 4th quarter. SLT Holdings LLC now owns 7,974 shares of the company's stock valued at $1,794,000 after purchasing an additional 675 shares in the last quarter. Swedbank AB increased its stake in Zscaler by 92.8% in the 4th quarter. Swedbank AB now owns 20,706 shares of the company's stock valued at $4,657,000 after purchasing an additional 9,966 shares in the last quarter. Coldstream Capital Management Inc. increased its stake in Zscaler by 11.7% in the 4th quarter. Coldstream Capital Management Inc. now owns 2,837 shares of the company's stock valued at $638,000 after purchasing an additional 297 shares in the last quarter. Legato Capital Management LLC purchased a new position in Zscaler in the 4th quarter valued at approximately $208,000. Finally, Nano Cap New Millennium Growth Fund L P purchased a new position in Zscaler in the 4th quarter valued at approximately $1,057,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler beat quarterly expectations, with revenue and earnings topping estimates and annual recurring revenue still growing strongly, which suggests underlying demand remains healthy.
• Positive Sentiment: Several analysts reiterated positive ratings after the report, arguing that strong net retention and Zero Trust demand could support a recovery if execution improves.
• Neutral Sentiment: Multiple law firms announced investigations into possible securities claims after the stock’s decline, adding headline noise but not changing fundamentals directly.
• Negative Sentiment: The company’s cautious forward guidance, especially for revenue growth and customer acquisition, raised concerns that growth may slow more than investors expected.
• Negative Sentiment: Management pointed to sales leadership departures and a transition in the sales organization, which fueled worries about near-term pipeline and execution risk.

Zscaler Stock Performance

Zscaler stock opened at $130.04 on Friday. 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 stock has a fifty day moving average of $144.69 and a two-hundred day moving average of $189.97. The company has a market capitalization of $21.03 billion, a price-to-earnings ratio of -270.91 and a beta of 0.96. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler's revenue was up 25.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.84 earnings per share. 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, analysts anticipate that Zscaler, Inc. will post -0.03 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other news, Director James A. Beer sold 177 shares of the firm'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 $27,174.81. Following the sale, the director owned 4,384 shares in the company, valued at $673,075.52. This trade represents a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Robert Schlossman sold 2,263 shares of the firm's stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

ZS has been the subject of several research analyst reports. Rosenblatt Securities dropped their price objective on Zscaler from $223.00 to $200.00 and set a "buy" rating for the company in a research note on Wednesday. Canaccord Genuity Group dropped their price objective on Zscaler from $275.00 to $210.00 and set a "buy" rating for the company in a research note on Wednesday. UBS Group dropped their price objective on Zscaler from $260.00 to $225.00 and set a "buy" rating for the company in a research note on Wednesday. Cantor Fitzgerald dropped their price objective on Zscaler from $300.00 to $225.00 and set an "overweight" rating for the company in a research note on Wednesday. Finally, Mizuho dropped their price objective on Zscaler from $210.00 to $185.00 and set an "outperform" rating for the company in a research note on Wednesday. Thirty-two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $216.08.

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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