Lmcg Investments LLC Sells 16,453 Shares of Zscaler, Inc. $ZS

Key Points

• Lmcg Investments LLC cut its Zscaler stake by 28.6% in the third quarter, selling 16,453 shares and retaining 41,001 shares valued at approximately $8.18 million. Institutional investors collectively own 46.45% of the company.
• Zscaler reported quarterly results above expectations, with EPS of $1.19 versus the $1.09 consensus and revenue of $898.19 million, up 24.9% year over year. Despite positive operating performance, the company posted a negative net margin of 1.88%.
• Analyst sentiment remains favorable, with 36 Buy ratings, eight Holds and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $239.44. Insiders sold 54,053 shares worth $11.26 million during the quarter.

Lmcg Investments LLC decreased its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 28.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 41,001 shares of the company's stock after selling 16,453 shares during the quarter. Lmcg Investments LLC's holdings in Zscaler were worth $8,176,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of the business. Burkett Financial Services LLC purchased a new position in Zscaler in the third quarter worth $27,000. Activest Wealth Management increased its position in shares of Zscaler by 1,281.8% in the 3rd quarter. Activest Wealth Management now owns 152 shares of the company's stock valued at $30,000 after acquiring an additional 141 shares during the period. POM Investment Strategies LLC boosted its position in Zscaler by 92.9% in the second quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock valued at $31,000 after buying an additional 105 shares during the last quarter. Elevation Wealth Partners LLC raised its holdings in shares of Zscaler by 84.3% during the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company's stock worth $31,000 after purchasing an additional 70 shares during the last quarter. Finally, Fortitude Family Office LLC raised its position in Zscaler by 2,466.7% during the third quarter. Fortitude Family Office LLC now owns 154 shares of the company's stock valued at $31,000 after acquiring an additional 148 shares in the last quarter. Institutional investors own 46.45% of the company's stock.

Insider Activity at Zscaler

In other Zscaler news, insider Robert Schlossman sold 5,394 shares of the company's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the transaction, the insider owned 61,525 shares in the company, valued at $12,305,000. This represents a 8.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 177 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the transaction, the director owned 4,030 shares of the company's stock, valued at $773,800.30. This represents a 4.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 54,053 shares of company stock valued at $11,256,876 over the last quarter. 17.20% of the stock is owned by insiders.

Zscaler Price Performance

ZS stock opened at $231.33 on Thursday. The business has a 50 day moving average price of $194.52 and a 200 day moving average price of $161.88. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock has a market cap of $37.72 billion, a price-to-earnings ratio of -593.15, a PEG ratio of 20.61 and a beta of 0.94. 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 announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm's revenue was up 24.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities research analysts anticipate that Zscaler, Inc. will post 0.69 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have commented on ZS shares. Piper Sandler raised their price objective on Zscaler from $160.00 to $175.00 and gave the company a "neutral" rating in a report on Friday, September 4th. BMO Capital Markets increased their price target on shares of Zscaler from $178.00 to $200.00 and gave the company an "outperform" rating in a research note on Friday, September 4th. Citigroup boosted their price target on shares of Zscaler from $245.00 to $260.00 and gave the company a "buy" rating in a research note on Thursday, October 15th. UBS Group raised their price objective on shares of Zscaler from $225.00 to $250.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. Finally, Rosenblatt Securities set a $250.00 price target on Zscaler in a report on Wednesday, October 7th. Thirty-six equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Zscaler currently has an average rating of "Moderate Buy" and an average target price of $239.44.

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization's network to users.

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