Mizuho Markets Americas LLC Invests $9.91 Million in Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Mizuho Markets Americas LLC acquired nearly 50,000 shares of Zscaler, Inc. for approximately $9.9 million during the first quarter.
• Analysts have shown strong support for Zscaler, with 29 buy ratings and price targets increasing, indicating bullish sentiment about the company's future performance.
• Zscaler's recent earnings showed a 22.6% year-over-year revenue growth, exceeding consensus estimates, though the firm has a negative net margin.

Mizuho Markets Americas LLC acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 49,950 shares of the company's stock, valued at approximately $9,911,000.

Several other large investors have also made changes to their positions in the business. GAMMA Investing LLC boosted its holdings in Zscaler by 43.1% during the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock worth $127,000 after buying an additional 193 shares in the last quarter. Allworth Financial LP lifted its holdings in Zscaler by 47.4% during the first quarter. Allworth Financial LP now owns 1,002 shares of the company's stock valued at $211,000 after purchasing an additional 322 shares in the last quarter. Krane Funds Advisors LLC grew its position in shares of Zscaler by 36.4% in the first quarter. Krane Funds Advisors LLC now owns 1,667 shares of the company's stock valued at $331,000 after purchasing an additional 445 shares during the period. Merit Financial Group LLC grew its position in shares of Zscaler by 42.0% in the first quarter. Merit Financial Group LLC now owns 6,197 shares of the company's stock valued at $1,230,000 after purchasing an additional 1,832 shares during the period. Finally, Light Street Capital Management LLC acquired a new stake in shares of Zscaler in the fourth quarter valued at about $5,992,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Price Performance

Shares of Zscaler stock traded up $4.25 during trading hours on Tuesday, hitting $275.43. The company had a trading volume of 1,123,820 shares, compared to its average volume of 1,630,514. The company's 50-day moving average is $296.56 and its two-hundred day moving average is $242.81. Zscaler, Inc. has a twelve month low of $153.45 and a twelve month high of $318.46. The company has a market cap of $42.88 billion, a P/E ratio of -1,059.35, a price-to-earnings-growth ratio of 243.13 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, beating the consensus estimate of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The firm had revenue of $678.03 million during the quarter, compared to the consensus estimate of $667.13 million. During the same quarter in the prior year, the firm earned $0.88 EPS. Zscaler's revenue for the quarter was up 22.6% on a year-over-year basis. Sell-side analysts expect that Zscaler, Inc. will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In other news, major shareholder Ajay Mangal sold 120,000 shares of the stock in a transaction dated Monday, June 9th. The shares were sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the transaction, the insider owned 2,550,210 shares in the company, valued at $767,332,686.90. This trade represents a 4.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Syam Nair sold 28,947 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $250.00, for a total transaction of $7,236,750.00. Following the completion of the transaction, the insider owned 110,566 shares of the company's stock, valued at $27,641,500. This represents a 20.75% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 200,793 shares of company stock worth $58,752,794 in the last 90 days. Corporate insiders own 18.10% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on ZS. Stephens reissued an "overweight" rating and issued a $255.00 price target on shares of Zscaler in a research note on Tuesday, May 27th. Roth Capital reissued a "neutral" rating on shares of Zscaler in a research note on Wednesday, May 28th. JPMorgan Chase & Co. raised their price target on shares of Zscaler from $292.00 to $348.00 and gave the stock an "overweight" rating in a research note on Monday, June 16th. BNP Paribas raised shares of Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price target on the stock in a research note on Monday, April 28th. Finally, KeyCorp upped their target price on Zscaler from $290.00 to $310.00 and gave the company an "overweight" rating in a report on Friday, May 30th. Seven research analysts have rated the stock with a hold rating, twenty-nine have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.