Nomura Asset Management Co. Ltd. Grows Position in Zscaler, Inc. $ZS

Key Points

• Nomura Asset Management increased its Zscaler stake by 4.7% in the fourth quarter, adding 9,926 shares to bring its total holdings to 221,565 shares worth about $49.8 million.
• Zscaler’s latest quarterly results beat expectations, with earnings of $1.08 per share and revenue of $850.5 million, up 25.4% year over year; however, investors remain focused on weaker forward guidance.
• Wall Street is still generally constructive on the stock, with a Moderate Buy consensus and an average target price of $216.08, though several analysts have trimmed price targets after the earnings report.

Nomura Asset Management Co. Ltd. boosted its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 4.7% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 221,565 shares of the company's stock after acquiring an additional 9,926 shares during the quarter. Nomura Asset Management Co. Ltd. owned about 0.14% of Zscaler worth $49,834,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of ZS. Binnacle Investments Inc purchased a new position in Zscaler in the third quarter worth $25,000. Picton Mahoney Asset Management purchased a new position in Zscaler in the third quarter worth $30,000. Family CFO Inc purchased a new position in Zscaler in the fourth quarter worth $34,000. Missouri Trust & Investment Co raised its position in Zscaler by 1,460.0% in the third quarter. Missouri Trust & Investment Co now owns 156 shares of the company's stock worth $47,000 after acquiring an additional 146 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV raised its position in Zscaler by 26,100.0% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 262 shares of the company's stock worth $59,000 after acquiring an additional 261 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Price Performance

ZS opened at $139.73 on Monday. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market cap of $22.60 billion, a P/E ratio of -291.10 and a beta of 0.97. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The business's fifty day simple moving average is $144.36 and its 200 day simple moving average is $188.63.

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

Wall Street Analyst Weigh In

Several research firms have issued reports on ZS. BTIG Research reiterated a "neutral" rating on shares of Zscaler in a research report on Thursday, April 9th. Stephens set a $205.00 price objective on Zscaler in a research report on Wednesday. HC Wainwright upgraded Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. JPMorgan Chase & Co. cut their price objective on Zscaler from $250.00 to $205.00 and set an "overweight" rating for the company in a research report on Wednesday, May 27th. Finally, Rosenblatt Securities cut their price objective on Zscaler from $223.00 to $200.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Thirty-two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $216.08.

Key Stories Impacting Zscaler

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

Insider Buying and Selling at Zscaler

In related news, insider Robert Schlossman sold 2,263 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider owned 72,390 shares of the company's stock, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider directly owned 46,949 shares in the company, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is owned by company insiders.

Zscaler Company 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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