NorthCrest Asset Manangement LLC Purchases 6,627 Shares of Zscaler, Inc. $ZS

Key Points

• NorthCrest Asset Management initiated a Zscaler position by purchasing 6,627 shares valued at approximately $1.44 million. Other institutional investors also increased or initiated holdings, with institutions and hedge funds owning 46.45% of the stock.
• Analyst sentiment remains favorable: 35 analysts rate Zscaler a Buy, seven rate it Hold and one rates it Sell. The stock has a “Moderate Buy” consensus rating and an average price target of $239.41.
• Zscaler exceeded quarterly earnings and revenue expectations, reporting $1.19 in EPS and $898.19 million in revenue, up 24.9% year over year. However, insider selling, valuation concerns and competition in cybersecurity remain potential risks.

NorthCrest Asset Manangement LLC acquired a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 6,627 shares of the company's stock, valued at approximately $1,437,000.

A number of other institutional investors have also made changes to their positions in ZS. Perpetual Ltd increased its stake in shares of Zscaler by 50.0% in the 3rd quarter. Perpetual Ltd now owns 4,409 shares of the company's stock valued at $879,000 after acquiring an additional 1,470 shares during the last quarter. Riversedge Advisors LLC acquired a new stake in shares of Zscaler in the 3rd quarter valued at approximately $275,000. Wedmont Private Capital bought a new position in Zscaler during the 3rd quarter worth approximately $246,000. GAMMA Investing LLC boosted its stake in Zscaler by 13.9% during the 3rd quarter. GAMMA Investing LLC now owns 805 shares of the company's stock worth $161,000 after acquiring an additional 98 shares during the last quarter. Finally, Farther Finance Advisors LLC boosted its stake in Zscaler by 79.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 3,691 shares of the company's stock worth $736,000 after acquiring an additional 1,638 shares during the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

ZS has been the subject of a number of analyst reports. Needham & Company LLC boosted their price objective on shares of Zscaler from $215.00 to $255.00 and gave the company a "buy" rating in a report on Wednesday, October 7th. Wells Fargo & Company lifted their price target on shares of Zscaler from $215.00 to $260.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 7th. Guggenheim lifted their price target on shares of Zscaler from $214.00 to $254.00 and gave the stock a "buy" rating in a research report on Wednesday, October 7th. Royal Bank Of Canada reissued an "outperform" rating and issued a $236.00 price target on shares of Zscaler in a report on Wednesday, October 7th. Finally, Wedbush boosted their price target on shares of Zscaler from $215.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, October 7th. Thirty-five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $239.41.

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 5,394 shares of Zscaler stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the sale, the insider owned 61,525 shares of the company's stock, valued at approximately $12,305,000. This trade represents a 8.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 5,957 shares of Zscaler stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the completion of the sale, the chief financial officer directly owned 43,287 shares in the company, valued at approximately $8,344,002.12. This represents a 12.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 54,053 shares of company stock valued at $11,256,876 over the last three months. 17.20% of the stock is currently owned by corporate insiders.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor-day outlook remains supportive: Zscaler reaffirmed its fiscal 2027 guidance and outlined a long-term path toward roughly $8 billion in annual recurring revenue, with additional potential from AI-driven cybersecurity demand. Several analysts subsequently raised their price targets. Zscaler investor-day outlook
• Positive Sentiment: Analyst sentiment is generally favorable: Recent target increases included Baird’s $285 target and JMP’s $265 target. MarketBeat data shows a “Moderate Buy” consensus, although targets vary considerably. Zscaler analyst ratings
• Neutral Sentiment: Investor attention is elevated: ZS has been among the most-searched stocks on Zacks, but high interest alone does not establish a fundamental catalyst and analyst opinions remain mixed. Investors search Zscaler
• Negative Sentiment: Valuation and growth risks are limiting upside: A recent analysis rated Zscaler “Hold,” arguing that the rally has already removed much of the favorable risk/reward. Weak fiscal 2027 net new ARR guidance, possible revenue-growth moderation and competition from CrowdStrike and Palo Alto Networks remain concerns. Zscaler valuation analysis
• Negative Sentiment: Insider selling adds pressure: Chief Product Officer Adam Geller sold approximately $5.65 million of shares, including a larger sale disclosed recently. The transactions were conducted under a pre-arranged Rule 10b5-1 plan, reducing their significance as a direct signal of company fundamentals but potentially weighing on sentiment. Zscaler insider sale
• Negative Sentiment: Legal scrutiny is an additional overhang: Pomerantz LLP announced an investigation into potential investor claims involving Zscaler. The announcement does not establish wrongdoing, but it may increase headline and litigation risk. Pomerantz Zscaler investor alert

Zscaler Stock Down 3.4%

Shares of ZS stock opened at $220.79 on Thursday. The firm has a fifty day moving average of $190.07 and a 200-day moving average of $159.06. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $36.00 billion, a price-to-earnings ratio of -566.13, a P/E/G ratio of 21.97 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. During the same period last year, the business posted $0.89 earnings per share. The firm's quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, equities research analysts predict that Zscaler, Inc. will post 0.69 earnings per share for the current fiscal year.

Zscaler Profile

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

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

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