Northwestern Mutual Wealth Management Co. Boosts Holdings in Zscaler, Inc. $ZS

Key Points

• Northwestern Mutual Wealth Management Co. increased its Zscaler stake by 4.1% in the fourth quarter, adding 8,301 shares to reach 210,784 shares valued at about $47.4 million.
• Zscaler reported better-than-expected fiscal Q3 results, with EPS of $1.08 and revenue of $850.48 million, while revenue rose 25.4% year over year.
• The stock remains under pressure after disappointing forward guidance and insider sales, though analysts still hold a consensus rating of “Moderate Buy” with a target price of $216.08.

Northwestern Mutual Wealth Management Co. lifted its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 4.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 210,784 shares of the company's stock after buying an additional 8,301 shares during the period. Northwestern Mutual Wealth Management Co. owned approximately 0.13% of Zscaler worth $47,410,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of ZS. Groupama Asset Managment grew its position in shares of Zscaler by 76,352.6% in the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock valued at $1,423,385,000 after buying an additional 4,743,787 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after buying an additional 741,756 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Zscaler by 6.1% in the 3rd quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company's stock valued at $3,406,506,000 after buying an additional 652,771 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in shares of Zscaler in the 3rd quarter valued at $109,440,000. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new position in shares of Zscaler in the 3rd quarter valued at $88,387,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Stock Up 7.5%

Shares of NASDAQ:ZS opened at $139.73 on Friday. The company has a market cap of $22.60 billion, a price-to-earnings ratio of -291.10 and a beta of 0.96. The firm's 50-day simple moving average is $144.36 and its 200-day simple moving average is $189.61. The company has a quick ratio of 1.90, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. 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 issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business's quarterly revenue was up 25.4% compared to the same quarter last year. During the same quarter in the previous year, the firm 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 predict that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Raj Judge sold 2,488 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares in the company, valued at $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Kevin Rubin sold 1,682 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares of the company's stock, valued at $7,278,146.61. This trade represents a 3.49% 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. Corporate insiders own 17.20% of the company's stock.

Trending Headlines about 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

Analyst Ratings Changes

ZS has been the topic of several research reports. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a research report on Wednesday. Piper Sandler lowered their price objective on shares of Zscaler from $185.00 to $160.00 and set a "neutral" rating on the stock in a research report on Wednesday. Stifel Nicolaus lowered their price objective on shares of Zscaler from $180.00 to $175.00 and set a "buy" rating on the stock in a research report on Wednesday. UBS Group lowered their price objective on shares of Zscaler from $260.00 to $225.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, BMO Capital Markets lowered their price objective on shares of Zscaler from $210.00 to $178.00 and set an "outperform" rating on the stock in a research report on Wednesday. Thirty-two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus target price of $216.08.

Zscaler 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.

Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.