Northwestern Mutual Wealth Management Co. Invests $3.45 Million in Zscaler, Inc. $ZS

Key Points

• Northwestern Mutual Wealth Management initiated a $3.45 million position in Zscaler during the second quarter, purchasing 24,432 shares. Institutional investors collectively own 46.45% of the company.
• Zscaler reported quarterly revenue of $850.48 million, up 25.4% year over year, and adjusted EPS of $1.08, exceeding analysts’ estimate of $1.01.
• Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and an average price target of $215.36, despite recent insider selling and a 3.1% stock decline.

Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 24,432 shares of the company's stock, valued at approximately $3,449,000.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Integrated Wealth Concepts LLC grew its position in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock worth $285,000 after purchasing an additional 239 shares during the last quarter. NewEdge Advisors LLC increased its stake in Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock valued at $972,000 after purchasing an additional 370 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock worth $558,000 after buying an additional 238 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in shares of Zscaler in the second quarter worth $252,000. Finally, Jump Financial LLC acquired a new stake in shares of Zscaler during the second quarter worth $3,019,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CFO Kevin Rubin sold 3,000 shares of the company's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer owned 41,901 shares of the company's stock, valued at approximately $5,204,942.22. This represents a 6.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the transaction, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This represents a 6.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,269 shares of company stock worth $2,052,589 in the last 90 days. 17.20% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of brokerages have recently weighed in on ZS. Mizuho boosted their price objective on shares of Zscaler from $185.00 to $210.00 and gave the company an "outperform" rating in a report on Wednesday, August 19th. BMO Capital Markets reduced their target price on Zscaler from $210.00 to $178.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $200.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. UBS Group dropped their price target on Zscaler from $260.00 to $225.00 and set a "buy" rating on the stock in a research note on Wednesday, May 27th. Finally, Citigroup reissued a "market outperform" rating on shares of Zscaler in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $215.36.

Zscaler Stock Down 3.1%

ZS opened at $176.06 on Tuesday. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The company has a fifty day moving average of $152.01 and a two-hundred day moving average of $150.11. The stock has a market capitalization of $28.47 billion, a price-to-earnings ratio of -366.78, a PEG ratio of 106.97 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same period in the prior year, the company posted $0.84 EPS. The company's revenue for the quarter was up 25.4% on a year-over-year basis. On average, research analysts expect that Zscaler, Inc. will post 0.13 earnings per share for the current year.

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.

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