Nykredit A S Takes Position in Zscaler, Inc. $ZS

Key Points

• Nykredit A/S acquired 50,643 Zscaler shares during the second quarter, valued at approximately $7.15 million. Institutional investors and hedge funds collectively own 46.45% of Zscaler.
• Zscaler exceeded fiscal fourth-quarter expectations, reporting adjusted EPS of $1.19 and revenue of $898.2 million, with revenue and ARR each growing 25% year over year. Demand for AI security, enterprise offerings and its broader platform remains a key growth catalyst.
• The company’s fiscal 2027 outlook calls for significantly slower revenue and ARR growth of roughly 17%, while free cash flow fell 65% year over year and restructuring will affect about 3% of employees. Despite these concerns, analysts maintain a consensus “Moderate Buy” rating with an average price target of $215.90.

Nykredit A S acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 50,643 shares of the company's stock, valued at approximately $7,148,000.

Several other hedge funds have also recently bought and sold shares of ZS. Binnacle Investments Inc purchased a new stake in Zscaler during the third quarter worth about $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler in the fourth quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of Zscaler in the fourth quarter valued at approximately $30,000. Mcguire Capital Advisors Inc. purchased a new stake in Zscaler during the 4th quarter worth approximately $32,000. Finally, Strive Financial Group LLC purchased a new stake in Zscaler during the 4th quarter worth approximately $39,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

Analyst Upgrades and Downgrades

Several equities analysts have commented on ZS shares. Robert W. Baird raised their price target on shares of Zscaler from $220.00 to $230.00 and gave the company an "outperform" rating in a research report on Friday. Zacks Research lowered Zscaler from a "hold" rating to a "strong sell" rating in a research report on Thursday. FBN Securities reiterated an "outperform" rating and issued a $175.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. Stifel Nicolaus lifted their target price on Zscaler from $175.00 to $200.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Finally, Guggenheim reiterated a "buy" rating and issued a $214.00 price target on shares of Zscaler in a research note on Friday. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and a consensus target price of $215.90.

Zscaler Trading Down 4.5%

ZS opened at $169.80 on Friday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. Zscaler, Inc. has a one year low of $114.63 and a one year high of $336.99. The company has a market cap of $27.46 billion, a P/E ratio of -435.38, a PEG ratio of 99.94 and a beta of 0.95. The business's 50-day simple moving average is $161.26 and its 200-day simple moving average is $150.53.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to analysts' expectations of $876.96 million. Zscaler had a positive return on equity of 1.29% and a negative net margin of 1.88%.The firm's revenue was up 24.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.89 earnings per share. 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 expect that Zscaler, Inc. will post 0.13 EPS for the current fiscal year.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 2,817 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider directly owned 42,314 shares of the company's stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Chaudhry sold 2,878 shares of the business's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer directly owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. 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 have sold a total of 16,772 shares of company stock worth $2,139,799 over the last 90 days. 17.20% of the stock is owned by corporate insiders.

About Zscaler

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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