OMERS ADMINISTRATION Corp Purchases New Shares in Zscaler, Inc. $ZS

Key Points

• OMERS Administration Corp. acquired 5,407 Zscaler shares during the second quarter, worth approximately $763,000. Institutional investors collectively own 46.45% of the company.
• Zscaler recently reported quarterly EPS of $1.08, exceeding the $1.01 estimate, while revenue rose 25.4% year over year to $850.48 million.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $216.18, though some firms have lowered targets and Evercore warned of valuation risk ahead of earnings.

OMERS ADMINISTRATION Corp acquired a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 5,407 shares of the company's stock, valued at approximately $763,000.

Several other institutional investors and hedge funds have also recently modified their holdings of ZS. Binnacle Investments Inc purchased a new position in shares of Zscaler during the third quarter valued at about $25,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler in the fourth quarter worth about $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the 4th quarter valued at approximately $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the 4th quarter valued at approximately $32,000. Finally, Western Wealth Management LLC purchased a new position in shares of Zscaler during the 1st quarter worth approximately $33,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Robert Schlossman sold 3,146 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company's stock, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the sale, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This 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. In the last three months, insiders have sold 16,772 shares of company stock worth $2,139,799. Corporate insiders own 17.20% of the company's stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: A broad cybersecurity-sector re-rating lifted Zscaler and other previously underperforming security stocks. The First Trust NASDAQ Cybersecurity ETF also advanced strongly, suggesting investors are buying the group rather than focusing only on ZS. Cybersecurity sector re-rating
• Positive Sentiment: J.P. Morgan assigned Zscaler a “buy” or “overweight” view and raised its price target from $205 to $215. The higher target reinforces expectations for additional upside and was a direct bullish catalyst. J.P. Morgan upgrades Zscaler
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment provides exposure to a developer of self-improving AI models and supports Zscaler’s broader enterprise-AI positioning, although it is unlikely to materially affect near-term earnings. Deep Cogito financing
• Neutral Sentiment: Investors are awaiting Zscaler’s quarterly earnings announcement. The company previously exceeded consensus estimates for earnings and revenue, but the upcoming report must validate expectations for continued growth in cloud security and AI-related demand. Zscaler earnings announcement
• Negative Sentiment: Evercore placed Zscaler on its tactical “underperform” list ahead of results, indicating that valuation and elevated growth expectations could create downside risk if the earnings outlook disappoints. Evercore underperform view
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by about 1.2% and is a modest negative signal, though the planned nature and small size limit its significance. Zscaler CFO stock sale

Wall Street Analyst Weigh In

ZS has been the subject of several research reports. Piper Sandler decreased their target price on Zscaler from $185.00 to $160.00 and set a "neutral" rating for the company in a research report on Wednesday, May 27th. Cantor Fitzgerald restated an "overweight" rating and set a $225.00 price target on shares of Zscaler in a research report on Wednesday, August 19th. TD Cowen increased their price objective on Zscaler from $180.00 to $200.00 and gave the stock a "buy" rating in a report on Monday, August 17th. Robert W. Baird lowered their price objective on Zscaler from $265.00 to $230.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Finally, HC Wainwright raised shares of Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $216.18.

Zscaler Trading Up 10.0%

NASDAQ ZS opened at $187.30 on Friday. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a market cap of $30.29 billion, a P/E ratio of -390.20, a P/E/G ratio of 100.24 and a beta of 0.94. The stock's fifty day moving average price is $155.00 and its 200-day moving average price is $150.13. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly 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. The firm had revenue of $850.48 million during 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%.Zscaler'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 EPS. As a group, equities analysts forecast that Zscaler, Inc. will post 0.13 EPS for the current fiscal year.

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.

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.

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