OP Asset Management Ltd Takes Position in Zscaler, Inc. $ZS

Key Points

• OP Asset Management Ltd opened a new position in Zscaler during the first quarter, buying 10,443 shares worth about $1.465 million.
• Zscaler reported better-than-expected quarterly results, posting $1.08 EPS versus the $1.01 estimate and revenue of $850.48 million, up 25.4% year over year.
• Analysts remain generally positive despite recent target cuts, with 34 Buy ratings and an average target price of $213.97; however, insiders have recently sold shares, including the CEO and another executive.

OP Asset Management Ltd purchased a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 10,443 shares of the company's stock, valued at approximately $1,465,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Binnacle Investments Inc purchased a new stake in Zscaler in the 3rd quarter valued at about $25,000. Picton Mahoney Asset Management purchased a new position in shares of Zscaler in the 3rd quarter worth approximately $30,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler in the fourth quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler in the fourth quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler during the fourth quarter valued at approximately $32,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Trading Up 4.0%

Shares of ZS opened at $137.60 on Tuesday. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The business has a 50-day moving average of $141.65 and a 200 day moving average of $167.66. The firm has a market cap of $22.25 billion, a P/E ratio of -286.66, a price-to-earnings-growth ratio of 82.69 and a beta of 0.97. 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 (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS 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 company's revenue was up 25.4% compared to the same quarter last year. During the same period in the prior 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, research analysts forecast that Zscaler, Inc. will post 0.11 EPS for the current year.

Insider Buying and Selling at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 343,038 shares in the company, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their position. The sale was disclosed in a 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, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 15,644 shares of company stock valued at $1,960,287. 17.20% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of analysts recently commented on ZS shares. Citizens Jmp dropped their price target on Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a report on Friday, May 1st. Wolfe Research reissued an "outperform" rating and issued a $150.00 price target on shares of Zscaler in a report on Thursday, June 11th. BMO Capital Markets decreased their price objective on shares of Zscaler from $210.00 to $178.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Evercore set a $155.00 price objective on shares of Zscaler and gave the stock an "in-line" rating in a research report on Wednesday, May 27th. Finally, Barclays dropped their target price on shares of Zscaler from $180.00 to $170.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zscaler currently has an average rating of "Moderate Buy" and an average target price of $213.97.

Zscaler Company 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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