Zscaler, Inc. $ZS Stock Holdings Lifted by Pallas Capital Advisors LLC

Key Points

• Pallas Capital Advisors LLC has increased its holdings in Zscaler, Inc. by 12.0%, now owning 9,346 shares valued at approximately $2.93 million.
• Other institutional investors, including T. Rowe Price Investment Management and Goldman Sachs Group, have also significantly increased their stakes in the company.
• Zscaler recently reported quarterly earnings of $0.89 EPS, surpassing analysts' expectations, with revenue growth of 21.3% year-over-year.

Pallas Capital Advisors LLC increased its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 12.0% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 9,346 shares of the company's stock after buying an additional 999 shares during the period. Pallas Capital Advisors LLC's holdings in Zscaler were worth $2,934,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. GAMMA Investing LLC grew its position in Zscaler by 43.1% during the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock valued at $127,000 after acquiring an additional 193 shares during the last quarter. Parisi Gray Wealth Management purchased a new stake in shares of Zscaler during the 2nd quarter worth approximately $801,000. Focus Partners Wealth increased its position in shares of Zscaler by 2.5% during the 1st quarter. Focus Partners Wealth now owns 62,083 shares of the company's stock valued at $12,319,000 after purchasing an additional 1,517 shares during the last quarter. Howe & Rusling Inc. raised its position in Zscaler by 17.1% during the 1st quarter. Howe & Rusling Inc. now owns 24,672 shares of the company's stock valued at $4,895,000 after purchasing an additional 3,611 shares in the last quarter. Finally, Allworth Financial LP lifted its stake in shares of Zscaler by 47.4% during the 1st quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after purchasing an additional 322 shares during the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Price Performance

Shares of NASDAQ:ZS traded up $3.16 during midday trading on Friday, hitting $294.27. The stock had a trading volume of 2,049,598 shares, compared to its average volume of 1,883,776. The company's 50-day moving average price is $280.39 and its 200-day moving average price is $257.29. The company has a market capitalization of $46.58 billion, a P/E ratio of -1,089.89 and a beta of 1.05. Zscaler, Inc. has a fifty-two week low of $164.78 and a fifty-two week high of $318.46. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The company's quarterly revenue was up 21.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, equities research analysts predict that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,865 shares of Zscaler stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $804,205.50. Following the completion of the transaction, the chief executive officer directly owned 350,700 shares of the company's stock, valued at $98,441,490. The trade was a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Adam Geller sold 10,464 shares of the company's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $284.25, for a total value of $2,974,392.00. Following the completion of the sale, the insider owned 43,478 shares in the company, valued at approximately $12,358,621.50. This represents a 19.40% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 32,878 shares of company stock valued at $9,266,002. Corporate insiders own 18.10% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Wall Street Zen raised Zscaler from a "hold" rating to a "buy" rating in a report on Sunday, September 7th. Truist Financial reissued a "buy" rating and set a $300.00 target price (up from $260.00) on shares of Zscaler in a research note on Friday, May 30th. Needham & Company LLC reaffirmed a "buy" rating and set a $350.00 price objective on shares of Zscaler in a research note on Wednesday, September 3rd. Morgan Stanley raised Zscaler from an "equal weight" rating to an "overweight" rating and increased their price target for the stock from $280.00 to $320.00 in a research note on Tuesday, September 2nd. Finally, Zacks Research downgraded Zscaler from a "hold" rating to a "strong sell" rating in a research note on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $307.00.

Zscaler Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.