Parcion Private Wealth LLC Makes New Investment in Zscaler, Inc. $ZS

Key Points

• Parcion Private Wealth acquired 4,286 Zscaler shares worth approximately $855,000 in the third quarter. Institutional investors and hedge funds collectively own 46.45% of Zscaler.
• Zscaler reported quarterly EPS of $1.19, beating estimates of $1.09, while revenue rose 24.9% year over year to $898.19 million, ahead of expectations.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $236.65; however, insiders have sold more than 54,000 shares worth about $11.3 million over the past 90 days.

Parcion Private Wealth LLC acquired a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 4,286 shares of the company's stock, valued at approximately $855,000.

Several other hedge funds have also made changes to their positions in ZS. BlackRock Inc. purchased a new position in Zscaler during the second quarter worth about $1,396,028,000. First Trust Advisors LP boosted its stake in Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after buying an additional 935,781 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler in the 2nd quarter worth about $102,271,000. Legal & General Group Plc acquired a new stake in Zscaler in the 2nd quarter worth about $89,740,000. Finally, Bank of New York Mellon Corp purchased a new stake in Zscaler in the 2nd quarter valued at about $66,406,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Stock Performance

NASDAQ ZS opened at $237.83 on Friday. The firm has a market capitalization of $38.78 billion, a P/E ratio of -609.82, a P/E/G ratio of 22.61 and a beta of 0.94. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The business's 50-day simple moving average is $204.19 and its 200-day simple moving average is $167.61.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company's revenue was up 24.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities analysts predict that Zscaler, Inc. will post 0.70 EPS for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Adam Geller sold 1,042 shares of the business's stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $235.95, for a total transaction of $245,859.90. Following the completion of the sale, the insider directly owned 38,308 shares in the company, valued at $9,038,772.60. The trade was a 2.65% 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. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 514 shares of the stock in a transaction on Monday, October 26th. The stock was sold at an average price of $259.15, for a total transaction of $133,203.10. Following the completion of the sale, the chief financial officer directly owned 62,113 shares of the company's stock, valued at $16,096,583.95. The trade was a 0.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 54,064 shares of company stock valued at $11,316,078 in the last ninety days. Corporate insiders own 17.20% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. Stephens upped their price objective on shares of Zscaler from $225.00 to $265.00 and gave the company an "overweight" rating in a research note on Wednesday, October 7th. Morgan Stanley raised their target price on shares of Zscaler from $165.00 to $185.00 and gave the stock an "equal weight" rating in a research report on Wednesday, October 7th. BTIG Research restated a "neutral" rating on shares of Zscaler in a report on Wednesday, October 7th. Freedom Broker boosted their target price on shares of Zscaler from $230.00 to $270.00 and gave the company a "buy" rating in a report on Thursday, October 22nd. Finally, Canaccord Genuity Group upped their price target on shares of Zscaler from $210.00 to $250.00 and gave the stock a "buy" rating in a research report on Wednesday, October 7th. Thirty-six analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $236.65.

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization's network to users.

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