Qsemble Capital Management LP Increases Stock Position in Zscaler, Inc. $ZS

Key Points

• Qsemble Capital Management LP more than doubled its Zscaler stake in the fourth quarter, increasing its position by 105.5% to 15,773 shares valued at about $3.55 million.
• Zscaler reported better-than-expected fiscal Q4 results, with EPS of $1.01 versus $0.89 expected and revenue of $815.75 million, up 25.9% year over year.
• Despite recent insider selling and mixed analyst moves, Wall Street still has a Moderate Buy consensus on Zscaler, with an average target price of $263.46.

Qsemble Capital Management LP raised its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 105.5% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 15,773 shares of the company's stock after acquiring an additional 8,099 shares during the quarter. Qsemble Capital Management LP's holdings in Zscaler were worth $3,548,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. raised its position in Zscaler by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock valued at $2,569,357,000 after purchasing an additional 55,521 shares during the last quarter. Groupama Asset Managment grew its position in shares of Zscaler by 76,352.6% in the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after buying an additional 4,743,787 shares during the last quarter. State Street Corp increased its stake in shares of Zscaler by 4.5% during the third quarter. State Street Corp now owns 2,259,804 shares of the company's stock valued at $677,173,000 after buying an additional 97,366 shares during the period. First Trust Advisors LP increased its stake in shares of Zscaler by 9.5% during the third quarter. First Trust Advisors LP now owns 2,228,134 shares of the company's stock valued at $667,682,000 after buying an additional 193,281 shares during the period. Finally, AQR Capital Management LLC boosted its holdings in Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after acquiring an additional 741,756 shares in the last quarter. 46.45% of the stock is owned by institutional investors.

Zscaler Stock Up 4.8%

ZS stock opened at $161.05 on Friday. The business has a 50 day moving average of $142.95 and a 200 day moving average of $200.91. The firm has a market cap of $25.90 billion, a PE ratio of -383.45 and a beta of 0.96. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same period in the previous year, the company posted $0.78 earnings per share. The company's revenue for the quarter was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, research analysts forecast that Zscaler, Inc. will post -0.03 EPS for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the firm's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares in the company, valued at approximately $673,075.52. This trade represents a 3.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares of the company's stock, valued at $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 in the last ninety days. 17.20% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research analysts have commented on ZS shares. BMO Capital Markets decreased their price objective on shares of Zscaler from $315.00 to $210.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Zacks Research downgraded shares of Zscaler from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 29th. Needham & Company LLC cut their price objective on Zscaler from $310.00 to $180.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Stephens reduced their target price on Zscaler from $340.00 to $225.00 and set an "overweight" rating on the stock in a report on Monday, February 23rd. Finally, KeyCorp decreased their target price on Zscaler from $220.00 to $160.00 and set an "overweight" rating for the company in a research report on Wednesday, April 15th. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Zscaler has a consensus rating of "Moderate Buy" and a consensus target price of $263.46.

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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