Quantbot Technologies LP Acquires New Stake in Zscaler, Inc. $ZS

Key Points

• Quantbot Technologies acquired 17,865 Zscaler shares during the second quarter, valued at approximately $2.52 million. Institutional investors collectively own 46.45% of Zscaler.
• Zscaler’s latest quarter exceeded expectations, with adjusted EPS of $1.08 versus the $1.01 consensus and revenue of $850.48 million, up 25.4% year over year.
• Analyst sentiment remains broadly positive: 34 analysts rate the stock a Buy, six a Hold and one a Sell, producing a “Moderate Buy” consensus and an average price target of $215.36.

Quantbot Technologies LP acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 17,865 shares of the company's stock, valued at approximately $2,522,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of ZS. BlackRock Inc. bought a new stake in shares of Zscaler during the second quarter worth $1,396,028,000. First Trust Advisors LP grew its holdings in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock worth $578,576,000 after purchasing an additional 777,414 shares during the last quarter. AQR Capital Management LLC increased its stake in Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after buying an additional 741,756 shares during the period. Finally, Pictet Asset Management Holding SA increased its stake in Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock worth $269,285,000 after buying an additional 661,413 shares during the period. Hedge funds and other institutional investors own 46.45% of the company's stock.

Insider Buying and Selling

In related news, insider Robert Schlossman sold 3,146 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider owned 69,366 shares of the company's stock, valued at $8,769,943.38. This trade represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of Zscaler stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer owned 41,901 shares in the company, valued at $5,204,942.22. This trade represents a 6.68% 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. In the last quarter, insiders sold 16,269 shares of company stock valued at $2,052,589. 17.20% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on ZS shares. Needham & Company LLC reiterated a "buy" rating and set a $180.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Piper Sandler dropped their target price on shares of Zscaler from $185.00 to $160.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 27th. Rosenblatt Securities reaffirmed a "buy" rating and set a $200.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Mizuho boosted their price target on Zscaler from $185.00 to $210.00 and gave the company an "outperform" rating in a report on Wednesday, August 19th. Finally, BMO Capital Markets dropped their price objective on Zscaler from $210.00 to $178.00 and set an "outperform" 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 issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $215.36.

Zscaler Stock Performance

Shares of ZS stock opened at $181.74 on Monday. The firm has a market cap of $29.39 billion, a price-to-earnings ratio of -378.62, a PEG ratio of 106.97 and a beta of 0.94. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company's 50 day moving average is $151.10 and its 200 day moving average is $150.19.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. The company 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 revenue was up 25.4% on a year-over-year basis. During the same quarter in the prior year, the business 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. On average, sell-side analysts anticipate that Zscaler, Inc. will post 0.13 EPS for the current fiscal year.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyBanc raised its price target to $210 from a lower prior target, citing what it views as a valuation discount and potential for the cybersecurity company to regain investor confidence. KeyBanc upgrades Zscaler price target
• Positive Sentiment: Additional bullish analyst actions supported the stock. Mizuho lifted its price target to $210, Stifel Nicolaus raised its target to $200, and Cantor Fitzgerald assigned Zscaler an “Overweight” rating. The actions suggest Wall Street sees upside despite the stock’s sharp decline from its 52-week high. Mizuho raises Zscaler price target Stifel raises Zscaler price target Cantor Fitzgerald rates Zscaler Overweight
• Positive Sentiment: Rising AI-driven cyber threats reinforce demand for Zscaler’s platform. NTT DATA CEO Abhijit Dubey said frontier AI is making attacks more sophisticated, expanding the attack surface, and accelerating attacks to machine speed—an industry trend that could increase demand for cloud-based zero-trust security. AI and cybersecurity threats
• Positive Sentiment: Zscaler’s expanded Carahsoft partnership targets U.S. small and midsize businesses with standardized bundles, simpler pricing, and broader partner enablement. The initiative could diversify Zscaler’s customer base and create an additional growth channel beyond large enterprises. Zscaler and Carahsoft SMB partnership
• Negative Sentiment: AI-lab IPO speculation remains a risk to sentiment. Reports that Anthropic may pursue a massive public offering renewed concerns that investors could redirect capital from enterprise software stocks toward AI companies, contributing to recent pressure on Zscaler. Zscaler and AI IPO concerns

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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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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