Quantitative Investment Management LLC Raises Stake in Zscaler, Inc. $ZS

Quantitative Investment Management LLC lifted its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 23.1% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 39,631 shares of the company's stock after purchasing an additional 7,430 shares during the period. Quantitative Investment Management LLC's holdings in Zscaler were worth $5,593,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in ZS. BlackRock Inc. bought a new position in Zscaler in the 2nd quarter worth about $1,396,028,000. First Trust Advisors LP boosted 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 valued at $493,635,000 after purchasing an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD boosted 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 valued at $578,576,000 after purchasing an additional 777,414 shares during the period. AQR Capital Management LLC grew its stake in Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after purchasing an additional 741,756 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in Zscaler during the 2nd quarter worth $102,271,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Insider Activity

In other news, 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 value of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total transaction of $372,660.00. Following the transaction, the chief financial officer owned 41,901 shares of the company's stock, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 16,772 shares of company stock valued at $2,139,799. Company insiders own 17.20% of the company's stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: J.P. Morgan initiated or reiterated a Buy rating on Zscaler and raised its price target to $215 from $205, suggesting meaningful upside and confidence in the company’s long-term cloud-security growth. Zscaler gets a Buy from J.P. Morgan
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing for research into self-improving artificial-intelligence models. The investment could strengthen Zscaler’s exposure to enterprise AI, although it is unlikely to materially affect near-term earnings. Deep Cogito raises $43 million Series A
• Positive Sentiment: A broader cybersecurity re-rating has lifted previously lagging stocks, with Zscaler benefiting from increased investor interest in security software and AI-related growth. The move was accompanied by a strong gain in the First Trust NASDAQ Cybersecurity ETF. Cybersecurity re-rating reaches lagging stocks
• Neutral Sentiment: Zscaler is expected to report quarterly results on Thursday. Its prior quarter featured a revenue and adjusted EPS beat, with revenue up 25.4% year over year, but investors will look for sustained billings, guidance, and AI-driven demand before extending the recent rally. Zscaler expected to announce quarterly earnings
• Neutral Sentiment: The broader market may remain sensitive to next week’s August jobs report and its implications for Federal Reserve policy, interest rates, and valuation multiples for high-growth technology stocks. August jobs report takes center stage
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only about 1.2%, making it a limited sentiment concern rather than a fundamental warning. Zscaler CFO sells stock

Zscaler Stock Performance

Shares of NASDAQ ZS opened at $184.23 on Monday. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The business has a fifty day moving average price of $156.19 and a 200 day moving average price of $150.23. The stock has a market capitalization of $29.79 billion, a P/E ratio of -383.80, a price-to-earnings-growth ratio of 108.43 and a beta of 0.94. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86.

Wall Street Analyst Weigh In

Several brokerages have weighed in on ZS. Barclays upped their target price on Zscaler from $170.00 to $192.00 and gave the stock an "overweight" rating in a report on Tuesday, August 25th. Citigroup restated a "market outperform" rating on shares of Zscaler in a report on Wednesday, May 27th. Mizuho upped their price objective on shares of Zscaler from $185.00 to $210.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 19th. Needham & Company LLC reissued a "buy" rating and set a $180.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Scotiabank reduced their price target on shares of Zscaler from $190.00 to $175.00 and set a "sector outperform" rating for the company in a report 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 assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $216.18.

About Zscaler

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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