Renaissance Technologies LLC Raises Position in Zscaler, Inc. $ZS

Key Points

• Renaissance Technologies more than doubled its Zscaler stake in the first quarter, adding 122,160 shares to own 230,460 shares valued at approximately $32.3 million. Institutional investors collectively hold 46.45% of Zscaler.
• Zscaler reported quarterly earnings of $1.08 per share, beating estimates of $1.01, while revenue rose 25.4% year over year to $850.48 million. The company provided fiscal 2026 earnings guidance of $4.10–$4.11 per share.
• Analysts maintain a generally positive outlook, with 34 Buy, six Hold and one Sell rating, producing a consensus “Moderate Buy” rating and a $214.21 price target. Shares recently opened at $151.63, while insiders have sold shares primarily to cover tax obligations tied to equity awards.

Renaissance Technologies LLC boosted its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 112.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 230,460 shares of the company's stock after purchasing an additional 122,160 shares during the period. Renaissance Technologies LLC owned approximately 0.14% of Zscaler worth $32,331,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Binnacle Investments Inc purchased a new stake in Zscaler during the 3rd quarter valued at about $25,000. AlphaCentric Advisors LLC bought a new position in Zscaler during the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler in the 4th quarter worth approximately $30,000. Mcguire Capital Advisors Inc. purchased a new position in Zscaler in the 4th quarter worth approximately $32,000. Finally, Family CFO Inc bought a new stake in Zscaler in the fourth quarter valued at approximately $34,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the 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 completion of the transaction, the insider directly owned 69,366 shares of the company's stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 16,269 shares of company stock valued at $2,052,589. 17.20% of the stock is currently owned by company insiders.

Zscaler Price Performance

Shares of Zscaler stock opened at $151.63 on Wednesday. The business has a 50 day moving average of $142.04 and a 200 day moving average of $155.30. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market cap of $24.52 billion, a PE ratio of -315.89, a P/E/G ratio of 84.41 and a beta of 0.96. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted $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. As a group, equities research analysts forecast that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ZS. Rosenblatt Securities reissued a "buy" rating and set a $200.00 price objective on shares of Zscaler in a research note on Wednesday, June 10th. HC Wainwright upgraded shares of Zscaler from a "buy" rating to a "buy" rating in a report on Monday, May 18th. UBS Group dropped their price target on shares of Zscaler from $260.00 to $225.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Royal Bank Of Canada reissued an "outperform" rating and issued a $200.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $179.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Zscaler has a consensus rating of "Moderate Buy" and a consensus price target of $214.21.

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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