Rheos Capital Works Inc. Invests $28.57 Million in Zscaler, Inc. $ZS

Key Points

• Rheos Capital Works Inc. has invested approximately $28.57 million in Zscaler, acquiring 91,000 shares, which represents about 1.6% of its total holdings.
• In its latest earnings report, Zscaler beat analyst expectations with $0.89 earnings per share and a revenue of $719.23 million, up 21.3% year-over-year.
• Wall Street analysts have varied price targets for Zscaler, with the average target set at $307.43, indicating a consensus rating of "Moderate Buy".

Rheos Capital Works Inc. acquired a new stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 91,000 shares of the company's stock, valued at approximately $28,569,000. Zscaler accounts for about 1.6% of Rheos Capital Works Inc.'s holdings, making the stock its 19th largest position. Rheos Capital Works Inc. owned approximately 0.06% of Zscaler at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. ORG Partners LLC lifted its holdings in shares of Zscaler by 284.8% in the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after acquiring an additional 94 shares during the last quarter. SVB Wealth LLC acquired a new stake in Zscaler in the 1st quarter valued at approximately $26,000. Goodman Advisory Group LLC purchased a new stake in Zscaler in the first quarter valued at approximately $29,000. N.E.W. Advisory Services LLC purchased a new stake in Zscaler in the first quarter valued at approximately $29,000. Finally, Exane Asset Management lifted its stake in Zscaler by 185.7% during the second quarter. Exane Asset Management now owns 100 shares of the company's stock worth $31,000 after purchasing an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Trading Down 3.6%

NASDAQ ZS opened at $301.80 on Wednesday. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95. Zscaler, Inc. has a 52 week low of $164.78 and a 52 week high of $319.89. The stock has a market capitalization of $47.77 billion, a PE ratio of -1,117.78 and a beta of 1.06. The firm has a 50 day moving average of $285.21 and a two-hundred day moving average of $268.76.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. The business had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The company's revenue was up 21.3% on a year-over-year basis. During the same period last year, the business earned $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, research analysts expect that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ZS. Scotiabank cut their price objective on Zscaler from $360.00 to $334.00 and set a "sector outperform" rating on the stock in a report on Wednesday, September 3rd. Royal Bank Of Canada lifted their target price on Zscaler from $335.00 to $350.00 and gave the company an "outperform" rating in a research report on Thursday, October 2nd. Guggenheim reissued a "neutral" rating on shares of Zscaler in a research report on Wednesday, September 3rd. JMP Securities reissued a "market outperform" rating and issued a $355.00 price objective on shares of Zscaler in a research note on Wednesday, September 3rd. Finally, UBS Group dropped their price objective on shares of Zscaler from $365.00 to $350.00 and set a "buy" rating for the company in a report on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $307.43.

Insiders Place Their Bets

In related news, insider Adam Geller sold 10,464 shares of the business's stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $284.25, for a total transaction of $2,974,392.00. Following the completion of the sale, the insider owned 43,478 shares in the company, valued at $12,358,621.50. The trade was a 19.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,865 shares of the company's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $804,205.50. Following the completion of the transaction, the chief executive officer directly owned 350,700 shares of the company's stock, valued at $98,441,490. This trade represents a 0.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 39,884 shares of company stock valued at $11,406,825 over the last quarter. Corporate insiders own 18.10% of the company's stock.

Zscaler Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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