Saba Capital Management L.P. Invests $1.26 Million in Zscaler, Inc. $ZS

Key Points

• Saba Capital Management acquired 9,009 Zscaler shares in the first quarter, valued at approximately $1.26 million. Institutional investors and hedge funds collectively own 46.45% of the company.
• Zscaler’s latest quarterly results exceeded expectations, with adjusted EPS of $1.08 versus the $1.01 consensus estimate and revenue of $850.48 million, up 25.4% year over year.
• Analysts maintain a broadly positive view, with 34 Buy ratings, six Holds and one Sell, producing a “Moderate Buy” consensus and an average price target of $214.21 versus the stock’s $147.30 opening price.

Saba Capital Management L.P. acquired a new stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 9,009 shares of the company's stock, valued at approximately $1,264,000.

A number of other institutional investors have also recently made changes to their positions in the business. Binnacle Investments Inc acquired a new position in Zscaler during the 3rd quarter valued at about $25,000. AlphaCentric Advisors LLC acquired a new stake in Zscaler in the fourth quarter worth about $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Zscaler in the fourth quarter worth about $30,000. Mcguire Capital Advisors Inc. acquired a new stake in Zscaler in the fourth quarter worth about $32,000. Finally, Family CFO Inc purchased a new stake in shares of Zscaler during the fourth quarter worth about $34,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Analyst Ratings Changes

A number of research firms recently commented on ZS. Needham & Company LLC reiterated a "buy" rating and issued a $180.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Evercore set a $155.00 price target on shares of Zscaler and gave the company an "in-line" rating in a research note on Wednesday, May 27th. Piper Sandler cut their price target 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. Robert W. Baird decreased their price target on shares of Zscaler from $265.00 to $230.00 and set an "outperform" rating for the company in a report on Wednesday, May 27th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $200.00 price objective on shares of Zscaler in a research note on Wednesday, June 10th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $214.21.

Zscaler Trading Up 3.5%

Zscaler stock opened at $147.30 on Tuesday. 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, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market capitalization of $23.82 billion, a price-to-earnings ratio of -306.87, a price-to-earnings-growth ratio of 81.56 and a beta of 0.96. The stock has a 50-day moving average price of $142.51 and a 200 day moving average price of $155.86.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same quarter in the prior year, the firm earned $0.84 earnings per share. Zscaler's revenue for the quarter was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts anticipate that Zscaler, Inc. will post 0.12 EPS for the current year.

Insider Buying and Selling at Zscaler

In other news, insider Robert Schlossman sold 3,146 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the sale, the insider owned 69,366 shares in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business's stock in a transaction on 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 of the company's stock, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 15,766 shares of company stock valued at $1,978,587 over the last quarter. Insiders own 17.20% of the company's stock.

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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