SG Americas Securities LLC Decreases Stock Position in Zscaler, Inc. $ZS

Key Points

• SG Americas Securities LLC reduced its Zscaler stake by 27.9% in the first quarter, selling 32,398 shares and ending with 83,730 shares valued at about $11.7 million.
• Insider selling continued, with CEO Jagtar Singh Chaudhry and insider Robert Schlossman both selling shares in June to cover tax withholding obligations tied to equity award vesting.
• Zscaler’s latest results beat expectations, with quarterly EPS of $1.08 and revenue of $850.5 million, while analysts remain mostly bullish with a consensus “Moderate Buy” rating and an average target price of $213.97.

SG Americas Securities LLC cut its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 27.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 83,730 shares of the company's stock after selling 32,398 shares during the quarter. SG Americas Securities LLC owned about 0.05% of Zscaler worth $11,746,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Binnacle Investments Inc purchased a new stake in Zscaler in the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler during the fourth quarter valued at about $29,000. Picton Mahoney Asset Management purchased a new stake in Zscaler during the third quarter valued at about $30,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler during the fourth quarter worth about $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler in the fourth quarter worth about $32,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Insider Activity

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business'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 $363,865.54. Following the completion of the transaction, the chief executive officer directly 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 transaction 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 business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider 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. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 15,644 shares of company stock worth $1,960,287. Company insiders own 17.20% of the company's stock.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $132.26 on Friday. The company has a 50 day moving average of $141.59 and a 200 day moving average of $168.93. The stock has a market cap of $21.39 billion, a P/E ratio of -275.54, a P/E/G ratio of 77.40 and a beta of 0.97. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.14 million. During the same period in the prior year, the company posted $0.84 EPS. The business's revenue for the quarter was up 25.4% compared to the same quarter last year. 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, sell-side analysts forecast that Zscaler, Inc. will post 0.11 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on ZS. KeyCorp lowered their price target on shares of Zscaler from $190.00 to $176.00 and set an "overweight" rating on the stock in a research report on Thursday. Stephens reiterated an "overweight" rating and issued a $200.00 price objective on shares of Zscaler in a research note on Friday, June 12th. Wedbush reissued an "outperform" rating and set a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Morgan Stanley dropped their target price on Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a research report on Wednesday, May 27th. Finally, Stifel Nicolaus cut their price target on Zscaler from $180.00 to $175.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Thirty-four 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 stock has an average rating of "Moderate Buy" and a consensus target price of $213.97.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy, and race data. Article Title
• Positive Sentiment: Zscaler CEO Jay Chaudhry highlighted AI as a major cybersecurity opportunity, reinforcing the company’s positioning in a fast-growing market. Article Title
• Positive Sentiment: Another report said AI could create the biggest cybersecurity opportunity in years, which supports the investment case for Zscaler’s AI-era security platform. Article Title
• Neutral Sentiment: Market commentary noted Zscaler had only a modest post-earnings move, suggesting traders are still assessing the company’s near-term outlook. Article Title
• Neutral Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which may add headline risk but does not by itself confirm wrongdoing. Article Title
• Negative Sentiment: Zscaler CFO Kevin Rubin sold 3,000 shares under a pre-arranged trading plan, which can still weigh on sentiment even though the sale was routine. Article Title

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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