Spear Advisors LLC Invests $3.46 Million in Zscaler, Inc. $ZS

Key Points

• Spear Advisors LLC opened a new position in Zscaler, buying 15,382 shares worth about $3.46 million. The stake makes up 2.4% of its portfolio and is its 18th-largest holding.
• Other institutional investors also increased or initiated positions in Zscaler, and overall 46.45% of the stock is owned by hedge funds and other institutions.
• Wall Street remains broadly positive on Zscaler, with analysts assigning a Moderate Buy consensus and an average price target of $261.26, even as several firms trimmed their targets.

Spear Advisors LLC acquired a new position in Zscaler, Inc. (NASDAQ:ZS - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 15,382 shares of the company's stock, valued at approximately $3,460,000. Zscaler comprises 2.4% of Spear Advisors LLC's investment portfolio, making the stock its 18th biggest holding.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. EMC Capital Management raised its stake in shares of Zscaler by 779.1% in the fourth quarter. EMC Capital Management now owns 3,780 shares of the company's stock worth $819,000 after purchasing an additional 3,350 shares during the last quarter. Worthington Financial Partners LLC purchased a new stake in shares of Zscaler during the fourth quarter valued at approximately $720,000. Sentinel Dome Partners LLC purchased a new stake in shares of Zscaler during the fourth quarter valued at approximately $990,000. Ovata Capital Management Ltd purchased a new stake in shares of Zscaler during the fourth quarter valued at approximately $873,000. Finally, Reflection Asset Management purchased a new stake in shares of Zscaler during the fourth quarter valued at approximately $40,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

ZS has been the subject of a number of research analyst reports. Rosenblatt Securities decreased their price target on Zscaler from $250.00 to $223.00 and set a "buy" rating for the company in a research report on Monday. Citizens Jmp decreased their price target on Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a research report on Friday, May 1st. Berenberg Bank decreased their price target on Zscaler from $390.00 to $320.00 and set a "buy" rating for the company in a research report on Friday, February 27th. BTIG Research reaffirmed a "neutral" rating on shares of Zscaler in a research report on Thursday, April 9th. Finally, BMO Capital Markets decreased their target price on Zscaler from $315.00 to $210.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Zscaler has an average rating of "Moderate Buy" and a consensus target price of $261.26.

Zscaler Stock Performance

Zscaler stock opened at $174.45 on Thursday. The stock's 50 day simple moving average is $143.66 and its two-hundred day simple moving average is $196.87. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The stock has a market cap of $28.05 billion, a price-to-earnings ratio of -415.36 and a beta of 0.96. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million for the quarter, compared to analysts' expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business's revenue was up 25.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Adam Geller sold 2,094 shares of the company's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the transaction, the insider owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 12,130 shares of company stock valued at $1,892,487. Company 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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