Sterling Investment Advisors Ltd. Lowers Stock Holdings in Zscaler, Inc. $ZS

Key Points

• Sterling Investment Advisors Ltd. has reduced its stake in Zscaler by 10.6%, now owning 11,240 shares valued at $3,529,000.
• Zscaler reported quarterly earnings of $0.89 EPS, surpassing analyst expectations of $0.80, with revenue of $719.23 million.
• Analysts have increased price targets for Zscaler, with new targets ranging from $290.00 to $340.00, reflecting a consensus rating of "Moderate Buy."

Sterling Investment Advisors Ltd. lowered its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 10.6% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 11,240 shares of the company's stock after selling 1,328 shares during the period. Sterling Investment Advisors Ltd.'s holdings in Zscaler were worth $3,529,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the stock. Parisi Gray Wealth Management acquired a new position in Zscaler in the 2nd quarter valued at $801,000. GAMMA Investing LLC boosted its holdings in shares of Zscaler by 43.1% in the first quarter. GAMMA Investing LLC now owns 641 shares of the company's stock valued at $127,000 after acquiring an additional 193 shares in the last quarter. Howe & Rusling Inc. boosted its holdings in shares of Zscaler by 17.1% in the first quarter. Howe & Rusling Inc. now owns 24,672 shares of the company's stock valued at $4,895,000 after acquiring an additional 3,611 shares in the last quarter. Focus Partners Wealth increased its stake in shares of Zscaler by 2.5% during the first quarter. Focus Partners Wealth now owns 62,083 shares of the company's stock worth $12,319,000 after acquiring an additional 1,517 shares during the period. Finally, Allworth Financial LP raised its holdings in Zscaler by 47.4% during the first quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after purchasing an additional 322 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Stock Performance

NASDAQ ZS opened at $296.90 on Tuesday. 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 fifty-two week low of $164.78 and a fifty-two week high of $318.46. The business has a fifty day moving average of $280.63 and a 200-day moving average of $261.56. The stock has a market cap of $47.00 billion, a price-to-earnings ratio of -1,099.63 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The firm had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. During the same quarter last year, the business posted $0.88 EPS. The firm's quarterly revenue was up 21.3% compared to the same quarter last year. 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, analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wall Street Zen raised Zscaler from a "hold" rating to a "buy" rating in a report on Sunday, September 7th. Mizuho lifted their price target on Zscaler from $275.00 to $290.00 and gave the company a "neutral" rating in a research note on Wednesday, June 4th. BMO Capital Markets increased their price objective on Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 3rd. Stifel Nicolaus raised their target price on Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Finally, Canaccord Genuity Group upped their price target on shares of Zscaler from $320.00 to $340.00 and gave the stock a "buy" rating in a research note on Thursday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $307.00.

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total transaction of $804,205.50. Following the transaction, the chief executive officer owned 350,700 shares of the company's stock, valued at $98,441,490. This represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Raj Judge sold 4,524 shares of Zscaler stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the completion of the sale, the executive vice president directly owned 73,832 shares of the company's stock, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 32,878 shares of company stock worth $9,266,002. 18.10% of the stock is currently owned by corporate insiders.

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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