Strs Ohio Sells 7,004 Shares of Zscaler, Inc. $ZS

Key Points

• Strs Ohio cut its Zscaler stake by 34.3% in the first quarter, selling 7,004 shares and ending with 13,389 shares valued at about $1.88 million.
• Zscaler beat quarterly expectations, reporting EPS of $1.08 versus the $1.01 consensus and revenue of $850.48 million, up 25.4% year over year.
• Wall Street remains mostly bullish on ZS, with 34 Buy ratings and a consensus “Moderate Buy” target price of $213.97, even as the stock traded down 0.8% to $149.22 in recent trading.

Strs Ohio trimmed its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 34.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 13,389 shares of the company's stock after selling 7,004 shares during the quarter. Strs Ohio's holdings in Zscaler were worth $1,878,000 at the end of the most recent reporting period.

A number of other hedge funds also recently made changes to their positions in ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler during the 3rd quarter worth approximately $25,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler in the fourth quarter valued at $29,000. Picton Mahoney Asset Management purchased a new position in shares of Zscaler in the third quarter valued at $30,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler in the fourth quarter worth $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in Zscaler in the fourth quarter worth $32,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on ZS shares. Needham & Company LLC reiterated a "buy" rating and set a $180.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Guggenheim restated a "buy" rating and issued a $214.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Barclays decreased their target price on shares of Zscaler from $180.00 to $170.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 27th. Wolfe Research reaffirmed an "outperform" rating and issued a $150.00 price target on shares of Zscaler in a report on Thursday, June 11th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $200.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Thirty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $213.97.

Zscaler Trading Down 0.8%

Shares of ZS traded down $1.20 during midday trading on Tuesday, hitting $149.22. The stock had a trading volume of 461,169 shares, compared to its average volume of 3,624,013. The stock's 50 day moving average is $142.61 and its 200 day moving average is $164.47. The firm has a market cap of $24.13 billion, a PE ratio of -309.74, a price-to-earnings-growth ratio of 92.12 and a beta of 0.96. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99.

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

Insiders Place Their Bets

In other news, 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 completion of the sale, the chief executive officer directly owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 company'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 $397,748.78. Following the completion of the transaction, 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 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 have sold 15,644 shares of company stock worth $1,960,287 over the last three months. 17.20% of the stock is currently owned by corporate insiders.

Zscaler 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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