Sumitomo Mitsui Trust Group Inc. Has $33.67 Million Stock Holdings in Zscaler, Inc. $ZS

Key Points

• Sumitomo Mitsui Trust Group trimmed its Zscaler stake by 4.4% in the first quarter, but still held 240,018 shares valued at about $33.67 million.
• Zscaler reported stronger-than-expected quarterly results, posting $1.08 EPS and $850.48 million in revenue, with revenue rising 25.4% year over year.
• Insiders sold shares recently, including CEO Jagtar Singh Chaudhry and insider Robert Schlossman, while analysts remain broadly positive with a consensus rating of Moderate Buy and a $213.97 price target.

Sumitomo Mitsui Trust Group Inc. decreased its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 4.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 240,018 shares of the company's stock after selling 10,942 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.15% of Zscaler worth $33,672,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of ZS. Binnacle Investments Inc acquired a new stake in Zscaler during the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC purchased a new stake in shares of Zscaler during the 4th quarter worth about $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler during the 4th quarter valued at about $30,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler during the 4th quarter valued at about $32,000. Finally, Family CFO Inc bought a new stake in shares of Zscaler in the 4th quarter valued at approximately $34,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 shares were 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 in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 15,766 shares of company stock worth $1,978,587. 17.20% of the stock is owned by insiders.

Zscaler Stock Up 1.8%

Shares of Zscaler stock opened at $141.82 on Tuesday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a 50 day moving average price of $143.62 and a two-hundred day moving average price of $161.44. The stock has a market capitalization of $22.93 billion, a P/E ratio of -295.45, a PEG ratio of 79.81 and a beta of 0.96.

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, beating analysts' consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company's quarterly revenue was up 25.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities analysts expect that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of analysts have issued reports on ZS shares. Robert W. Baird reduced their target price on shares of Zscaler from $265.00 to $230.00 and set an "outperform" rating for the company in a research note on Wednesday, May 27th. BMO Capital Markets dropped their price target on shares of Zscaler from $210.00 to $178.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Wedbush restated an "outperform" rating and set a $220.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $200.00 price objective on shares of Zscaler in a research note on Wednesday, June 10th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Zscaler from $250.00 to $205.00 and set an "overweight" 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 given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $213.97.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.