T. Rowe Price Investment Management Inc. Makes New Investment in Zscaler, Inc. $ZS

Key Points

• T. Rowe Price Investment Management Inc. acquired 2,603,675 shares of Zscaler, Inc. valued at approximately $516.6 million, representing 1.68% ownership following the latest quarter.
• In a recent earnings report, Zscaler posted $678.03 million in revenue for the quarter, surpassing expectations and demonstrating a year-over-year growth of 22.6%.
• Analysts have raised their price targets for Zscaler, with a consensus average target of $296.82, indicating strong overall market confidence in the company's growth potential.

T. Rowe Price Investment Management Inc. purchased a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 2,603,675 shares of the company's stock, valued at approximately $516,622,000. T. Rowe Price Investment Management Inc. owned 1.68% of Zscaler as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors have also recently modified their holdings of ZS. Credit Agricole S A grew its stake in Zscaler by 2.8% during the first quarter. Credit Agricole S A now owns 105,511 shares of the company's stock worth $20,935,000 after buying an additional 2,909 shares in the last quarter. MIG Capital LLC grew its stake in shares of Zscaler by 146.4% in the first quarter. MIG Capital LLC now owns 4,497 shares of the company's stock worth $892,000 after purchasing an additional 2,672 shares during the last quarter. Fairscale Capital LLC acquired a new stake in shares of Zscaler in the first quarter valued at about $61,000. Brooklyn Investment Group increased its position in Zscaler by 15.7% during the 1st quarter. Brooklyn Investment Group now owns 745 shares of the company's stock valued at $148,000 after purchasing an additional 101 shares during the period. Finally, Versor Investments LP acquired a new position in Zscaler in the first quarter valued at $353,000. 46.45% of the stock is currently owned by institutional investors.

Insider Transactions at Zscaler

In related news, insider Adam Geller sold 3,662 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the completion of the transaction, the insider owned 46,813 shares in the company, valued at $14,358,483.36. This represents a 7.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Robert Schlossman sold 4,618 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $300.00, for a total transaction of $1,385,400.00. Following the completion of the transaction, the insider owned 95,612 shares of the company's stock, valued at $28,683,600. This trade represents a 4.61% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 168,256 shares of company stock valued at $50,618,544. Company insiders own 18.10% of the company's stock.

Zscaler Trading Up 0.8%

Shares of ZS stock traded up $2.17 during trading hours on Friday, hitting $272.52. 882,582 shares of the company's stock were exchanged, compared to its average volume of 1,444,461. The company has a market capitalization of $42.43 billion, a PE ratio of -1,048.15, a PEG ratio of 288.37 and a beta of 1.06. The business's 50 day simple moving average is $292.37 and its 200-day simple moving average is $246.55. Zscaler, Inc. has a 12-month low of $153.45 and a 12-month high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The firm had revenue of $678.03 million for the quarter, compared to analysts' expectations of $667.13 million. During the same period last year, the firm earned $0.88 earnings per share. The company's revenue for the quarter was up 22.6% compared to the same quarter last year. Zscaler has set its FY 2025 guidance at 3.180-3.19 EPS. Q4 2025 guidance at EPS. Equities analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current year.

Wall Street Analysts Forecast Growth

ZS has been the subject of a number of research reports. Morgan Stanley raised their price target on shares of Zscaler from $200.00 to $280.00 and gave the stock an "equal weight" rating in a report on Friday, May 30th. Susquehanna upped their price target on Zscaler from $245.00 to $320.00 and gave the stock a "positive" rating in a report on Friday, May 30th. Royal Bank Of Canada increased their price objective on shares of Zscaler from $288.00 to $304.00 and gave the company an "outperform" rating in a research note on Friday, May 30th. Stephens reiterated an "overweight" rating and set a $255.00 target price on shares of Zscaler in a research note on Tuesday, May 27th. Finally, BNP Paribas upgraded Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price objective on the stock in a research note on Monday, April 28th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Zscaler currently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

Zscaler Company 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.