Two Sigma Securities LLC Acquires 7,689 Shares of Zscaler, Inc. $ZS

Key Points

• Two Sigma Securities increased its Zscaler stake by 165.7% in the second quarter, adding 7,689 shares to own 12,328 shares valued at approximately $1.74 million. Institutional investors collectively own 46.45% of Zscaler.
• Analyst sentiment remains favorable, with 34 Buy ratings, six Holds and one Sell; Zscaler has a consensus “Moderate Buy” rating and an average price target of $216.18.
• Zscaler shares opened at $184.23, while recent insider sales totaled 16,772 shares worth about $2.14 million. The company’s stock remains well below its 12-month high of $336.99 and carries elevated valuation metrics, including a negative P/E ratio.

Two Sigma Securities LLC increased its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 165.7% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 12,328 shares of the company's stock after buying an additional 7,689 shares during the period. Two Sigma Securities LLC's holdings in Zscaler were worth $1,740,000 at the end of the most recent quarter.

Other institutional investors have also recently added to or reduced their stakes in the company. Binnacle Investments Inc bought a new position in shares of Zscaler during the third quarter valued at $25,000. AlphaCentric Advisors LLC bought a new stake in shares of Zscaler in the fourth quarter worth $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zscaler in the fourth quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new stake in Zscaler in the fourth quarter valued at $32,000. Finally, Western Wealth Management LLC acquired a new stake in Zscaler in the first quarter valued at $33,000. 46.45% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts have commented on ZS shares. TD Cowen lifted their target price on Zscaler from $180.00 to $200.00 and gave the stock a "buy" rating in a report on Monday, August 17th. Canaccord Genuity Group reissued a "buy" rating and issued a $210.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Morgan Stanley lowered their price objective on Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 27th. Mizuho lifted their price objective on Zscaler from $185.00 to $210.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 19th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $200.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $216.18.

Insider Activity at Zscaler

In other news, insider Adam Geller sold 2,817 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. This represents a 6.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm'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 $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This represents a 0.83% 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 three months, insiders have sold 16,772 shares of company stock valued at $2,139,799. Company insiders own 17.20% of the company's stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: J.P. Morgan initiated or reiterated a Buy rating on Zscaler and raised its price target to $215 from $205, suggesting meaningful upside and confidence in the company’s long-term cloud-security growth. Zscaler gets a Buy from J.P. Morgan
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing for research into self-improving artificial-intelligence models. The investment could strengthen Zscaler’s exposure to enterprise AI, although it is unlikely to materially affect near-term earnings. Deep Cogito raises $43 million Series A
• Positive Sentiment: A broader cybersecurity re-rating has lifted previously lagging stocks, with Zscaler benefiting from increased investor interest in security software and AI-related growth. The move was accompanied by a strong gain in the First Trust NASDAQ Cybersecurity ETF. Cybersecurity re-rating reaches lagging stocks
• Neutral Sentiment: Zscaler is expected to report quarterly results on Thursday. Its prior quarter featured a revenue and adjusted EPS beat, with revenue up 25.4% year over year, but investors will look for sustained billings, guidance, and AI-driven demand before extending the recent rally. Zscaler expected to announce quarterly earnings
• Neutral Sentiment: The broader market may remain sensitive to next week’s August jobs report and its implications for Federal Reserve policy, interest rates, and valuation multiples for high-growth technology stocks. August jobs report takes center stage
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only about 1.2%, making it a limited sentiment concern rather than a fundamental warning. Zscaler CFO sells stock

Zscaler Price Performance

Zscaler stock opened at $184.23 on Monday. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The firm's fifty day moving average is $156.19 and its 200 day moving average is $150.23. The company has a market capitalization of $29.79 billion, a PE ratio of -383.80, a PEG ratio of 108.43 and a beta of 0.94.

About Zscaler

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.

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