UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC Sells 1,819,959 Shares of Zscaler, Inc. $ZS

Key Points

• UBS AM reduced its stake in Zscaler by 36.8%, selling 1,819,959 shares and holding 3,128,170 shares worth approximately $620.7 million after the sale.
• Multiple brokerages upgraded Zscaler's stock ratings, with Wells Fargo raising the price target from $260 to $385 and Stifel Nicolaus from $295 to $330, reflecting growing investor confidence.
• Insider selling occurred recently, with CEO Jagtar Singh Chaudhry selling 2,849 shares for over $865,000, indicating a slight decrease in insider ownership amidst positive stock performance.

UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lowered its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 36.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,128,170 shares of the company's stock after selling 1,819,959 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC owned 2.02% of Zscaler worth $620,691,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. ORG Partners LLC raised its stake in Zscaler by 284.8% in the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after acquiring an additional 94 shares during the period. SVB Wealth LLC bought a new stake in Zscaler in the 1st quarter valued at $26,000. Goodman Advisory Group LLC bought a new stake in Zscaler in the 1st quarter valued at $29,000. N.E.W. Advisory Services LLC bought a new stake in Zscaler in the 1st quarter valued at $29,000. Finally, Elequin Capital LP bought a new stake in Zscaler in the 4th quarter valued at $30,000. Institutional investors own 46.45% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on ZS. Wells Fargo & Company raised Zscaler from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $260.00 to $385.00 in a report on Friday, June 13th. Stifel Nicolaus upped their price objective on Zscaler from $295.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. KeyCorp upped their price objective on Zscaler from $345.00 to $350.00 and gave the company an "overweight" rating in a report on Wednesday, September 3rd. Robert W. Baird upped their price objective on Zscaler from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Wednesday, September 3rd. Finally, Morgan Stanley raised Zscaler from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $280.00 to $320.00 in a report on Tuesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $307.00.

Insiders Place Their Bets

In other news, CEO Jagtar Singh Chaudhry sold 2,849 shares of the company's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value of $865,241.30. Following the completion of the sale, the chief executive officer directly owned 353,565 shares of the company's stock, valued at approximately $107,377,690.50. This represents a 0.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Raj Judge sold 2,957 shares of the company's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total transaction of $898,040.90. Following the completion of the sale, the executive vice president directly owned 76,289 shares of the company's stock, valued at $23,168,969.30. The trade was a 3.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 23,305 shares of company stock valued at $7,093,136. 18.10% of the stock is owned by insiders.

Zscaler Stock Up 0.2%

Shares of NASDAQ ZS opened at $282.29 on Wednesday. The firm has a market cap of $43.95 billion, a price-to-earnings ratio of -1,045.52 and a beta of 1.05. Zscaler, Inc. has a 52-week low of $153.45 and a 52-week high of $318.46. The business's 50 day moving average is $284.15 and its two-hundred day moving average is $252.24.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, September 2nd. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. The firm had revenue of $719.23 million during the quarter, compared to the consensus estimate of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.49%. The company's revenue was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.88 earnings per share. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. Analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

About Zscaler

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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