Valicenti Advisory Services Inc. Trims Position in Zscaler, Inc. $ZS

Key Points

• Valicenti Advisory Services Inc. reduced its holdings in Zscaler, Inc. by 7.5% during Q2, ending up with 13,194 shares valued at $4,142,000.
• Zscaler reported a quarterly earnings per share (EPS) of $0.89, surpassing estimates and achieving a 21.3% year-over-year revenue increase.
• Institutional investors collectively own 46.45% of Zscaler's stock, indicating substantial interest from major financial entities.

Valicenti Advisory Services Inc. lessened its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 7.5% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 13,194 shares of the company's stock after selling 1,064 shares during the quarter. Valicenti Advisory Services Inc.'s holdings in Zscaler were worth $4,142,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of ZS. T. Rowe Price Investment Management Inc. purchased a new stake in Zscaler in the first quarter worth about $516,622,000. Nuveen LLC bought a new position in shares of Zscaler in the first quarter worth about $153,340,000. Goldman Sachs Group Inc. boosted its stake in shares of Zscaler by 23.4% in the first quarter. Goldman Sachs Group Inc. now owns 3,048,238 shares of the company's stock worth $604,831,000 after acquiring an additional 578,883 shares during the period. Woodline Partners LP bought a new position in shares of Zscaler in the first quarter worth about $70,340,000. Finally, Vanguard Group Inc. grew its holdings in Zscaler by 3.1% during the 1st quarter. Vanguard Group Inc. now owns 9,890,506 shares of the company's stock valued at $1,962,474,000 after buying an additional 294,034 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Price Performance

Shares of ZS opened at $294.65 on Friday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. The company has a market capitalization of $46.64 billion, a price-to-earnings ratio of -1,091.30 and a beta of 1.05. Zscaler, Inc. has a fifty-two week low of $164.78 and a fifty-two week high of $318.46. The firm has a 50-day simple moving average of $280.46 and a 200-day simple moving average of $259.94.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.09. The company had revenue of $719.23 million during the quarter, compared to analysts' expectations of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. The business's quarterly revenue was up 21.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, equities research analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Evercore ISI raised their price target on Zscaler from $290.00 to $320.00 and gave the company an "outperform" rating in a report on Wednesday, September 3rd. Scotiabank dropped their price target on Zscaler from $360.00 to $334.00 and set a "sector outperform" rating on the stock in a research report on Wednesday, September 3rd. Wall Street Zen upgraded shares of Zscaler from a "hold" rating to a "buy" rating in a report on Sunday, September 7th. Oppenheimer raised their price objective on Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a research report on Friday, June 6th. Finally, Bank of America raised their price objective on Zscaler from $285.00 to $340.00 and gave the stock a "buy" rating in a research report on Monday, June 9th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $307.00.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 11,193 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $3,141,875.10. Following the completion of the sale, the insider owned 53,942 shares in the company, valued at approximately $15,141,519.40. This trade represents a 17.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert Schlossman sold 3,832 shares of Zscaler stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $1,075,642.40. Following the completion of the sale, the insider owned 83,138 shares in the company, valued at approximately $23,336,836.60. This trade represents a 4.41% decrease in their position. The disclosure for this sale can be found here. Insiders sold 32,878 shares of company stock valued at $9,266,002 in the last ninety days. Insiders own 18.10% of the company's stock.

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.

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