Vanguard Group Inc. Buys 55,521 Shares of Zscaler, Inc. $ZS

Key Points

• Vanguard Group Inc. increased its Q4 stake in Zscaler by 0.5%, now owning 11,423,424 shares (about 7.16% of the company) valued at roughly $2.57 billion.
• Zscaler beat Q4 expectations with EPS of $1.01 versus $0.89 and revenue of $815.8M (up 25.9% YoY), and gave Q3 2026 EPS guidance of $1.000–1.010 and FY2026 guidance of $3.990–4.020.
• Several major brokers trimmed price targets (e.g., JPMorgan to $267, Goldman to $257, Barclays $220), yet the consensus rating is a “Moderate Buy” with an average price target of $265.74.

Vanguard Group Inc. increased its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 0.5% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 11,423,424 shares of the company's stock after purchasing an additional 55,521 shares during the period. Vanguard Group Inc. owned approximately 7.16% of Zscaler worth $2,569,357,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Bessemer Group Inc. lifted its stake in shares of Zscaler by 3.2% in the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company's stock worth $306,000 after acquiring an additional 32 shares during the period. Brookstone Capital Management lifted its stake in shares of Zscaler by 3.7% in the third quarter. Brookstone Capital Management now owns 936 shares of the company's stock worth $280,000 after acquiring an additional 33 shares during the period. Wedbush Securities Inc. lifted its stake in shares of Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company's stock worth $1,537,000 after acquiring an additional 34 shares during the period. Goldstream Capital Management Ltd lifted its stake in Zscaler by 0.3% in the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after buying an additional 34 shares during the period. Finally, Venturi Wealth Management LLC lifted its stake in Zscaler by 2.3% in the third quarter. Venturi Wealth Management LLC now owns 1,603 shares of the company's stock valued at $480,000 after buying an additional 36 shares during the period. Institutional investors own 46.45% of the company's stock.

Insider Activity

In other news, insider Robert Schlossman sold 2,263 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. The trade was a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Kevin Rubin sold 1,682 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer owned 46,479 shares of the company's stock, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 12,130 shares of company stock valued at $1,892,487. Corporate insiders own 17.20% of the company's stock.

Analysts Set New Price Targets

Several brokerages have issued reports on ZS. JPMorgan Chase & Co. dropped their price target on Zscaler from $354.00 to $267.00 and set an "overweight" rating on the stock in a research note on Friday, February 20th. Mizuho dropped their price target on Zscaler from $265.00 to $250.00 and set an "outperform" rating on the stock in a research note on Friday, February 27th. The Goldman Sachs Group dropped their price target on Zscaler from $290.00 to $257.00 and set a "neutral" rating on the stock in a research note on Monday, March 2nd. Stephens dropped their price target on Zscaler from $340.00 to $225.00 and set an "overweight" rating on the stock in a research note on Monday, February 23rd. Finally, Barclays set a $220.00 price target on Zscaler in a research note on Thursday, February 19th. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $265.74.

Zscaler Trading Down 1.0%

NASDAQ ZS opened at $134.73 on Thursday. The company has a market cap of $21.66 billion, a price-to-earnings ratio of -320.79 and a beta of 1.12. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The business has a 50 day moving average price of $144.40 and a 200-day moving average price of $212.13. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company's quarterly revenue was up 25.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, equities analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

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.

Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS - Free Report).

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.