Vanguard Group Inc. Acquires 294,034 Shares of Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Vanguard Group Inc. increased its stake in Zscaler, Inc. by 3.1%, owning nearly 9.9 million shares valued at approximately $1.96 billion.
• Several institutional investors also significantly raised their holdings in Zscaler during the 1st quarter, with 46.45% of the stock owned by hedge funds and other institutional investors.
• Zscaler's recent earnings report revealed a quarterly revenue growth of 22.6% year-over-year, alongside an EPS of $0.84, exceeding analyst expectations.

Vanguard Group Inc. increased its stake in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 3.1% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,890,506 shares of the company's stock after buying an additional 294,034 shares during the quarter. Vanguard Group Inc. owned about 6.39% of Zscaler worth $1,962,474,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Quintet Private Bank Europe S.A. lifted its stake in Zscaler by 4.7% during the first quarter. Quintet Private Bank Europe S.A. now owns 1,120 shares of the company's stock worth $222,000 after purchasing an additional 50 shares during the last quarter. Cerity Partners LLC lifted its stake in shares of Zscaler by 0.3% in the 1st quarter. Cerity Partners LLC now owns 22,928 shares of the company's stock valued at $4,549,000 after acquiring an additional 68 shares during the last quarter. Koshinski Asset Management Inc. increased its holdings in Zscaler by 2.6% in the first quarter. Koshinski Asset Management Inc. now owns 2,801 shares of the company's stock valued at $556,000 after purchasing an additional 70 shares during the period. Choreo LLC increased its holdings in Zscaler by 2.7% in the first quarter. Choreo LLC now owns 2,909 shares of the company's stock valued at $577,000 after purchasing an additional 76 shares during the period. Finally, GSB Wealth Management LLC increased its holdings in Zscaler by 3.5% in the first quarter. GSB Wealth Management LLC now owns 2,395 shares of the company's stock valued at $475,000 after purchasing an additional 80 shares during the period. Institutional investors and hedge funds own 46.45% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ZS. Robert W. Baird increased their price target on Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a report on Friday, May 30th. Mizuho increased their price target on Zscaler from $275.00 to $290.00 and gave the stock a "neutral" rating in a report on Wednesday, June 4th. Stifel Nicolaus increased their price target on Zscaler from $270.00 to $295.00 and gave the stock a "buy" rating in a report on Friday, May 30th. Oppenheimer increased their price target on Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a report on Friday, June 6th. Finally, Roth Capital reiterated a "neutral" rating on shares of Zscaler in a report on Wednesday, May 28th. Seven research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $296.82.

Zscaler Stock Performance

Shares of Zscaler stock traded up $4.25 during mid-day trading on Tuesday, hitting $275.43. 1,123,820 shares of the stock were exchanged, compared to its average volume of 1,630,514. Zscaler, Inc. has a 12 month low of $153.45 and a 12 month high of $318.46. The company has a 50-day simple moving average of $296.56 and a 200 day simple moving average of $242.81. The company has a market capitalization of $42.88 billion, a P/E ratio of -1,059.35, a P/E/G ratio of 243.13 and a beta of 1.06.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping the consensus estimate of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The firm had revenue of $678.03 million for the quarter, compared to analysts' expectations of $667.13 million. During the same quarter last year, the firm earned $0.88 EPS. The company's quarterly revenue was up 22.6% compared to the same quarter last year. Analysts predict that Zscaler, Inc. will post -0.1 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Adam Geller sold 3,662 shares of the business's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the sale, the insider directly owned 46,813 shares in the company, valued at $14,358,483.36. The trade was a 7.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Raj Judge sold 2,957 shares of the business's stock in a transaction on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value of $898,040.90. Following the completion of the sale, the executive vice president owned 76,289 shares in the company, valued at approximately $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. Over the last ninety days, insiders sold 200,793 shares of company stock valued at $58,752,794. Company insiders own 18.10% of the company's stock.

Zscaler 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.