Wealthfront Advisers LLC Invests $938,000 in Zscaler, Inc. $ZS

Wealthfront Advisers LLC purchased a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 6,645 shares of the company's stock, valued at approximately $938,000.

Other hedge funds have also added to or reduced their stakes in the company. Kentucky Retirement Systems Insurance Trust Fund boosted its holdings in shares of Zscaler by 1.4% in the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after purchasing an additional 36 shares in the last quarter. Parallel Advisors LLC raised its holdings in shares of Zscaler by 10.9% during the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company's stock worth $119,000 after buying an additional 39 shares in the last quarter. Smartleaf Asset Management LLC lifted its position in shares of Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock worth $204,000 after buying an additional 45 shares during the last quarter. Larson Financial Group LLC lifted its position in shares of Zscaler by 2.6% during the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company's stock worth $611,000 after buying an additional 52 shares during the last quarter. Finally, Crossmark Global Holdings Inc. boosted its stake in Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company's stock valued at $292,000 after buying an additional 56 shares in the last quarter. 46.45% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. Piper Sandler decreased their target price on Zscaler from $185.00 to $160.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 27th. Cantor Fitzgerald reissued an "overweight" rating and issued a $225.00 target price on shares of Zscaler in a report on Wednesday. Mizuho raised their price target on shares of Zscaler from $185.00 to $210.00 and gave the company an "outperform" rating in a research note on Wednesday. Canaccord Genuity Group reaffirmed a "buy" rating and set a $210.00 price target on shares of Zscaler in a report on Thursday, June 11th. Finally, KeyCorp upped their price objective on shares of Zscaler from $185.00 to $210.00 and gave the stock an "overweight" rating in a research report on Friday. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Zscaler has a consensus rating of "Moderate Buy" and an average price target of $215.36.

Zscaler Trading Up 3.9%

NASDAQ ZS opened at $181.74 on Friday. The stock has a market capitalization of $29.39 billion, a P/E ratio of -378.62, a P/E/G ratio of 68.66 and a beta of 0.94. The business has a 50 day simple moving average of $151.10 and a 200 day simple moving average of $150.54. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler, Inc. has a one year low of $114.63 and a one year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The business's quarterly revenue was up 25.4% on a year-over-year basis. During the same period last year, the company posted $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts expect that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyBanc raised its price target to $210 from a lower prior target, citing what it views as a valuation discount and potential for the cybersecurity company to regain investor confidence. KeyBanc upgrades Zscaler price target
• Positive Sentiment: Additional bullish analyst actions supported the stock. Mizuho lifted its price target to $210, Stifel Nicolaus raised its target to $200, and Cantor Fitzgerald assigned Zscaler an “Overweight” rating. The actions suggest Wall Street sees upside despite the stock’s sharp decline from its 52-week high. Mizuho raises Zscaler price target Stifel raises Zscaler price target Cantor Fitzgerald rates Zscaler Overweight
• Positive Sentiment: Rising AI-driven cyber threats reinforce demand for Zscaler’s platform. NTT DATA CEO Abhijit Dubey said frontier AI is making attacks more sophisticated, expanding the attack surface, and accelerating attacks to machine speed—an industry trend that could increase demand for cloud-based zero-trust security. AI and cybersecurity threats
• Positive Sentiment: Zscaler’s expanded Carahsoft partnership targets U.S. small and midsize businesses with standardized bundles, simpler pricing, and broader partner enablement. The initiative could diversify Zscaler’s customer base and create an additional growth channel beyond large enterprises. Zscaler and Carahsoft SMB partnership
• Negative Sentiment: AI-lab IPO speculation remains a risk to sentiment. Reports that Anthropic may pursue a massive public offering renewed concerns that investors could redirect capital from enterprise software stocks toward AI companies, contributing to recent pressure on Zscaler. Zscaler and AI IPO concerns

Insider Buying and Selling

In other Zscaler news, insider Robert Schlossman sold 3,146 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 approximately $5,187,696.40. The trade was a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 16,269 shares of company stock valued at $2,052,589. Company insiders own 17.20% of the company's stock.

Zscaler Profile

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.

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