Wellington Management Group LLP Sells 4,410,538 Shares of Zscaler, Inc. $ZS

Key Points

• Wellington Management Group LLP reduced its stake in Zscaler, Inc. by 78.0% during the first quarter, holding 1,242,829 shares valued at approximately $246.6 million by the end of the quarter.
• Several large investors have increased their holdings in Zscaler, including Envestnet Asset Management, which grew its stake by 96.0% in the fourth quarter.
• Zscaler reported quarterly earnings of $0.84 per share, exceeding estimates, and has set FY 2025 guidance for EPS between 3.180 and 3.19.

Wellington Management Group LLP trimmed its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 78.0% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,242,829 shares of the company's stock after selling 4,410,538 shares during the quarter. Wellington Management Group LLP owned 0.80% of Zscaler worth $246,602,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in ZS. Nuveen LLC bought a new stake in Zscaler in the first quarter worth $153,340,000. Goldman Sachs Group Inc. boosted its holdings in 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 in the last quarter. AQR Capital Management LLC lifted its holdings in shares of Zscaler by 120.1% during the fourth quarter. AQR Capital Management LLC now owns 964,031 shares of the company's stock valued at $173,921,000 after purchasing an additional 525,956 shares in the last quarter. Greenvale Capital LLP bought a new position in shares of Zscaler during the fourth quarter valued at $72,164,000. Finally, Vanguard Group Inc. lifted its holdings in shares of Zscaler by 3.1% during the first quarter. Vanguard Group Inc. now owns 9,890,506 shares of the company's stock valued at $1,962,474,000 after purchasing an additional 294,034 shares in the last quarter. 46.45% of the stock is owned by institutional investors.

Analysts Set New Price Targets

ZS has been the topic of a number of research analyst reports. Guggenheim reaffirmed a "neutral" rating on shares of Zscaler in a report on Friday, May 30th. JPMorgan Chase & Co. upped their price target on Zscaler from $292.00 to $348.00 and gave the company an "overweight" rating in a report on Monday, June 16th. Bank of America upped their price target on Zscaler from $285.00 to $340.00 and gave the company a "buy" rating in a report on Monday, June 9th. Rosenblatt Securities upped their price target on Zscaler from $235.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 30th. Finally, Roth Capital reaffirmed a "neutral" rating on shares of Zscaler in a report on Wednesday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $296.82.

Insider Activity

In related news, insider Adam Geller sold 3,662 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the completion of the transaction, the insider directly owned 46,813 shares of the company's stock, valued at approximately $14,358,483.36. This represents a 7.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Syam Nair sold 4,064 shares of the stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value of $1,234,236.80. Following the transaction, the insider directly owned 106,659 shares of the company's stock, valued at approximately $32,392,338.30. The trade was a 3.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 168,256 shares of company stock valued at $50,618,544 in the last three months. 18.10% of the stock is currently owned by insiders.

Zscaler Stock Up 0.8%

ZS traded up $2.17 during midday trading on Friday, reaching $272.52. The company had a trading volume of 882,582 shares, compared to its average volume of 1,444,461. The business has a 50-day moving average of $292.37 and a two-hundred day moving average of $246.55. The company has a market cap of $42.43 billion, a P/E ratio of -1,048.15, a P/E/G ratio of 288.37 and a beta of 1.06. Zscaler, Inc. has a 1 year low of $153.45 and a 1 year high of $318.46.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Thursday, May 29th. The company reported $0.84 EPS for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The business had revenue of $678.03 million during the quarter, compared to analysts' expectations of $667.13 million. During the same quarter in the prior year, the business posted $0.88 earnings per share. The business's quarterly revenue was up 22.6% on a year-over-year basis. Zscaler has set its FY 2025 guidance at 3.180-3.19 EPS. Q4 2025 guidance at EPS. On average, equities research analysts predict that Zscaler, Inc. will post -0.1 EPS for the current 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.