Westfield Capital Management Co. LP Invests $63.16 Million in Zscaler, Inc. $ZS

Key Points

• Westfield Capital Management bought a new stake in Zscaler in Q4, acquiring 280,807 shares worth about $63.16 million and representing roughly 0.18% of the company.
• Zscaler reported better-than-expected quarterly results, with EPS of $1.08 topping estimates and revenue of $850.48 million, up 25.4% year over year.
• Despite solid results, the stock has been under pressure: Zscaler opened at $130.78, well below its 52-week high, while analysts currently rate it a Moderate Buy with a consensus target price of $216.03.

Westfield Capital Management Co. LP acquired a new position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 280,807 shares of the company's stock, valued at approximately $63,159,000. Westfield Capital Management Co. LP owned approximately 0.18% of Zscaler as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in ZS. Westpac Banking Corp grew its position in Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company's stock worth $2,992,000 after purchasing an additional 9,006 shares during the last quarter. Korea Investment CORP increased its position in shares of Zscaler by 24.0% during the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company's stock worth $29,478,000 after purchasing an additional 19,026 shares in the last quarter. Qsemble Capital Management LP increased its position in shares of Zscaler by 105.5% during the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock worth $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Vinva Investment Management Ltd increased its position in shares of Zscaler by 136.1% during the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company's stock worth $3,400,000 after purchasing an additional 6,541 shares in the last quarter. Finally, Oxbow Advisors LLC acquired a new stake in shares of Zscaler during the 4th quarter worth about $2,939,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Zscaler

In other news, EVP Raj Judge sold 2,488 shares of the company'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 value of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares of the company's stock, valued at $10,633,400.54. This represents a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director James A. Beer sold 177 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $27,174.81. Following the completion of the transaction, the director directly owned 4,384 shares of the company's stock, valued at $673,075.52. This represents a 3.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 12,130 shares of company stock valued at $1,892,487 over the last three months. 17.20% of the stock is owned by insiders.

Zscaler Price Performance

NASDAQ ZS opened at $130.78 on Friday. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $21.15 billion, a PE ratio of -272.45 and a beta of 0.97. The firm's 50 day moving average is $143.61 and its 200-day moving average is $183.43.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm's revenue was up 25.4% compared to the same quarter last year. During the same period last year, the company earned $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. Equities research analysts anticipate that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Evercore set a $155.00 price objective on shares of Zscaler and gave the company an "in-line" rating in a research report on Wednesday, May 27th. KeyCorp raised their price objective on shares of Zscaler from $160.00 to $190.00 and gave the company an "overweight" rating in a research report on Monday, May 18th. Royal Bank Of Canada lowered their price objective on shares of Zscaler from $205.00 to $200.00 and set an "outperform" rating for the company in a research report on Wednesday, May 27th. Scotiabank lowered their price objective on shares of Zscaler from $190.00 to $175.00 and set a "sector outperform" rating for the company in a research report on Wednesday, May 27th. Finally, HC Wainwright upgraded shares of Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. Thirty-three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $216.03.

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.

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