Westpac Banking Corp Decreases Stock Position in Zscaler, Inc. $ZS

Key Points

• Westpac Banking Corp sharply reduced its Zscaler stake in the first quarter, selling 11,077 shares and cutting its position by 91.3% to 1,060 shares worth about $149,000.
• Zscaler reported better-than-expected quarterly results, posting $1.08 EPS on revenue of $850.48 million, with revenue up 25.4% year over year and guidance for FY 2026 calling for continued profitability growth.
• Despite some insider selling and mixed analyst actions, Wall Street remains broadly positive on the stock, with 34 Buy ratings and an average target price of about $214.21.

Westpac Banking Corp decreased its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 91.3% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 1,060 shares of the company's stock after selling 11,077 shares during the quarter. Westpac Banking Corp's holdings in Zscaler were worth $149,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. PNC Financial Services Group Inc. boosted its holdings in shares of Zscaler by 7.4% in the first quarter. PNC Financial Services Group Inc. now owns 7,960 shares of the company's stock worth $1,117,000 after acquiring an additional 549 shares during the period. Andra AP fonden boosted its stake in Zscaler by 206.1% in the 1st quarter. Andra AP fonden now owns 48,564 shares of the company's stock worth $6,813,000 after purchasing an additional 32,700 shares during the period. Dimensional Fund Advisors LP boosted its stake in Zscaler by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 243,763 shares of the company's stock worth $34,192,000 after purchasing an additional 3,719 shares during the period. Parallel Advisors LLC grew its holdings in Zscaler by 12.3% during the 1st quarter. Parallel Advisors LLC now owns 793 shares of the company's stock valued at $111,000 after buying an additional 87 shares in the last quarter. Finally, SEB Asset Management AB purchased a new position in Zscaler during the 1st quarter valued at about $60,033,000. 46.45% of the stock is currently owned by institutional investors.

Zscaler Price Performance

Shares of Zscaler stock opened at $142.32 on Friday. The firm has a market capitalization of $23.01 billion, a PE ratio of -296.49, a price-to-earnings-growth ratio of 80.06 and a beta of 0.96. The company has a current ratio of 1.86, a quick 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 business's 50-day moving average price is $143.06 and its 200-day moving average price is $156.85.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same quarter last year, the firm earned $0.84 EPS. The firm's quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts forecast that Zscaler, Inc. will post 0.12 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, insider Adam Geller sold 2,817 shares of the company's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer directly owned 343,038 shares of the company's stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 15,766 shares of company stock worth $1,978,587. 17.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ZS. Morgan Stanley lowered their price target on shares of Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a report on Wednesday, May 27th. Zacks Research raised shares of Zscaler from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Needham & Company LLC reiterated a "buy" rating and issued a $180.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Citizens Jmp cut their price target on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Zscaler in a research report on Tuesday, June 9th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $214.21.

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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