Goldman Sachs Group Inc. Acquires 578,883 Shares of Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Goldman Sachs Group Inc. increased its stake in Zscaler, Inc. by 23.4% during Q1, now owning approximately 3.05 million shares worth around $604.83 million.
• Institutional investors hold 46.45% of Zscaler, with several hedge funds also increasing their stakes in the company recently.
• Zscaler reported a quarterly revenue of $678.03 million, exceeding estimates and showing a 22.6% year-over-year growth.

Goldman Sachs Group Inc. lifted its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 23.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,048,238 shares of the company's stock after purchasing an additional 578,883 shares during the period. Goldman Sachs Group Inc. owned about 1.97% of Zscaler worth $604,831,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of the stock. Quintet Private Bank Europe S.A. increased its position 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 grew its stake in shares of Zscaler by 0.3% during the 1st quarter. Cerity Partners LLC now owns 22,928 shares of the company's stock valued at $4,549,000 after buying an additional 68 shares during the period. Koshinski Asset Management Inc. increased its holdings in shares of Zscaler by 2.6% during the 1st quarter. Koshinski Asset Management Inc. now owns 2,801 shares of the company's stock worth $556,000 after buying an additional 70 shares during the last quarter. Choreo LLC increased its holdings in shares of Zscaler by 2.7% during the 1st quarter. Choreo LLC now owns 2,909 shares of the company's stock worth $577,000 after buying an additional 76 shares during the last quarter. Finally, GSB Wealth Management LLC raised its position in shares of Zscaler by 3.5% in the 1st quarter. GSB Wealth Management LLC now owns 2,395 shares of the company's stock worth $475,000 after buying an additional 80 shares during the period. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Stock Down 1.0%

Shares of ZS traded down $2.80 during mid-day trading on Friday, reaching $269.70. The company's stock had a trading volume of 1,673,452 shares, compared to its average volume of 1,685,475. The company has a market cap of $41.99 billion, a price-to-earnings ratio of -1,037.31, a price-to-earnings-growth ratio of 244.31 and a beta of 1.06. The business has a fifty day moving average of $297.39 and a 200 day moving average of $241.36. 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 posted its quarterly earnings results on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.08. The business had revenue of $678.03 million during the quarter, compared to analyst estimates of $667.13 million. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The firm's revenue was up 22.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.88 earnings per share. On average, analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Syam Nair sold 4,064 shares of the company's stock in a transaction that occurred on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $1,234,236.80. Following the completion of the sale, the insider owned 106,659 shares of the company's stock, valued at $32,392,338.30. This represents a 3.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 stock was sold at an average price of $303.70, for a total transaction of $898,040.90. Following the completion of the sale, the executive vice president owned 76,289 shares of the company's stock, valued at $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. Insiders have sold a total of 200,793 shares of company stock worth $58,752,794 in the last quarter. Corporate insiders own 18.10% of the company's stock.

Analyst Ratings Changes

Several research firms recently weighed in on ZS. Rosenblatt Securities lifted their target price on shares of Zscaler from $235.00 to $315.00 and gave the company a "buy" rating in a report on Friday, May 30th. Piper Sandler restated a "neutral" rating and set a $260.00 price objective (up previously from $235.00) on shares of Zscaler in a research note on Friday, May 30th. Mizuho increased their target price on Zscaler from $275.00 to $290.00 and gave the company a "neutral" rating in a research note on Wednesday, June 4th. FBN Securities upgraded Zscaler to a "strong-buy" rating in a report on Friday, May 30th. Finally, Bank of America upped their price target on Zscaler from $285.00 to $340.00 and gave the stock a "buy" rating in a report on Monday, June 9th. Seven analysts have rated the stock with a hold rating, twenty-nine have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

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.