Zscaler, Inc. $ZS Holdings Boosted by Swedbank AB

Key Points

• Swedbank AB nearly doubled its Zscaler stake in the fourth quarter, increasing holdings by 92.8% to 20,706 shares worth about $4.66 million.
• Other major investors also added to Zscaler, with institutions like Vanguard, Groupama, State Street, and AQR boosting positions; institutional ownership stands at 46.45%.
• Zscaler reported better-than-expected Q3 results, including EPS of $1.08 and revenue of $850.5 million, but shares faced pressure after the company’s forward revenue guidance came in slightly below expectations.

Swedbank AB boosted its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 92.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 20,706 shares of the company's stock after acquiring an additional 9,966 shares during the period. Swedbank AB's holdings in Zscaler were worth $4,657,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Zscaler by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after acquiring an additional 55,521 shares during the last quarter. Groupama Asset Managment lifted its holdings in Zscaler by 76,352.6% in the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. State Street Corp lifted its holdings in Zscaler by 4.5% in the third quarter. State Street Corp now owns 2,259,804 shares of the company's stock worth $677,173,000 after acquiring an additional 97,366 shares during the last quarter. First Trust Advisors LP lifted its holdings in Zscaler by 9.5% in the third quarter. First Trust Advisors LP now owns 2,228,134 shares of the company's stock worth $667,682,000 after acquiring an additional 193,281 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after acquiring an additional 741,756 shares during the last quarter. Institutional investors own 46.45% of the company's stock.

Insider Activity at Zscaler

In other news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the sale, the executive vice president owned 67,906 shares of the company's stock, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 12,130 shares of company stock valued at $1,892,487. Company insiders own 17.20% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Zacks Research cut shares of Zscaler from a "hold" rating to a "strong sell" rating in a report on Wednesday, April 29th. Mizuho cut their target price on shares of Zscaler from $265.00 to $250.00 and set an "outperform" rating on the stock in a report on Friday, February 27th. Cantor Fitzgerald reissued an "overweight" rating on shares of Zscaler in a report on Wednesday, May 20th. KeyCorp raised their target price on shares of Zscaler from $160.00 to $190.00 and gave the stock an "overweight" rating in a report on Monday, May 18th. Finally, Berenberg Bank cut their target price on shares of Zscaler from $390.00 to $320.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $260.97.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler beat fiscal Q3 expectations, reporting adjusted EPS of $1.08 versus $1.00 expected and revenue of $850.5 million versus $835.6 million expected, with revenue up 25.4% year over year. Article Title
• Positive Sentiment: The company also highlighted strong operating performance, including 25% ARR growth to $3.525 billion and improved free cash flow of $136 million, reinforcing its AI-cybersecurity growth story. Article Title
• Neutral Sentiment: Investor sentiment had already been supported by broader optimism around cybersecurity stocks and AI-driven security demand heading into the report. Article Title
• Negative Sentiment: Shares sold off after Zscaler’s Q4 revenue outlook came in slightly below Wall Street expectations, suggesting tougher competition and more cautious enterprise spending on cloud security. Article Title
• Negative Sentiment: Analysts and headlines also pointed to a lower free cash flow outlook and “mixed guidance” as the main reasons the stock gave back gains despite the earnings beat. Article Title

Zscaler Stock Performance

ZS opened at $184.60 on Wednesday. The business's 50 day moving average is $145.75 and its 200-day moving average is $192.65. The stock has a market cap of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share 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 analysts' expectations of $835.60 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business's revenue for the quarter was up 25.4% compared to the same quarter last year. During the same quarter in the previous 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. On average, analysts predict that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Zscaler Company 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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