Zscaler, Inc. $ZS Shares Acquired by Chicago Partners Investment Group LLC

Key Points

• Chicago Partners Investment Group increased its Zscaler stake by 375.4% in the third quarter, adding 10,823 shares to hold 13,706 shares valued at about $3.5 million. Hedge funds and other institutions own 46.45% of the stock.
• Zscaler’s latest reported quarter beat analyst estimates, with EPS of $1.19 versus $1.09 expected and revenue up 24.9% year over year to $898.2 million.
• Shares were reported down 9.2%; analysts’ consensus rating was Moderate Buy, with an average price target of $236.65. The article also cites slowing growth and rising spending as potential headwinds.

Chicago Partners Investment Group LLC increased its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 375.4% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 13,706 shares of the company's stock after acquiring an additional 10,823 shares during the period. Chicago Partners Investment Group LLC's holdings in Zscaler were worth $3,497,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in Zscaler during the second quarter worth $1,396,028,000. First Trust Advisors LP grew its holdings in Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Zscaler in the second quarter valued at $102,271,000. Legal & General Group Plc purchased a new position in shares of Zscaler in the second quarter valued at $89,740,000. Finally, International Assets Investment Management LLC increased its position in shares of Zscaler by 23,646.1% in the third quarter. International Assets Investment Management LLC now owns 606,000 shares of the company's stock valued at $120,849,000 after buying an additional 603,448 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: AI security demand and continued adoption of Zero Trust are potential growth supports, according to a recent Zacks analysis, which nevertheless recommended a hold. Zacks analysis of Zscaler’s outlook
• Neutral Sentiment: Zscaler said it will report first-quarter fiscal 2027 results after market close on December 2 and hold an investor call that day. The announcement sets the next major earnings catalyst but did not provide new financial results. Earnings call announcement
• Neutral Sentiment: Insider Adam Geller sold 1,041 shares under a pre-arranged Rule 10b5-1 plan, a relatively small reduction in his holdings. Insider transaction report
• Negative Sentiment: Coverage cited slowing growth and rising spending as headwinds. On the latest session, Zscaler fell alongside Cloudflare, Datadog, Elastic and Palantir, suggesting a broader pullback in growth-oriented technology shares also weighed on the stock. Report on declines in software and cybersecurity shares

Insider Transactions at Zscaler

In other news, CFO Kevin Rubin sold 514 shares of Zscaler stock in a transaction on Monday, October 26th. The stock was sold at an average price of $259.15, for a total transaction of $133,203.10. Following the transaction, the chief financial officer directly owned 62,113 shares in the company, valued at approximately $16,096,583.95. This trade represents a 0.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 177 shares of Zscaler stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total value of $33,985.77. Following the transaction, the director owned 4,030 shares in the company, valued at approximately $773,800.30. This trade represents a 4.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 55,105 shares of company stock valued at $11,563,836. 17.20% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

ZS has been the subject of several research reports. BNP Paribas Exane reaffirmed an "outperform" rating and set a $250.00 price target (up from $230.00) on shares of Zscaler in a research note on Wednesday, October 7th. DA Davidson started coverage on Zscaler in a report on Wednesday, October 21st. They set a "neutral" rating and a $215.00 target price for the company. Wedbush boosted their target price on Zscaler from $215.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, October 7th. KeyCorp increased their target price on shares of Zscaler from $185.00 to $210.00 and gave the stock an "overweight" rating in a research report on Friday, August 21st. Finally, Weiss Ratings upgraded shares of Zscaler from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, September 24th. Thirty-six research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $236.65.

Zscaler Stock Down 9.2%

ZS stock opened at $203.88 on Friday. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $333.90. The company has a market capitalization of $33.24 billion, a price-to-earnings ratio of -522.77, a price-to-earnings-growth ratio of 21.34 and a beta of 0.82. The firm's 50-day moving average is $207.81 and its two-hundred day moving average is $167.72. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business had revenue of $898.19 million during the quarter, compared to analysts' expectations of $876.96 million. During the same period last year, the firm posted $0.89 earnings per share. The business's revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, analysts forecast that Zscaler, Inc. will post 0.70 earnings per share for the current fiscal year.

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which provides secure access to internet and software-as-a-service applications, and Zscaler Private Access, which enables secure access to private applications without extending an organization's network to users.

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