Zscaler, Inc. $ZS Shares Sold by California Public Employees Retirement System

Key Points

• California Public Employees Retirement System trimmed its Zscaler stake by 5.4% in Q1, selling 9,636 shares and leaving it with 167,823 shares valued at about $23.5 million.
• Insider selling continued, with CFO Kevin Rubin and insider Adam Geller both selling shares in pre-arranged 10b5-1 transactions; insiders have sold 15,766 shares over the last 90 days.
• Zscaler reported better-than-expected quarterly results, posting $1.08 EPS on $850.5 million in revenue, while analysts still largely rate the stock a Buy with an average price target of $214.21.

California Public Employees Retirement System cut its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 5.4% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 167,823 shares of the company's stock after selling 9,636 shares during the quarter. California Public Employees Retirement System owned about 0.10% of Zscaler worth $23,544,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Binnacle Investments Inc purchased a new stake in Zscaler during the 3rd quarter worth approximately $25,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler in the fourth quarter worth $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Zscaler in the fourth quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler during the fourth quarter worth $32,000. Finally, Family CFO Inc acquired a new stake in shares of Zscaler during the fourth quarter worth $34,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Insider Activity

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the company's stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer owned 41,901 shares in the company, valued at approximately $5,204,942.22. This represents a 6.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the firm's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This trade represents a 6.24% 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. In the last 90 days, insiders have sold 15,766 shares of company stock valued at $1,978,587. 17.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ZS shares. Wells Fargo & Company cut their target price on Zscaler from $210.00 to $180.00 and set an "overweight" rating on the stock in a research report on Thursday, May 28th. HC Wainwright raised Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. Royal Bank Of Canada reiterated an "outperform" rating and set a $200.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Wedbush reissued an "outperform" rating and issued a $220.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Finally, Stephens reissued an "overweight" rating and issued a $200.00 price objective on shares of Zscaler in a report on Friday, June 12th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $214.21.

Zscaler Stock Performance

Shares of ZS stock opened at $142.26 on Thursday. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $23.00 billion, a PE ratio of -296.37, a price-to-earnings-growth ratio of 85.23 and a beta of 0.96. The business has a 50-day simple moving average of $143.71 and a 200-day simple moving average of $157.52.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. During the same period last year, the business earned $0.84 earnings per share. Zscaler's quarterly revenue was up 25.4% on a year-over-year basis. 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, equities analysts expect that Zscaler, Inc. will post 0.12 EPS for the current year.

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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