Fox Run Management L.L.C. Cuts Position in Zscaler, Inc. $ZS

Key Points

• Fox Run Management L.L.C. drastically reduced its stake in Zscaler, Inc. by 83.5% during the first quarter, leaving it with only 1,531 shares valued at $304,000.
• Insider transactions revealed significant sales, including Director Andrew Brown offloading 20,333 shares for approximately $6 million, which represents a 42.76% decrease in his holdings.
• Zscaler's recent earnings report showed $678.03 million in revenue and an EPS of $0.84, surpassing analysts' expectations and indicating a 22.6% increase in revenue year-over-year.

Fox Run Management L.L.C. reduced its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 83.5% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 1,531 shares of the company's stock after selling 7,729 shares during the quarter. Fox Run Management L.L.C.'s holdings in Zscaler were worth $304,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Quintet Private Bank Europe S.A. lifted its stake in shares of Zscaler by 4.7% during the 1st quarter. Quintet Private Bank Europe S.A. now owns 1,120 shares of the company's stock worth $222,000 after acquiring an additional 50 shares during the last quarter. Cerity Partners LLC grew its holdings in shares of Zscaler by 0.3% in the first quarter. Cerity Partners LLC now owns 22,928 shares of the company's stock worth $4,549,000 after purchasing an additional 68 shares during the last quarter. Koshinski Asset Management Inc. grew its holdings in shares of Zscaler by 2.6% in the first quarter. Koshinski Asset Management Inc. now owns 2,801 shares of the company's stock worth $556,000 after purchasing an additional 70 shares during the last quarter. Choreo LLC grew its stake in Zscaler by 2.7% in the 1st quarter. Choreo LLC now owns 2,909 shares of the company's stock worth $577,000 after acquiring an additional 76 shares in the last quarter. Finally, GSB Wealth Management LLC raised its position in Zscaler by 3.5% during the 1st quarter. GSB Wealth Management LLC now owns 2,395 shares of the company's stock valued at $475,000 after purchasing an additional 80 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Performance

Shares of NASDAQ:ZS traded up $2.17 during midday trading on Friday, hitting $272.52. The company's stock had a trading volume of 882,582 shares, compared to its average volume of 1,444,461. The company has a market cap of $42.43 billion, a P/E ratio of -1,048.15, a price-to-earnings-growth ratio of 288.37 and a beta of 1.06. Zscaler, Inc. has a 12-month low of $153.45 and a 12-month high of $318.46. The business's 50 day simple moving average is $292.37 and its 200 day simple moving average is $246.55.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings data on Thursday, May 29th. The company reported $0.84 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.08. The company had revenue of $678.03 million during the quarter, compared to the consensus estimate of $667.13 million. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. Zscaler's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.88 EPS. Zscaler has set its FY 2025 guidance at 3.180-3.19 EPS. Q4 2025 guidance at EPS. On average, sell-side analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have issued reports on the company. Scotiabank increased their target price on Zscaler from $310.00 to $360.00 and gave the company a "sector outperform" rating in a research report on Friday, June 6th. Cantor Fitzgerald lifted their price target on Zscaler from $290.00 to $340.00 and gave the company an "overweight" rating in a research report on Wednesday, June 11th. Loop Capital lifted their price target on Zscaler from $250.00 to $260.00 and gave the company a "hold" rating in a research note on Friday, May 30th. FBN Securities raised Zscaler to a "strong-buy" rating in a report on Friday, May 30th. Finally, Barclays upped their target price on Zscaler from $275.00 to $290.00 and gave the stock an "overweight" rating in a research note on Friday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

Insider Buying and Selling

In other Zscaler news, insider Adam Geller sold 3,662 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total value of $1,123,208.64. Following the completion of the sale, the insider directly owned 46,813 shares of the company's stock, valued at $14,358,483.36. This trade represents a 7.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the company's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total transaction of $865,241.30. Following the completion of the sale, the chief executive officer directly owned 353,565 shares of the company's stock, valued at $107,377,690.50. This represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders sold 168,256 shares of company stock worth $50,618,544 over the last quarter. Corporate insiders own 18.10% of the company's stock.

About Zscaler

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.