Kovitz Investment Group Partners LLC Cuts Holdings in Zscaler, Inc. $ZS

Key Points

• Kovitz Investment Group Partners LLC sold 1,921 shares of Zscaler, Inc., reducing its holdings by 53.5% to 1,672 shares, valued at $332,000.
• Several institutional investors, including Quintet Private Bank and Cerity Partners, have increased their stakes in Zscaler during the same period, indicating growing interest in the stock.
• Analysts have raised their price targets for Zscaler, with a consensus rating of "Moderate Buy" and a price target of $296.82, reflecting increased confidence in the company's growth prospects.

Kovitz Investment Group Partners LLC decreased its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 53.5% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,672 shares of the company's stock after selling 1,921 shares during the period. Kovitz Investment Group Partners LLC's holdings in Zscaler were worth $332,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. ORG Partners LLC grew its position in shares of Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after acquiring an additional 94 shares during the period. Goodman Advisory Group LLC bought a new stake in shares of Zscaler during the 1st quarter valued at $29,000. N.E.W. Advisory Services LLC bought a new position in shares of Zscaler in the first quarter worth approximately $29,000. CVA Family Office LLC increased its stake in shares of Zscaler by 120.3% in the first quarter. CVA Family Office LLC now owns 152 shares of the company's stock worth $30,000 after purchasing an additional 83 shares in the last quarter. Finally, Colonial Trust Co SC purchased a new stake in shares of Zscaler in the fourth quarter worth $28,000. Institutional investors own 46.45% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on ZS shares. JPMorgan Chase & Co. upped their target price on shares of Zscaler from $292.00 to $348.00 and gave the stock an "overweight" rating in a report on Monday, June 16th. Loop Capital boosted their price objective on Zscaler from $250.00 to $260.00 and gave the company a "hold" rating in a research report on Friday, May 30th. Cantor Fitzgerald upped their price objective on Zscaler from $290.00 to $340.00 and gave the stock an "overweight" rating in a research note on Wednesday, June 11th. Bank of America lifted their target price on Zscaler from $285.00 to $340.00 and gave the company a "buy" rating in a research note on Monday, June 9th. Finally, BTIG Research reissued a "buy" rating on shares of Zscaler in a report on Thursday, July 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $296.82.

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 3,174 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $305.07, for a total transaction of $968,292.18. Following the transaction, the insider directly owned 88,970 shares in the company, valued at approximately $27,142,077.90. This represents a 3.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Syam Nair sold 4,064 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 $1,234,236.80. Following the transaction, the insider owned 106,659 shares in the company, valued at $32,392,338.30. The trade was a 3.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 168,256 shares of company stock valued at $50,618,544. 18.10% of the stock is currently owned by company insiders.

Zscaler Stock Performance

ZS stock traded up $2.17 during trading on Friday, hitting $272.52. 882,582 shares of the company's stock traded hands, compared to its average volume of 1,444,461. Zscaler, Inc. has a 52 week low of $153.45 and a 52 week high of $318.46. The stock has a market capitalization of $42.43 billion, a price-to-earnings ratio of -1,048.15, a P/E/G ratio of 290.68 and a beta of 1.06. The business has a fifty day simple moving average of $292.37 and a 200 day simple moving average of $246.84.

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

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.