Zscaler, Inc. $ZS Shares Sold by Massachusetts Financial Services Co. MA

Key Points

• Massachusetts Financial Services Co. MA cut its Zscaler stake by 53.2% in Q4, selling 58,239 shares and retaining 51,246 shares valued at $11.526 million.
• Zscaler beat quarterly estimates with EPS of $1.01 versus $0.89 and revenue of $815.75M (up 25.9% year-over-year), and provided Q3 and FY2026 EPS guidance ranges.
• Insiders sold a total of 12,130 shares (~$1.89M) last quarter, and while several analysts trimmed price targets, MarketBeat's consensus remains a Moderate Buy with an average target of $265.43.

Massachusetts Financial Services Co. MA lowered its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 53.2% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 51,246 shares of the company's stock after selling 58,239 shares during the quarter. Massachusetts Financial Services Co. MA's holdings in Zscaler were worth $11,526,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in ZS. Binnacle Investments Inc acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $25,000. Tradewinds Capital Management LLC raised its position in shares of Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company's stock worth $26,000 after purchasing an additional 51 shares during the period. Root Financial Partners LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $29,000. Finally, Picton Mahoney Asset Management acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $30,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Stock Performance

Shares of ZS stock opened at $134.33 on Friday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market capitalization of $21.60 billion, a price-to-earnings ratio of -319.83 and a beta of 1.12. The business has a 50 day simple moving average of $150.98 and a 200 day simple moving average of $223.34. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.89 by $0.12. The firm had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm's quarterly revenue was up 25.9% on a year-over-year basis. During the same period last year, the company posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities research analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Needham & Company LLC dropped their price target on Zscaler from $310.00 to $180.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Berenberg Bank dropped their price target on Zscaler from $390.00 to $320.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Piper Sandler dropped their price target on Zscaler from $260.00 to $185.00 and set a "neutral" rating on the stock in a research report on Friday, February 27th. Citigroup dropped their price target on Zscaler from $305.00 to $195.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Finally, Oppenheimer dropped their price target on Zscaler from $280.00 to $250.00 and set an "outperform" rating on the stock in a research report on Tuesday, March 10th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Zscaler has a consensus rating of "Moderate Buy" and an average target price of $265.43.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 2,263 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the transaction, the insider directly owned 72,390 shares of the company's stock, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the transaction, the insider directly owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 in the last quarter. 17.20% of the stock is currently owned by corporate insiders.

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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