Zscaler, Inc. $ZS Shares Sold by Mitsubishi UFJ Asset Management Co. Ltd.

Key Points

• Mitsubishi UFJ Asset Management reduced its Zscaler stake by 16.9% in the fourth quarter, selling 23,263 shares and ending with 114,589 shares worth about $25.3 million.
• Zscaler reported better-than-expected quarterly results, posting EPS of $1.01 versus the $0.89 estimate and revenue of $815.75 million, up 25.9% year over year.
• Despite recent share sales and a 0.4% stock dip, analysts remain broadly positive on Zscaler, with a Moderate Buy consensus and an average price target of $263.46.

Mitsubishi UFJ Asset Management Co. Ltd. trimmed its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 16.9% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 114,589 shares of the company's stock after selling 23,263 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned 0.07% of Zscaler worth $25,275,000 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 the company. Vanguard Group Inc. increased its stake in shares of Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after acquiring an additional 55,521 shares during the period. Groupama Asset Managment increased its stake in shares of Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the period. State Street Corp increased its stake in shares of Zscaler by 4.5% during the third quarter. State Street Corp now owns 2,259,804 shares of the company's stock worth $677,173,000 after acquiring an additional 97,366 shares during the period. First Trust Advisors LP increased its stake in shares of Zscaler by 9.5% during the third quarter. First Trust Advisors LP now owns 2,228,134 shares of the company's stock worth $667,682,000 after acquiring an additional 193,281 shares during the period. Finally, AQR Capital Management LLC boosted its holdings in Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock worth $576,083,000 after buying an additional 741,756 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler Stock Down 0.4%

Shares of NASDAQ ZS opened at $152.13 on Friday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $24.46 billion, a PE ratio of -362.21 and a beta of 0.96. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The firm's 50-day moving average is $143.25 and its two-hundred day moving average is $206.91.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same quarter in the prior year, the firm earned $0.78 earnings per share. The company's revenue for the quarter was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities analysts anticipate that Zscaler, Inc. will post -0.03 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. KeyCorp decreased their price objective on shares of Zscaler from $220.00 to $160.00 and set an "overweight" rating on the stock in a report on Wednesday, April 15th. Citigroup decreased their price objective on shares of Zscaler from $305.00 to $195.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Needham & Company LLC decreased their price objective on shares of Zscaler from $310.00 to $180.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Truist Financial decreased their price objective on shares of Zscaler from $350.00 to $250.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $280.00 price objective on shares of Zscaler in a report on Tuesday, February 24th. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus price target of $263.46.

Insider Buying and Selling

In other Zscaler news, Director James A. Beer sold 177 shares of the company's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director owned 4,384 shares of the company's stock, valued at $673,075.52. This represents a 3.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the business's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the completion of the transaction, the chief financial officer directly owned 46,479 shares of the company's stock, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is owned by company insiders.

Zscaler 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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