Zscaler, Inc. $ZS Stock Holdings Lifted by Geode Capital Management LLC

Key Points

• Geode Capital Management increased its Zscaler stake by 5% in the fourth quarter, bringing its holdings to 2.07 million shares valued at about $464.8 million. Several other institutional investors also boosted positions, and institutions now own 46.45% of the stock.
• Insiders were net sellers: CFO Kevin Rubin and Director James A. Beer both sold shares recently, and insiders sold 12,130 shares worth about $1.89 million over the last three months.
• Zscaler beat earnings and revenue estimates for its latest quarter, with EPS of $1.08 and revenue up 25.4% year over year, but the stock remains under pressure as analysts highlighted concerns about weak forward guidance and mixed sentiment on the name.

Geode Capital Management LLC lifted its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 5.0% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 2,069,630 shares of the company's stock after buying an additional 98,140 shares during the quarter. Geode Capital Management LLC owned approximately 1.30% of Zscaler worth $464,783,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of the business. Employees Retirement System of Texas bought a new position in shares of Zscaler in the 4th quarter worth about $81,000. Malaga Cove Capital LLC lifted its position in Zscaler by 3.3% in the 4th quarter. Malaga Cove Capital LLC now owns 8,337 shares of the company's stock valued at $1,875,000 after purchasing an additional 266 shares during the last quarter. Allstate Corp lifted its position in Zscaler by 113.7% in the 4th quarter. Allstate Corp now owns 8,119 shares of the company's stock valued at $1,826,000 after purchasing an additional 4,319 shares during the last quarter. Fisher Asset Management LLC lifted its position in Zscaler by 26.7% in the 4th quarter. Fisher Asset Management LLC now owns 102,968 shares of the company's stock valued at $23,160,000 after purchasing an additional 21,669 shares during the last quarter. Finally, Legal & General Group Plc lifted its position in Zscaler by 9.4% in the 4th quarter. Legal & General Group Plc now owns 645,996 shares of the company's stock valued at $145,297,000 after purchasing an additional 55,706 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Insider Activity at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares in the company, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James A. Beer sold 177 shares of the business's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $27,174.81. Following the sale, the director owned 4,384 shares in the company, valued at $673,075.52. This trade represents a 3.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 12,130 shares of company stock worth $1,892,487 in the last three months. Insiders own 17.20% of the company's stock.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Citizens Jmp cut their price objective on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. TD Cowen reiterated a "buy" rating on shares of Zscaler in a research report on Wednesday. HC Wainwright upgraded shares of Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. Morgan Stanley cut their price objective on shares of Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Finally, Guggenheim reiterated a "neutral" rating on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $216.08.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Despite the selloff, Zscaler reported strong fiscal Q3 results with revenue growth of about 25% year over year and earnings that beat estimates, which some analysts say supports the long-term cybersecurity demand story.
• Positive Sentiment: Some commentary argues the market may be overreacting to the guidance cut, pointing to Zscaler’s strong net retention and its role in AI-driven security workflows as reasons the stock could eventually recover. MarketBeat Zscaler page
• Neutral Sentiment: Zacks Research upgraded Zscaler from “strong sell” to “hold,” suggesting the recent drop may have improved the risk/reward profile, but it does not signal a clear bullish turn.
• Neutral Sentiment: Several articles discuss broader cybersecurity weakness tied to Google’s AI security platform launch and changing investor sentiment around software, which adds context but is not Zscaler-specific.
• Negative Sentiment: Wall Street’s main concern is the disappointing forward guidance, which overshadowed the earnings beat and raised questions about near-term growth and sales execution.
• Negative Sentiment: Reports of class-action and securities-fraud investigations may add overhang to the stock until management can rebuild confidence. Investor alert article

Zscaler Price Performance

ZS stock opened at $139.73 on Monday. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market capitalization of $22.60 billion, a price-to-earnings ratio of -291.10 and a beta of 0.97. The firm's 50-day moving average is $144.36 and its two-hundred day moving average is $188.63. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS - Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same period in the previous year, the firm earned $0.84 EPS. Zscaler's 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, analysts forecast that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

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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