Zscaler, Inc. $ZS Stock Holdings Trimmed by Stephens Inc. AR

Key Points

• Stephens Inc. AR sharply cut its Zscaler position in the fourth quarter, trimming its stake by 89% and leaving it with 1,351 shares worth about $304,000.
• Zscaler’s latest earnings topped expectations, with EPS of $1.01 and revenue of $815.75 million, while revenue rose 25.9% year over year. The company also issued fiscal 2026 guidance that points to continued growth.
• Wall Street remains mostly positive on the stock despite lower price targets, with a consensus rating of Moderate Buy and an average target price of $261.26. Recent analyst commentary has also highlighted potential tailwinds from AI security demand and federal spending.

Stephens Inc. AR reduced its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 89.0% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,351 shares of the company's stock after selling 10,985 shares during the quarter. Stephens Inc. AR's holdings in Zscaler were worth $304,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Binnacle Investments Inc acquired a new position in Zscaler in the third quarter valued at approximately $25,000. Root Financial Partners LLC acquired a new position in Zscaler in the third quarter valued at approximately $26,000. Picton Mahoney Asset Management acquired a new position in Zscaler in the third quarter valued at approximately $30,000. Family CFO Inc acquired a new position in Zscaler in the fourth quarter valued at approximately $34,000. Finally, Missouri Trust & Investment Co boosted its stake in Zscaler by 1,460.0% in the third quarter. Missouri Trust & Investment Co now owns 156 shares of the company's stock valued at $47,000 after acquiring an additional 146 shares during the period. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on ZS shares. Oppenheimer decreased their target price on Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. Stephens decreased their target price on Zscaler from $340.00 to $225.00 and set an "overweight" rating for the company in a research note on Monday, February 23rd. Wells Fargo & Company started coverage on Zscaler in a research note on Tuesday, March 3rd. They issued an "overweight" rating and a $200.00 target price for the company. The Goldman Sachs Group decreased their target price on Zscaler from $290.00 to $257.00 and set a "neutral" rating for the company in a research note on Monday, March 2nd. Finally, Needham & Company LLC decreased their target price on Zscaler from $310.00 to $180.00 and set a "buy" rating for the company in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $261.26.

Zscaler Stock Performance

Shares of NASDAQ ZS opened at $182.37 on Friday. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock has a 50 day simple moving average of $144.52 and a 200-day simple moving average of $195.65. The company has a market cap of $29.32 billion, a PE ratio of -434.21 and a beta of 0.96. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business's revenue was up 25.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.78 earnings per share. 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 forecast that Zscaler, Inc. will post -0.03 EPS for the current year.

Insider Buying and Selling at Zscaler

In other news, insider Adam Geller sold 2,094 shares of the business's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the transaction, the insider directly owned 46,949 shares in the company, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Robert Schlossman sold 2,263 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares of the company's stock, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by insiders.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Analysts are increasingly constructive on Zscaler ahead of earnings, with commentary pointing to strong AI security demand, Zero Trust growth, and adoption of Z-Flex as potential tailwinds for Q3 results. Zscaler's Q3 Earnings Countdown: Buy, Hold or Sell the Stock?
• Positive Sentiment: Jefferies reportedly expects Zscaler to beat annual recurring revenue growth expectations, suggesting federal demand and broader cybersecurity spending could support a strong fiscal third quarter and outlook. Zscaler set to benefit from federal tailwinds boosting fourth quarter outlook: analysts
• Positive Sentiment: Zscaler announced the intent to acquire Symmetry Systems, a move aimed at strengthening AI agent security, identity mapping, and data access governance across enterprise systems. Zscaler to Acquire Symmetry Systems, Combining Zero Trust and Access Graph Technology to Map and Secure AI Agent Communication
• Positive Sentiment: Several reports say Zscaler’s setup looks favorable into next week’s earnings, and B. Riley also upgraded the stock to buy, reinforcing the bullish sentiment around the name. Zscaler Setup Looks Positive Into Upcoming Earnings, UBS Says
• Neutral Sentiment: Zscaler also announced upcoming investor conference presentations, which typically keep attention on the stock but do not by themselves change the fundamentals. Zscaler to Present at Upcoming Investor Conferences
• Neutral Sentiment: Some coverage noted the stock had been weak in the prior session and remains below its 52-week high, but that appears to be overshadowed by the latest bullish earnings and AI-security headlines. Zscaler (ZS) Stock Drops Despite Market Gains: Important Facts to Note

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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