Zscaler, Inc. $ZS Stock: Krilogy Financial LLC Grows Stake

Key Points

• Krilogy Financial increased its Zscaler stake by 163% in the third quarter to 11,008 shares valued at approximately $2.2 million. Institutional investors collectively own 46.45% of Zscaler.
• Zscaler exceeded quarterly expectations, reporting $1.19 in earnings per share versus the $1.09 consensus and revenue of $898.19 million, up 24.9% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $239.41.
• Insiders sold approximately 54,053 shares worth $11.26 million during the last quarter under pre-arranged Rule 10b5-1 plans, while the stock’s high valuation and competition remain potential risks.

Krilogy Financial LLC lifted its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 163.0% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 11,008 shares of the company's stock after acquiring an additional 6,822 shares during the period. Krilogy Financial LLC's holdings in Zscaler were worth $2,195,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Zscaler during the second quarter valued at approximately $1,396,028,000. First Trust Advisors LP raised its holdings in Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after purchasing an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler in the second quarter worth approximately $102,271,000. Pictet Asset Management Holding SA lifted its position in Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company's stock worth $269,285,000 after purchasing an additional 661,413 shares during the period. Finally, Legal & General Group Plc bought a new position in Zscaler during the 2nd quarter valued at $89,740,000. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Down 3.4%

NASDAQ ZS opened at $220.79 on Thursday. 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 $36.00 billion, a P/E ratio of -566.13, a PEG ratio of 21.97 and a beta of 0.94. The company's 50 day simple moving average is $190.07 and its 200 day simple moving average is $159.06. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to analysts' expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm's revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period last year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Equities research analysts expect that Zscaler, Inc. will post 0.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Adam Geller sold 1,042 shares of Zscaler stock in a transaction on Monday, October 12th. The stock was sold at an average price of $235.95, for a total value of $245,859.90. Following the transaction, the insider directly owned 38,308 shares in the company, valued at $9,038,772.60. The trade was a 2.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 177 shares of Zscaler stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total value of $33,985.77. Following the completion of the transaction, the director owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 54,053 shares of company stock worth $11,256,876 over the last quarter. 17.20% of the stock is currently owned by insiders.

Analysts Set New Price Targets

ZS has been the topic of several research analyst reports. Stephens lifted their price target on Zscaler from $225.00 to $265.00 and gave the company an "overweight" rating in a research report on Wednesday, October 7th. Stifel Nicolaus boosted their price objective on Zscaler from $200.00 to $235.00 and gave the stock a "buy" rating in a research note on Wednesday, October 7th. Morgan Stanley upped their price objective on Zscaler from $165.00 to $185.00 and gave the company an "equal weight" rating in a report on Wednesday, October 7th. Wells Fargo & Company upped their price objective on Zscaler from $215.00 to $260.00 and gave the company an "overweight" rating in a report on Wednesday, October 7th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Zscaler in a research note on Friday, October 9th. Thirty-five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Zscaler presently has an average rating of "Moderate Buy" and a consensus price target of $239.41.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor-day outlook remains supportive: Zscaler reaffirmed its fiscal 2027 guidance and outlined a long-term path toward roughly $8 billion in annual recurring revenue, with additional potential from AI-driven cybersecurity demand. Several analysts subsequently raised their price targets. Zscaler investor-day outlook
• Positive Sentiment: Analyst sentiment is generally favorable: Recent target increases included Baird’s $285 target and JMP’s $265 target. MarketBeat data shows a “Moderate Buy” consensus, although targets vary considerably. Zscaler analyst ratings
• Neutral Sentiment: Investor attention is elevated: ZS has been among the most-searched stocks on Zacks, but high interest alone does not establish a fundamental catalyst and analyst opinions remain mixed. Investors search Zscaler
• Negative Sentiment: Valuation and growth risks are limiting upside: A recent analysis rated Zscaler “Hold,” arguing that the rally has already removed much of the favorable risk/reward. Weak fiscal 2027 net new ARR guidance, possible revenue-growth moderation and competition from CrowdStrike and Palo Alto Networks remain concerns. Zscaler valuation analysis
• Negative Sentiment: Insider selling adds pressure: Chief Product Officer Adam Geller sold approximately $5.65 million of shares, including a larger sale disclosed recently. The transactions were conducted under a pre-arranged Rule 10b5-1 plan, reducing their significance as a direct signal of company fundamentals but potentially weighing on sentiment. Zscaler insider sale
• Negative Sentiment: Legal scrutiny is an additional overhang: Pomerantz LLP announced an investigation into potential investor claims involving Zscaler. The announcement does not establish wrongdoing, but it may increase headline and litigation risk. Pomerantz Zscaler investor alert

About Zscaler

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company's offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization's network to remote users.

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