Zscaler, Inc. $ZS Stock Position Boosted by Kestra Private Wealth Services LLC

Key Points

• Kestra Private Wealth Services increased its Zscaler stake by 84.2% in the third quarter, ending the period with 11,820 shares worth about $2.36 million. Several other institutional investors also added shares; institutions collectively owned 46.45% of the stock.
• Analyst sentiment was broadly positive: MarketBeat reported a “Moderate Buy” consensus and a $236.65 average price target, with 36 Buy, eight Hold, and one Sell rating.
• Zscaler’s latest reported quarter beat earnings and revenue estimates, with revenue up 24.9% year over year. The article also cited growth and spending concerns and reported a 9.2% share-price decline.

Kestra Private Wealth Services LLC boosted its position in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 84.2% during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund owned 11,820 shares of the company's stock after purchasing an additional 5,403 shares during the quarter. Kestra Private Wealth Services LLC's holdings in Zscaler were worth $2,357,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Handelsbanken Fonder AB increased its position in Zscaler by 89.6% during the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company's stock worth $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Zscaler by 6.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company's stock valued at $27,284,000 after purchasing an additional 11,941 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company's stock valued at $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Krilogy Financial LLC grew its stake in shares of Zscaler by 163.0% during the 3rd quarter. Krilogy Financial LLC now owns 11,008 shares of the company's stock valued at $2,195,000 after buying an additional 6,822 shares during the period. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new stake in shares of Zscaler during the 2nd quarter valued at $11,232,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Jefferies Financial Group increased their target price on Zscaler from $220.00 to $250.00 and gave the stock a "buy" rating in a research report on Wednesday, October 7th. DA Davidson initiated coverage on Zscaler in a research report on Wednesday, October 21st. They set a "neutral" rating and a $215.00 price target for the company. Zacks Research upgraded Zscaler from a "strong sell" rating to a "hold" rating in a research note on Friday, October 2nd. BTIG Research restated a "neutral" rating on shares of Zscaler in a research note on Wednesday, October 7th. Finally, UBS Group raised their price objective on Zscaler from $225.00 to $250.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. Thirty-six research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Zscaler presently has a consensus rating of "Moderate Buy" and a consensus target price of $236.65.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: AI security demand and continued adoption of Zero Trust are potential growth supports, according to a recent Zacks analysis, which nevertheless recommended a hold. Zacks analysis of Zscaler’s outlook
• Neutral Sentiment: Zscaler said it will report first-quarter fiscal 2027 results after market close on December 2 and hold an investor call that day. The announcement sets the next major earnings catalyst but did not provide new financial results. Earnings call announcement
• Neutral Sentiment: Insider Adam Geller sold 1,041 shares under a pre-arranged Rule 10b5-1 plan, a relatively small reduction in his holdings. Insider transaction report
• Negative Sentiment: Coverage cited slowing growth and rising spending as headwinds. On the latest session, Zscaler fell alongside Cloudflare, Datadog, Elastic and Palantir, suggesting a broader pullback in growth-oriented technology shares also weighed on the stock. Report on declines in software and cybersecurity shares

Zscaler Stock Down 9.2%

Shares of NASDAQ ZS opened at $203.88 on Friday. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $333.90. The company has a market cap of $33.24 billion, a P/E ratio of -522.77, a P/E/G ratio of 21.34 and a beta of 0.82. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock has a fifty day moving average price of $207.81 and a 200 day moving average price of $167.72.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts' consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. The company had revenue of $898.19 million for the quarter, compared to analysts' expectations of $876.96 million. During the same quarter in the previous year, the firm posted $0.89 earnings per share. The firm's quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Research analysts anticipate that Zscaler, Inc. will post 0.70 EPS for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, Director James A. Beer sold 177 shares of the company's stock in a transaction that occurred 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. This represents a 4.21% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 514 shares of the stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $259.15, for a total transaction of $133,203.10. Following the completion of the sale, the chief financial officer directly owned 62,113 shares of the company's stock, valued at $16,096,583.95. This trade represents a 0.82% decrease in their position. 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. In the last 90 days, insiders have sold 55,105 shares of company stock valued at $11,563,836. Corporate insiders own 17.20% of the company's stock.

Zscaler Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

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

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