Zscaler, Inc. $ZS Stock: Robeco Institutional Asset Management B.V. Cuts Position

Key Points

• Robeco Institutional Asset Management cut its Zscaler position by 37.8% in the third quarter, selling 71,771 shares and retaining 118,219 shares valued at approximately $23.6 million.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $240.14; 37 analysts rate the stock a Buy, compared with eight Holds and one Sell.
• Zscaler reported quarterly revenue of $898.2 million, up 24.9% year over year and above estimates, while recent company developments highlighted growth in data-security revenue and AI-security partnerships.

Robeco Institutional Asset Management B.V. lessened its position in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 37.8% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 118,219 shares of the company's stock after selling 71,771 shares during the quarter. Robeco Institutional Asset Management B.V. owned approximately 0.07% of Zscaler worth $23,575,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. Quintet Private Bank Europe S.A. grew its position in Zscaler by 4.5% in the 3rd quarter. Quintet Private Bank Europe S.A. now owns 1,170 shares of the company's stock valued at $233,000 after acquiring an additional 50 shares in the last quarter. Triumph Capital Management increased its stake in Zscaler by 6.3% during the third quarter. Triumph Capital Management now owns 923 shares of the company's stock worth $184,000 after purchasing an additional 55 shares during the period. NFSG Corp increased its stake in Zscaler by 2.6% during the third quarter. NFSG Corp now owns 2,437 shares of the company's stock worth $486,000 after purchasing an additional 62 shares during the period. Parkside Financial Bank & Trust lifted its position in shares of Zscaler by 18.8% during the second quarter. Parkside Financial Bank & Trust now owns 417 shares of the company's stock worth $59,000 after purchasing an additional 66 shares in the last quarter. Finally, Elevation Wealth Partners LLC lifted its position in shares of Zscaler by 84.3% during the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company's stock worth $31,000 after purchasing an additional 70 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the stock. Needham & Company LLC raised their price objective on shares of Zscaler from $215.00 to $255.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. BMO Capital Markets upped their target price on shares of Zscaler from $178.00 to $200.00 and gave the stock an "outperform" rating in a research note on Friday, September 4th. BTIG Research reiterated a "neutral" rating on shares of Zscaler in a report on Wednesday, October 7th. Citigroup raised their price target on shares of Zscaler from $245.00 to $260.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. Finally, Wedbush raised their price target on shares of Zscaler from $215.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, October 7th. Thirty-seven equities 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 company's stock. Based on data from MarketBeat.com, Zscaler presently has a consensus rating of "Moderate Buy" and an average target price of $240.14.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Higher price target: Freedom Broker raised its target on Zscaler from $230 to $270 while maintaining a “Buy” rating, citing continued strength across cybersecurity stocks. Freedom Broker raises Zscaler price target
• Positive Sentiment: Data-security growth: Zscaler’s Data Security annual recurring revenue surpassed $500 million and grew more than 30% year over year. Its security tools reportedly appeared in roughly 70% of “Security for AI” deals, supporting expectations for larger enterprise contracts and expansion within existing customers. Zscaler data security growth
• Positive Sentiment: AI partnership narrative: Zscaler is integrating with NVIDIA’s OpenShell architecture to help enterprises secure autonomous AI agents and sensitive data flows, linking its AI-security strategy to customer spending. NVIDIA and Zscaler AI security partnership
• Positive Sentiment: Investor interest: Hightower’s Stephanie Link reportedly purchased Zscaler shares, providing a favorable signal from an institutional investment manager. Hightower buys Zscaler shares
• Neutral Sentiment: Mixed analyst view: DA Davidson initiated coverage with a “Neutral” rating and a $215 target, below recent trading levels, tempering the more optimistic target increases. DA Davidson initiates Zscaler coverage
• Negative Sentiment: Legal investigation: Pomerantz LLP announced an investigation into potential securities-law violations on behalf of Zscaler investors. The development could increase litigation and disclosure risks, although no wrongdoing has been established. Pomerantz investigation of Zscaler

Zscaler Stock Performance

Shares of ZS opened at $255.15 on Friday. The stock has a 50-day simple moving average of $196.94 and a 200-day simple moving average of $163.22. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a market capitalization of $41.60 billion, a PE ratio of -654.23, a PEG ratio of 22.85 and a beta of 0.94. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last announced 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 business had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. During the same period in the previous year, the company posted $0.89 earnings per share. The business's revenue for the quarter 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. On average, analysts predict that Zscaler, Inc. will post 0.69 earnings per share for the current fiscal year.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 5,394 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the sale, the insider directly owned 61,525 shares of the company's stock, valued at approximately $12,305,000. This represents a 8.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 23,958 shares of the firm's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $225.43, for a total transaction of $5,400,851.94. Following the completion of the sale, the insider owned 38,308 shares in the company, valued at $8,635,772.44. The trade was a 38.48% 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 54,053 shares of company stock worth $11,256,876 over the last three months. Insiders own 17.20% of the company's stock.

About Zscaler

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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