Zscaler, Inc. $ZS Stock: VIRGINIA RETIREMENT SYSTEMS ET Al Increases Stake

Key Points

• Virginia Retirement Systems increased its Zscaler stake by 57.4% in the third quarter, owning 40,022 shares valued at approximately $7.98 million. Other institutional investors also initiated or expanded positions, with institutions holding 46.45% of the company.
• Zscaler reported quarterly earnings of $1.19 per share, exceeding the $1.09 analyst consensus, while revenue rose 24.9% year over year to $898.19 million. The stock opened at $237.83, down 4.0% in the latest trading session.
• Analysts remain broadly positive, with 36 Buy ratings, eight Holds and one Sell; the consensus rating is “Moderate Buy” with an average price target of $236.65. Meanwhile, insiders sold more than 54,000 shares worth approximately $11.3 million during the quarter.

VIRGINIA RETIREMENT SYSTEMS ET Al increased its holdings in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 57.4% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 40,022 shares of the company's stock after acquiring an additional 14,600 shares during the quarter. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in Zscaler were worth $7,981,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in the stock. Parcion Private Wealth LLC purchased a new stake in shares of Zscaler in the 3rd quarter worth about $855,000. Partners Wealth Management LLC purchased a new position in shares of Zscaler during the third quarter valued at about $263,000. Soltis Investment Advisors LLC purchased a new position in shares of Zscaler during the third quarter valued at about $439,000. Choreo LLC raised its stake in Zscaler by 46.2% in the third quarter. Choreo LLC now owns 3,040 shares of the company's stock worth $606,000 after buying an additional 960 shares in the last quarter. Finally, D.A. Davidson & CO. raised its stake in Zscaler by 12.8% in the third quarter. D.A. Davidson & CO. now owns 1,811 shares of the company's stock worth $361,000 after buying an additional 205 shares in the last quarter. Institutional investors own 46.45% of the company's stock.

Zscaler Trading Down 4.0%

Shares of NASDAQ ZS opened at $237.83 on Friday. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The firm has a 50-day moving average of $204.19 and a 200 day moving average of $167.61. The stock has a market cap of $38.78 billion, a P/E ratio of -609.82, a price-to-earnings-growth ratio of 22.61 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data 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. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business had revenue of $898.19 million for the quarter, compared to analysts' expectations of $876.96 million. During the same quarter in the prior year, the company earned $0.89 earnings per share. The business's revenue was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, sell-side analysts expect that Zscaler, Inc. will post 0.70 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have commented on the stock. TD Cowen raised their price objective on shares of Zscaler from $200.00 to $230.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. Needham & Company LLC upped their target price on Zscaler from $215.00 to $255.00 and gave the stock a "buy" rating in a report on Wednesday, October 7th. Rosenblatt Securities set a $250.00 target price on Zscaler in a research report on Wednesday, October 7th. Sanford C. Bernstein raised their target price on Zscaler from $224.00 to $298.00 and gave the company an "outperform" rating in a research note on Thursday, September 17th. Finally, Stifel Nicolaus raised their target price on Zscaler from $200.00 to $235.00 and gave the company a "buy" rating in a research note on Wednesday, October 7th. Thirty-six research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $236.65.

Insider Buying and Selling

In related news, insider Adam Geller sold 1,042 shares of the firm's stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $235.95, for a total transaction of $245,859.90. Following the completion of the transaction, the insider owned 38,308 shares of the company's stock, valued at $9,038,772.60. This trade represents a 2.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Beer sold 177 shares of Zscaler stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total value of $33,985.77. Following the transaction, the director owned 4,030 shares of the company's stock, valued at $773,800.30. The trade was a 4.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 54,064 shares of company stock worth $11,316,078. 17.20% of the stock is currently owned by corporate insiders.

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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