Zweig DiMenna Associates LLC Sells 33,946 Shares of Zscaler, Inc. (NASDAQ:ZS)

Key Points

• Zweig DiMenna Associates LLC reduced its holdings in Zscaler, Inc. by 43.6%, selling 33,946 shares during the first quarter, leaving them with 43,995 shares valued at approximately $8.7 million.
• Zscaler reported a quarterly earnings per share of $0.84, exceeding analysts' estimates of $0.76, with revenues of $678.03 million, a 22.6% increase year-over-year.
• Multiple analysts have recently increased their price targets for Zscaler, with a consensus rating of "Moderate Buy" and an average target price of $296.82.

Zweig DiMenna Associates LLC cut its stake in Zscaler, Inc. (NASDAQ:ZS - Free Report) by 43.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 43,995 shares of the company's stock after selling 33,946 shares during the period. Zscaler comprises about 1.4% of Zweig DiMenna Associates LLC's investment portfolio, making the stock its 27th largest position. Zweig DiMenna Associates LLC's holdings in Zscaler were worth $8,729,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in the stock. Envestnet Portfolio Solutions Inc. acquired a new stake in Zscaler during the 4th quarter valued at approximately $213,000. Quantbot Technologies LP purchased a new stake in Zscaler in the 4th quarter valued at about $336,000. Congress Wealth Management LLC DE purchased a new stake in Zscaler during the fourth quarter worth about $221,000. Corebridge Financial Inc. increased its holdings in Zscaler by 0.5% during the 4th quarter. Corebridge Financial Inc. now owns 11,695 shares of the company's stock worth $2,110,000 after purchasing an additional 54 shares during the period. Finally, Korea Investment CORP increased its holdings in Zscaler by 144.3% in the fourth quarter. Korea Investment CORP now owns 136,160 shares of the company's stock valued at $24,565,000 after buying an additional 80,416 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Insider Activity

In other Zscaler news, insider Syam Nair sold 28,947 shares of Zscaler stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $250.00, for a total transaction of $7,236,750.00. Following the completion of the sale, the insider owned 110,566 shares of the company's stock, valued at $27,641,500. The trade was a 20.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Ajay Mangal sold 120,000 shares of the business's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $300.89, for a total value of $36,106,800.00. Following the completion of the sale, the insider owned 2,550,210 shares of the company's stock, valued at $767,332,686.90. The trade was a 4.49% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 200,793 shares of company stock valued at $58,752,794. 18.10% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on ZS shares. Stifel Nicolaus lifted their target price on shares of Zscaler from $270.00 to $295.00 and gave the company a "buy" rating in a report on Friday, May 30th. Scotiabank raised their target price on shares of Zscaler from $310.00 to $360.00 and gave the stock a "sector outperform" rating in a research report on Friday, June 6th. Truist Financial reiterated a "buy" rating and issued a $300.00 target price (up previously from $260.00) on shares of Zscaler in a report on Friday, May 30th. BNP Paribas upgraded Zscaler from a "neutral" rating to an "outperform" rating and set a $260.00 price objective on the stock in a research note on Monday, April 28th. Finally, Bank of America boosted their price target on Zscaler from $285.00 to $340.00 and gave the stock a "buy" rating in a research note on Monday, June 9th. Seven research analysts have rated the stock with a hold rating, twenty-nine have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $296.82.

Zscaler Stock Up 0.7%

Shares of NASDAQ ZS traded up $1.88 during midday trading on Friday, hitting $286.18. 1,001,220 shares of the company's stock were exchanged, compared to its average volume of 1,856,509. The company's 50 day moving average price is $291.76 and its 200 day moving average price is $234.80. Zscaler, Inc. has a 12 month low of $153.45 and a 12 month high of $318.46. The firm has a market capitalization of $44.56 billion, a PE ratio of -1,100.69 and a beta of 1.11.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative net margin of 1.52% and a negative return on equity of 0.59%. The business had revenue of $678.03 million during the quarter, compared to analyst estimates of $667.13 million. During the same quarter last year, the business earned $0.88 EPS. The firm's quarterly revenue was up 22.6% on a year-over-year basis. On average, equities research analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current year.

Zscaler Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.