LaFleur & Godfrey LLC Cuts Position in Zscaler, Inc. $ZS

LaFleur & Godfrey LLC lowered its holdings in shares of Zscaler, Inc. (NASDAQ:ZS) by 8.2% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 54,619 shares of the company’s stock after selling 4,850 shares during the quarter. Zscaler makes up 2.0% of LaFleur & Godfrey LLC’s holdings, making the stock its 15th largest position. LaFleur & Godfrey LLC’s holdings in Zscaler were worth $16,367,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of ZS. Bessemer Group Inc. raised its stake in shares of Zscaler by 3.2% during the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock worth $306,000 after buying an additional 32 shares during the period. Cox Capital Mgt LLC grew its stake in Zscaler by 0.6% in the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after acquiring an additional 33 shares during the period. Brookstone Capital Management increased its holdings in Zscaler by 3.7% in the 3rd quarter. Brookstone Capital Management now owns 936 shares of the company’s stock worth $280,000 after acquiring an additional 33 shares in the last quarter. Wedbush Securities Inc. increased its holdings in Zscaler by 0.7% in the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, 180 Wealth Advisors LLC raised its position in Zscaler by 0.5% during the third quarter. 180 Wealth Advisors LLC now owns 7,897 shares of the company’s stock worth $2,366,000 after acquiring an additional 36 shares during the period. 46.45% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have recently issued reports on ZS. Stifel Nicolaus dropped their target price on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Scotiabank reduced their price target on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research report on Wednesday, November 26th. JPMorgan Chase & Co. decreased their price target on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research note on Friday. Citizens Jmp reiterated a “market outperform” rating and set a $355.00 price objective on shares of Zscaler in a research note on Wednesday, November 26th. Finally, Wedbush raised their target price on Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a research report on Monday, November 10th. One analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $304.78.

Zscaler Stock Down 5.5%

Shares of NASDAQ:ZS opened at $159.75 on Monday. Zscaler, Inc. has a 52-week low of $159.66 and a 52-week high of $336.99. The stock has a market cap of $25.48 billion, a P/E ratio of -614.40, a PEG ratio of 325.66 and a beta of 1.02. The business has a fifty day moving average of $206.73 and a two-hundred day moving average of $259.15. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. During the same quarter in the previous year, the firm earned $0.77 EPS. The company’s quarterly revenue was up 25.5% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, research analysts expect that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 3,303 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $762,398.46. Following the completion of the sale, the chief financial officer owned 48,161 shares of the company’s stock, valued at $11,116,522.02. This represents a 6.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Adam Geller sold 2,060 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $475,489.20. Following the sale, the insider owned 52,148 shares of the company’s stock, valued at $12,036,801.36. This represents a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,350 shares of company stock worth $4,471,509 over the last ninety days. 17.20% of the stock is currently owned by insiders.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, expanding ZS’s local presence, channel engagement and potential enterprise/government pipeline in a fast-growing market. Article Title
• Positive Sentiment: Zscaler’s Z‑Flex bookings jumped ~70% sequentially to $175M in Q1 FY26 — a sign of larger, multi‑year deals that could boost revenue visibility and margin leverage over time. Article Title
• Positive Sentiment: Management is pushing an AI security suite to address rising enterprise AI risks — product innovation that supports upsell opportunities and differentiates ZS’s platform approach. Article Title
• Neutral Sentiment: India is debating new cyber rules amid growing AI-driven threats; regulatory change could increase enterprise security spending but also introduce compliance complexity. This is a macro/regulatory factor to monitor for regional demand. Article Title
• Neutral Sentiment: JPMorgan cut its price target for ZS from $354 to $267 but kept an Overweight rating — a sizable PT reduction that tempers upside expectations while still signaling conviction in the name. Article Title
• Neutral Sentiment: Comparisons with peers (e.g., Qualys) highlight valuation and execution tradeoffs: ZS’s faster growth vs. some peers’ steadier margins and cheaper multiples — useful context for relative positioning. Article Title
• Negative Sentiment: Analyst note (Seeking Alpha summary) warns Cloudflare is taking share on RPO growth and net retention, and that Palo Alto’s M&A momentum intensifies competition — heightening investor fear of share loss and margin pressure. Article Title
• Negative Sentiment: Truist lowered expectations for Zscaler, adding to a string of cautious analyst notes that have pressured sentiment despite recent beat-and-raise results. Article Title

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.