Sanctuary Advisors LLC Invests $1.98 Million in Zscaler, Inc. $ZS

Sanctuary Advisors LLC acquired a new stake in Zscaler, Inc. (NASDAQ:ZS) in the 2nd quarter, HoldingsChannel reports. The fund acquired 14,005 shares of the company’s stock, valued at approximately $1,977,000.

A number of other institutional investors have also recently made changes to their positions in the business. Integrated Wealth Concepts LLC increased its stake in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after buying an additional 239 shares during the period. NewEdge Advisors LLC boosted its position in Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after buying an additional 370 shares during the period. Empowered Funds LLC grew its stake in shares of Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Zscaler in the second quarter worth $252,000. Finally, Jump Financial LLC acquired a new position in shares of Zscaler in the second quarter worth $3,019,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Insider Activity at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at $43,370,294.34. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider owned 69,366 shares in the company, valued at $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 16,772 shares of company stock worth $2,139,799. Corporate insiders own 17.20% of the company’s stock.

Zscaler Stock Performance

Shares of ZS opened at $170.31 on Thursday. The company has a market capitalization of $27.54 billion, a price-to-earnings ratio of -354.81, a price-to-earnings-growth ratio of 99.13 and a beta of 0.94. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a 50 day moving average price of $153.75 and a 200 day moving average price of $149.99.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter last year, the company earned $0.84 earnings per share. Research analysts predict that Zscaler, Inc. will post 0.13 EPS for the current fiscal year.

Analysts Set New Price Targets

ZS has been the topic of several analyst reports. Citizens Jmp reduced their price objective on Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st. FBN Securities reissued an “outperform” rating and set a $175.00 target price on shares of Zscaler in a research note on Wednesday, May 27th. Wells Fargo & Company upped their price target on Zscaler from $180.00 to $210.00 and gave the stock an “overweight” rating in a report on Monday, August 17th. Piper Sandler reduced their price target on Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a research report on Wednesday, May 27th. Finally, BMO Capital Markets decreased their price objective on Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $216.18.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: JPMorgan raised its price target on Zscaler from $205 to $215 and maintained an “overweight” rating, implying substantial upside from recent trading levels. Benzinga report
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment gives Zscaler exposure to a startup developing reinforcement-learning and self-improving AI models, potentially supporting the company’s broader AI and cybersecurity strategy. Deep Cogito funding announcement
• Positive Sentiment: Guggenheim reaffirmed its “Buy” rating, adding another supportive analyst opinion as investors assess Zscaler’s growth prospects. Guggenheim rating report
• Neutral Sentiment: Analyst sentiment is mixed ahead of earnings. Reports highlight strong AI-driven expectations across cybersecurity stocks, increasing the potential for volatility if Zscaler’s fiscal fourth-quarter results or outlook fall short. Cybersecurity stocks earnings report
• Negative Sentiment: Evercore added Zscaler to its tactical underperform list ahead of the fiscal fourth-quarter report, signaling concern that the stock’s valuation and elevated expectations may limit near-term upside. Evercore tactical underperform report
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 trading plan. The transaction was small relative to his remaining holdings and appears more routine than an indication of changing company fundamentals, but it can still attract modest selling scrutiny. SEC insider trading filing

Zscaler 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.