Capital Impact Advisors LLC Acquires New Shares in Zscaler, Inc. $ZS

Capital Impact Advisors LLC acquired a new stake in shares of Zscaler, Inc. (NASDAQ:ZS) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 141,188 shares of the company’s stock, valued at approximately $31,756,000. Zscaler comprises about 2.5% of Capital Impact Advisors LLC’s holdings, making the stock its 22nd largest holding. Capital Impact Advisors LLC owned approximately 0.09% of Zscaler at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler during the third quarter valued at $25,000. AlphaCentric Advisors LLC bought a new position in Zscaler in the fourth quarter valued at about $29,000. Picton Mahoney Asset Management bought a new position in Zscaler in the third quarter valued at about $30,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler in the fourth quarter valued at about $30,000. Finally, Family CFO Inc bought a new position in Zscaler in the fourth quarter valued at about $34,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Robert W. Baird reiterated a Buy rating on Zscaler and set a $230 price target, implying substantial upside from current levels. Short Sellers May Regret Shorting ZScaler (ZS) As One Analyst Points To 79% Upside
• Positive Sentiment: Zscaler said it expanded Project AI-Guardian with major technology alliance partners, a move that supports its product ecosystem and could help long-term growth. Zscaler (ZS) Adds Major Tech Partners to Project AI-Guardian
• Neutral Sentiment: Jim Cramer said SaaS names like Zscaler have fallen out of favor on Wall Street, which highlights weak sentiment toward the sector but does not change fundamentals directly. Jim Cramer Says SaaS Companies Like Zscaler “Have Fallen Viciously Out of Favor on Wall Street”
• Negative Sentiment: The Schall Law Firm and Pomerantz LLP both announced investigations into Zscaler over possible securities-law violations, adding legal overhang for the stock. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm
• Negative Sentiment: Several executives and directors, including the CEO, CFO, and other insiders, disclosed stock sales. While most were tied to tax withholding or pre-arranged plans, multiple sales in one day can still weigh on investor sentiment. SEC filing for CEO sale

Zscaler Stock Down 2.2%

NASDAQ ZS opened at $124.38 on Thursday. The stock’s 50-day moving average price is $141.85 and its 200-day moving average price is $174.22. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market capitalization of $20.11 billion, a P/E ratio of -259.12, a price-to-earnings-growth ratio of 79.55 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the company earned $0.84 earnings per share. The business’s revenue for the quarter was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities research analysts predict that Zscaler, Inc. will post 0.11 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 1,686 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $213,160.98. Following the transaction, the chief financial officer owned 44,901 shares of the company’s stock, valued at $5,676,833.43. This trade represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 1,940 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $245,274.20. Following the completion of the transaction, the insider directly owned 45,131 shares in the company, valued at $5,705,912.33. This trade represents a 4.12% decrease in their position. 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. Insiders sold 9,827 shares of company stock worth $1,242,263 over the last ninety days. 17.20% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research firms have weighed in on ZS. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 target price on shares of Zscaler in a report on Wednesday, June 10th. UBS Group lowered their target price on Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. JPMorgan Chase & Co. lowered their target price on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a report on Wednesday, May 27th. Piper Sandler lowered their target price on Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a report on Wednesday, May 27th. Finally, Zacks Research raised Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $214.33.

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.