Rakuten Investment Management Inc. Takes Position in Zscaler, Inc. $ZS

Rakuten Investment Management Inc. purchased a new position in Zscaler, Inc. (NASDAQ:ZS) during the third quarter, Holdings Channel reports. The firm purchased 41,022 shares of the company’s stock, valued at approximately $12,293,000.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Federated Hermes Inc. increased its holdings in Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock valued at $367,932,000 after buying an additional 888,888 shares during the period. Vanguard Group Inc. boosted its position in shares of Zscaler by 8.3% during the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after acquiring an additional 824,626 shares in the last quarter. Skandinaviska Enskilda Banken AB publ increased its stake in Zscaler by 167.7% in the second quarter. Skandinaviska Enskilda Banken AB publ now owns 421,393 shares of the company’s stock valued at $132,250,000 after acquiring an additional 263,982 shares during the last quarter. 1832 Asset Management L.P. raised its position in Zscaler by 131.4% during the second quarter. 1832 Asset Management L.P. now owns 461,800 shares of the company’s stock valued at $144,977,000 after purchasing an additional 262,200 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. lifted its stake in Zscaler by 421.9% during the second quarter. Robeco Institutional Asset Management B.V. now owns 323,351 shares of the company’s stock worth $101,513,000 after purchasing an additional 261,390 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

Zscaler Trading Up 1.1%

ZS opened at $208.66 on Thursday. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler, Inc. has a fifty-two week low of $164.78 and a fifty-two week high of $336.99. The company’s 50 day moving average price is $240.68 and its two-hundred day moving average price is $275.50. The firm has a market capitalization of $33.28 billion, a price-to-earnings ratio of -802.51, a PEG ratio of 3,391.00 and a beta of 1.02.

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

Insider Activity

In other Zscaler news, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the sale, the executive vice president owned 70,394 shares in the company, valued at approximately $16,248,343.08. The trade was a 4.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert Schlossman sold 3,200 shares of the stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $325.00, for a total value of $1,040,000.00. Following the completion of the sale, the insider directly owned 80,086 shares of the company’s stock, valued at approximately $26,027,950. The trade was a 3.84% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 22,550 shares of company stock worth $5,511,509. 17.20% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have recently issued reports on ZS shares. Loop Capital set a $320.00 price target on Zscaler in a research note on Thursday, December 11th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Zscaler in a research report on Wednesday, November 26th. Barclays boosted their target price on Zscaler from $320.00 to $350.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 12th. Bank of America reduced their price target on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Finally, Scotiabank decreased their price target on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a report on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $317.63.

About Zscaler

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.