Saba Capital Management L.P. Makes New $1.26 Million Investment in Zscaler, Inc. $ZS

Saba Capital Management L.P. acquired a new position in shares of Zscaler, Inc. (NASDAQ:ZS) during the first quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 9,009 shares of the company’s stock, valued at approximately $1,264,000.

Several other institutional investors have also recently made changes to their positions in ZS. Westport Asset Management Inc. acquired a new position in shares of Zscaler in the 1st quarter valued at $631,000. OMERS ADMINISTRATION Corp grew its position in Zscaler by 27.1% during the first quarter. OMERS ADMINISTRATION Corp now owns 4,784 shares of the company’s stock valued at $671,000 after buying an additional 1,020 shares during the period. Entropy Technologies LP grew its position in Zscaler by 435.2% during the first quarter. Entropy Technologies LP now owns 11,877 shares of the company’s stock valued at $1,666,000 after buying an additional 9,658 shares during the period. Renaissance Technologies LLC increased its holdings in Zscaler by 112.8% in the first quarter. Renaissance Technologies LLC now owns 230,460 shares of the company’s stock valued at $32,331,000 after buying an additional 122,160 shares in the last quarter. Finally, Sei Investments Co. increased its holdings in Zscaler by 27.8% in the first quarter. Sei Investments Co. now owns 101,728 shares of the company’s stock valued at $14,271,000 after buying an additional 22,115 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Stock Up 3.5%

ZS stock opened at $147.30 on Tuesday. 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 firm has a 50-day simple moving average of $142.51 and a 200-day simple moving average of $155.86. The stock has a market capitalization of $23.82 billion, a P/E ratio of -306.87, a P/E/G ratio of 81.56 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same period last year, the company posted $0.84 EPS. Zscaler’s quarterly revenue 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. Equities analysts forecast that Zscaler, Inc. will post 0.12 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

ZS has been the topic of several recent analyst reports. Morgan Stanley lowered their target price on shares of Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 27th. Citizens Jmp cut their price target on Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. B. Riley Financial reduced their price target on Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Mizuho lowered their price target on Zscaler from $210.00 to $185.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 27th. Finally, Piper Sandler lowered 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. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $214.21.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the sale, the insider directly owned 69,366 shares of the company’s stock, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the sale, the chief executive officer owned 343,038 shares of the company’s stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 15,766 shares of company stock worth $1,978,587 over the last three months. 17.20% of the stock is owned by insiders.

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.