T. Rowe Price Investment Management Inc. Cuts Stake in Zscaler, Inc. $ZS

T. Rowe Price Investment Management Inc. reduced its stake in Zscaler, Inc. (NASDAQ:ZS) by 14.6% during the fourth quarter, HoldingsChannel.com reports. The fund owned 1,928,098 shares of the company’s stock after selling 329,402 shares during the quarter. T. Rowe Price Investment Management Inc.’s holdings in Zscaler were worth $433,668,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Integrated Wealth Concepts LLC increased its position in Zscaler by 19.9% in the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after purchasing an additional 239 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Zscaler during the second quarter valued at $252,000. Finally, Jump Financial LLC purchased a new stake in Zscaler in the 2nd quarter valued at about $3,019,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler unveiled new zero-trust tools designed to monitor and secure AI agent workflows, reinforcing its position in a fast-growing cybersecurity niche and supporting the company’s long-term growth story. Zscaler introduces new zero trust tools to monitor and secure AI agent workflows
• Positive Sentiment: Commentary around AI agents and cybersecurity framed Zscaler as a potential winner from the shift toward AI-powered security spending, which may help sentiment on the stock. AI agents are changing cybersecurity forever. Zscaler is positioning itself to win big.
• Neutral Sentiment: Several insider sales were disclosed, including by the CEO, CFO, and a director, but the filings say the trades were tied to pre-arranged plans and tax withholding related to equity vesting, which limits the signal of bearish insider sentiment.
• Neutral Sentiment: Analyst commentary remains mixed, with some media asking whether it is time to cash out, while other reports still point to upside potential; this helps explain why shares may be volatile rather than moving on a single clear catalyst. Is it time to cash out of Zscaler?
• Negative Sentiment: Two shareholder-law firms, Pomerantz and Schall, announced investigations into possible securities-law issues at Zscaler, adding legal overhang and investor caution even though no wrongdoing has been proven.

Zscaler Trading Up 0.4%

ZS opened at $124.85 on Friday. The firm has a market cap of $20.19 billion, a price-to-earnings ratio of -260.10, a PEG ratio of 77.77 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a fifty day moving average price of $141.51 and a 200-day moving average price of $173.33.

Zscaler (NASDAQ:ZS) last issued 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. 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 during the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the prior year, the business posted $0.84 EPS. The firm’s quarterly revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, equities research analysts anticipate that Zscaler, Inc. will post 0.11 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Kevin Rubin sold 1,686 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The shares were 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. The trade was a 3.62% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 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 transaction of $245,274.20. Following the completion of the transaction, the insider directly owned 45,131 shares in the company, valued at approximately $5,705,912.33. The trade was a 4.12% decrease in their position. 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. In the last ninety days, insiders sold 9,827 shares of company stock valued at $1,242,263. Corporate insiders own 17.20% of the company’s stock.

Analysts Set New Price Targets

ZS has been the subject of a number of research reports. The Goldman Sachs Group reiterated a “neutral” rating and issued a $179.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Truist Financial set a $210.00 target price on Zscaler in a research report on Wednesday, May 27th. Guggenheim reaffirmed a “buy” rating and set a $214.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Mizuho lowered their target price on Zscaler from $210.00 to $185.00 and set an “outperform” rating for the company in a report on Wednesday, May 27th. Finally, Deutsche Bank Aktiengesellschaft dropped their price target on Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. Thirty-four 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. Based on data from MarketBeat.com, the stock currently 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.