GSA Capital Partners LLP Takes Position in Zscaler, Inc. $ZS

GSA Capital Partners LLP acquired a new stake in Zscaler, Inc. (NASDAQ:ZS) in the second quarter, Holdings Channel reports. The firm acquired 5,550 shares of the company’s stock, valued at approximately $783,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Avalon Trust Co bought a new stake in shares of Zscaler in the 2nd quarter valued at about $160,000. Bank Hapoalim BM acquired a new stake in Zscaler during the 2nd quarter valued at approximately $2,666,000. Investors Research Corp acquired a new stake in Zscaler during the 2nd quarter valued at approximately $251,000. Handelsbanken Fonder AB raised its holdings in Zscaler by 89.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock worth $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Finally, Allied Private Wealth LLC bought a new position in Zscaler during the 2nd quarter worth approximately $103,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Multiple analysts raised their targets. Mizuho lifted its price target from $185 to $210 and upgraded Zscaler to Outperform. Stifel raised its target from $175 to $200 and assigned a Buy rating, while Cantor Fitzgerald reaffirmed its Overweight rating with a $225 target. These actions suggest analysts see meaningful upside from current levels. Benzinga analyst actions StreetInsider Cantor Fitzgerald commentary
• Positive Sentiment: Expanded Carahsoft partnership could broaden Zscaler’s customer reach. The companies are extending distribution of Zscaler’s Zero Trust Exchange to U.S. small and mid-sized businesses and the mid-market, potentially increasing channel access and future revenue opportunities. Zscaler and Carahsoft partnership announcement
• Positive Sentiment: Oppenheimer expects a modest fiscal fourth-quarter upside. The view supports expectations that Zscaler may slightly exceed quarterly results, though investors are also focused on the company’s forward outlook. Oppenheimer fiscal fourth-quarter outlook
• Neutral Sentiment: Analyst commentary remains broadly bullish, with Zscaler’s average brokerage recommendation equivalent to a Buy. However, the concentration of optimistic ratings may limit the impact of additional upgrades if expectations are already reflected in the stock. Zacks analyst recommendation analysis
• Negative Sentiment: Some analysis favors Okta over Zscaler because of Okta’s steadier growth, lower valuation and cross-selling opportunities. Zscaler’s high valuation and losses leave the stock more sensitive to any slowdown or disappointing guidance. Zscaler versus Okta analysis

Insider Activity at Zscaler

In other news, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares in the company, valued at $43,370,294.34. This trade represents a 0.83% 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. Over the last three months, insiders have sold 16,269 shares of company stock valued at $2,052,589. Company insiders own 17.20% of the company’s stock.

Zscaler Price Performance

Zscaler stock opened at $184.60 on Thursday. The stock has a market capitalization of $29.85 billion, a price-to-earnings ratio of -384.58, a PEG ratio of 66.84 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 stock’s 50 day moving average price is $149.08 and its two-hundred day moving average price is $150.50. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86.

Zscaler (NASDAQ:ZS) last announced 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 net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the firm posted $0.84 EPS. The company’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. On average, equities analysts predict that Zscaler, Inc. will post 0.12 earnings per share for the current year.

Wall Street Analysts Forecast Growth

ZS has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 27th. Mizuho lifted their target price on shares of Zscaler from $185.00 to $210.00 and gave the stock an “outperform” rating in a research note on Wednesday. Scotiabank dropped their target price on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating on the stock in a report on Wednesday, May 27th. Rosenblatt Securities reaffirmed a “buy” rating and set a $200.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Stephens reiterated an “overweight” rating and set a $200.00 price target on shares of Zscaler in a report on Friday, June 12th. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and a consensus target price of $214.72.

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.