Wealthfront Advisers LLC Makes New Investment in Zscaler, Inc. $ZS

Wealthfront Advisers LLC purchased a new position in Zscaler, Inc. (NASDAQ:ZS) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 6,645 shares of the company’s stock, valued at approximately $938,000.

Several other hedge funds also recently made changes to their positions in ZS. Handelsbanken Fonder AB boosted its position in shares of Zscaler by 89.6% in the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock valued at $8,601,000 after acquiring an additional 28,792 shares during the period. Assenagon Asset Management S.A. increased its holdings in Zscaler by 6.6% during the 2nd quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock worth $27,284,000 after acquiring an additional 11,941 shares during the period. Oxbow Advisors LLC purchased a new stake in Zscaler in the 4th quarter worth approximately $2,939,000. Qsemble Capital Management LP lifted its stake in Zscaler by 105.5% in the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Finally, Bank of America Corp DE boosted its holdings in Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock valued at $109,320,000 after purchasing an additional 239,326 shares during the period. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Zscaler news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider directly owned 42,314 shares in the company, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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 firm’s 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 $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. The trade was 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 90 days, insiders sold 16,269 shares of company stock worth $2,052,589. 17.20% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Zscaler in a research report on Tuesday, June 9th. Evercore set a $155.00 price objective on Zscaler and gave the stock an “in-line” rating in a research report on Wednesday, May 27th. TD Cowen lifted their price objective on Zscaler from $180.00 to $200.00 and gave the company a “buy” rating in a research note on Monday. Deutsche Bank Aktiengesellschaft decreased their target price on Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $150.00 price target on shares of Zscaler in a report on Thursday, June 11th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $215.36.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyBanc raised its price target to $210 from a lower prior target, citing what it views as a valuation discount and potential for the cybersecurity company to regain investor confidence. KeyBanc upgrades Zscaler price target
• Positive Sentiment: Additional bullish analyst actions supported the stock. Mizuho lifted its price target to $210, Stifel Nicolaus raised its target to $200, and Cantor Fitzgerald assigned Zscaler an “Overweight” rating. The actions suggest Wall Street sees upside despite the stock’s sharp decline from its 52-week high. Mizuho raises Zscaler price target Stifel raises Zscaler price target Cantor Fitzgerald rates Zscaler Overweight
• Positive Sentiment: Rising AI-driven cyber threats reinforce demand for Zscaler’s platform. NTT DATA CEO Abhijit Dubey said frontier AI is making attacks more sophisticated, expanding the attack surface, and accelerating attacks to machine speed—an industry trend that could increase demand for cloud-based zero-trust security. AI and cybersecurity threats
• Positive Sentiment: Zscaler’s expanded Carahsoft partnership targets U.S. small and midsize businesses with standardized bundles, simpler pricing, and broader partner enablement. The initiative could diversify Zscaler’s customer base and create an additional growth channel beyond large enterprises. Zscaler and Carahsoft SMB partnership
• Negative Sentiment: AI-lab IPO speculation remains a risk to sentiment. Reports that Anthropic may pursue a massive public offering renewed concerns that investors could redirect capital from enterprise software stocks toward AI companies, contributing to recent pressure on Zscaler. Zscaler and AI IPO concerns

Zscaler Stock Up 3.9%

Shares of NASDAQ ZS opened at $181.74 on Friday. Zscaler, Inc. has a one year low of $114.63 and a one year high of $336.99. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The firm’s 50 day simple moving average is $151.10 and its two-hundred day simple moving average is $150.54. The stock has a market capitalization of $29.39 billion, a P/E ratio of -378.62, a PEG ratio of 68.66 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $835.14 million. During the same period last year, the firm earned $0.84 earnings per share. The company’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. As a group, analysts expect that Zscaler, Inc. will post 0.12 EPS for the current fiscal year.

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.