Hennessy Advisors Inc. Buys New Position in Zscaler, Inc. $ZS

Hennessy Advisors Inc. purchased a new position in shares of Zscaler, Inc. (NASDAQ:ZS) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 518 shares of the company’s stock, valued at approximately $163,000.

Other large investors also recently bought and sold shares of the company. ORG Partners LLC lifted its position in shares of Zscaler by 284.8% during the first quarter. ORG Partners LLC now owns 127 shares of the company’s stock worth $26,000 after purchasing an additional 94 shares in the last quarter. SVB Wealth LLC purchased a new stake in Zscaler during the 1st quarter worth $26,000. Goodman Advisory Group LLC acquired a new position in Zscaler in the 1st quarter worth $29,000. N.E.W. Advisory Services LLC purchased a new position in Zscaler in the 1st quarter valued at about $29,000. Finally, CVA Family Office LLC grew its stake in shares of Zscaler by 120.3% during the first quarter. CVA Family Office LLC now owns 152 shares of the company’s stock valued at $30,000 after acquiring an additional 83 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler Trading Down 0.7%

Zscaler stock opened at $305.41 on Monday. Zscaler, Inc. has a 1 year low of $164.78 and a 1 year high of $318.46. The firm’s 50-day moving average is $282.18 and its 200-day moving average is $264.40. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. The company has a market cap of $48.35 billion, a P/E ratio of -1,131.15 and a beta of 1.06.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.80 by $0.09. The firm had revenue of $719.23 million for the quarter, compared to analysts’ expectations of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. Zscaler’s revenue was up 21.3% on a year-over-year basis. During the same quarter last year, the company posted $0.88 earnings per share. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, equities analysts expect that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Activity

In related news, CEO Jagtar Singh Chaudhry sold 2,865 shares of the stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $804,205.50. Following the sale, the chief executive officer owned 350,700 shares of the company’s stock, valued at $98,441,490. This trade represents a 0.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adam Geller sold 11,193 shares of the firm’s stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $3,141,875.10. Following the completion of the sale, the insider owned 53,942 shares in the company, valued at $15,141,519.40. The trade was a 17.18% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 39,884 shares of company stock worth $11,406,825. 18.10% of the stock is owned by insiders.

Wall Street Analyst Weigh In

ZS has been the topic of several recent analyst reports. JMP Securities reiterated a “market outperform” rating and issued a $355.00 price target on shares of Zscaler in a research note on Wednesday, September 3rd. KeyCorp increased their target price on Zscaler from $345.00 to $350.00 and gave the company an “overweight” rating in a research note on Wednesday, September 3rd. Evercore ISI raised their price target on shares of Zscaler from $290.00 to $320.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 3rd. Scotiabank cut their price target on shares of Zscaler from $360.00 to $334.00 and set a “sector outperform” rating on the stock in a report on Wednesday, September 3rd. Finally, Barclays increased their price objective on shares of Zscaler from $300.00 to $320.00 and gave the company an “overweight” rating in a research note on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight 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 a consensus target price of $307.43.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.