Sanctuary Advisors LLC Acquires Shares of 14,005 Zscaler, Inc. $ZS

Sanctuary Advisors LLC acquired a new stake in Zscaler, Inc. (NASDAQ:ZS) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 14,005 shares of the company’s stock, valued at approximately $1,977,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in ZS. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler in the 2nd quarter valued at $102,271,000. Meiji Yasuda Asset Management Co Ltd. acquired a new position in Zscaler during the second quarter worth $244,000. Bank of Nova Scotia purchased a new position in Zscaler during the second quarter valued at $35,782,000. Elevation Point Wealth Partners LLC purchased a new position in Zscaler during the second quarter valued at $274,000. Finally, Daiichi Life Insurance Co. Ltd. purchased a new position in Zscaler during the second quarter valued at $663,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: JPMorgan raised its price target on Zscaler from $205 to $215 and maintained an “overweight” rating, implying substantial upside from recent trading levels. Benzinga report
• Positive Sentiment: Zscaler participated in Deep Cogito’s $43 million Series A financing. The investment gives Zscaler exposure to a startup developing reinforcement-learning and self-improving AI models, potentially supporting the company’s broader AI and cybersecurity strategy. Deep Cogito funding announcement
• Positive Sentiment: Guggenheim reaffirmed its “Buy” rating, adding another supportive analyst opinion as investors assess Zscaler’s growth prospects. Guggenheim rating report
• Neutral Sentiment: Analyst sentiment is mixed ahead of earnings. Reports highlight strong AI-driven expectations across cybersecurity stocks, increasing the potential for volatility if Zscaler’s fiscal fourth-quarter results or outlook fall short. Cybersecurity stocks earnings report
• Negative Sentiment: Evercore added Zscaler to its tactical underperform list ahead of the fiscal fourth-quarter report, signaling concern that the stock’s valuation and elevated expectations may limit near-term upside. Evercore tactical underperform report
• Negative Sentiment: CFO Kevin Rubin sold 503 shares worth approximately $87,210 under a pre-arranged Rule 10b5-1 trading plan. The transaction was small relative to his remaining holdings and appears more routine than an indication of changing company fundamentals, but it can still attract modest selling scrutiny. SEC insider trading filing

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 503 shares of Zscaler stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total value of $87,210.14. Following the completion of the sale, the chief financial officer owned 40,895 shares in the company, valued at approximately $7,090,375.10. This trade represents a 1.22% decrease in their position. The transaction 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, insider Robert Schlossman sold 3,146 shares of the business’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 $397,748.78. Following the completion of the sale, the insider directly owned 69,366 shares in the company, valued at approximately $8,769,943.38. The trade was a 4.34% 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. Insiders sold a total of 16,772 shares of company stock valued at $2,139,799 over the last 90 days. Insiders own 17.20% of the company’s stock.

Zscaler Stock Up 1.1%

Shares of ZS opened at $170.31 on Thursday. The firm has a market cap of $27.54 billion, a P/E ratio of -354.81, a price-to-earnings-growth ratio of 99.13 and a beta of 0.94. Zscaler, Inc. has a 12-month low of $114.63 and a 12-month high of $336.99. The company’s 50-day moving average price is $153.75 and its 200 day moving average price is $149.99. 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 (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share 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 analyst estimates of $835.14 million. During the same quarter last year, the firm posted $0.84 earnings per share. Zscaler’s revenue was up 25.4% compared to the same quarter last year. On average, sell-side analysts forecast that Zscaler, Inc. will post 0.13 earnings per share for the current year.

Analyst Ratings Changes

ZS has been the topic of a number of research reports. Evercore set a $155.00 price target on shares of Zscaler and gave the company an “in-line” rating in a research note on Wednesday, May 27th. Wells Fargo & Company increased their target price on Zscaler from $180.00 to $210.00 and gave the company an “overweight” rating in a report on Monday, August 17th. Morgan Stanley lowered their price target on Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft reduced their price objective on Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. Finally, Scotiabank lowered their target price on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and an average target price of $216.18.

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.