LaFleur & Godfrey LLC Cuts Stock Position in Zscaler, Inc. $ZS

LaFleur & Godfrey LLC lessened its position in shares of Zscaler, Inc. (NASDAQ:ZS) by 8.2% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 54,619 shares of the company’s stock after selling 4,850 shares during the quarter. Zscaler comprises 2.0% of LaFleur & Godfrey LLC’s holdings, making the stock its 15th biggest position. LaFleur & Godfrey LLC’s holdings in Zscaler were worth $16,367,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of ZS. Bessemer Group Inc. lifted its holdings in shares of Zscaler by 3.2% during the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares during the last quarter. Cox Capital Mgt LLC increased its position in Zscaler by 0.6% during the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after buying an additional 33 shares in the last quarter. Brookstone Capital Management raised its stake in Zscaler by 3.7% in the third quarter. Brookstone Capital Management now owns 936 shares of the company’s stock valued at $280,000 after buying an additional 33 shares during the last quarter. Wedbush Securities Inc. raised its stake in Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after buying an additional 34 shares during the last quarter. Finally, 180 Wealth Advisors LLC boosted its holdings in Zscaler by 0.5% in the third quarter. 180 Wealth Advisors LLC now owns 7,897 shares of the company’s stock worth $2,366,000 after acquiring an additional 36 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, expanding ZS’s local presence, channel engagement and potential enterprise/government pipeline in a fast-growing market. Article Title
• Positive Sentiment: Zscaler’s Z‑Flex bookings jumped ~70% sequentially to $175M in Q1 FY26 — a sign of larger, multi‑year deals that could boost revenue visibility and margin leverage over time. Article Title
• Positive Sentiment: Management is pushing an AI security suite to address rising enterprise AI risks — product innovation that supports upsell opportunities and differentiates ZS’s platform approach. Article Title
• Neutral Sentiment: India is debating new cyber rules amid growing AI-driven threats; regulatory change could increase enterprise security spending but also introduce compliance complexity. This is a macro/regulatory factor to monitor for regional demand. Article Title
• Neutral Sentiment: JPMorgan cut its price target for ZS from $354 to $267 but kept an Overweight rating — a sizable PT reduction that tempers upside expectations while still signaling conviction in the name. Article Title
• Neutral Sentiment: Comparisons with peers (e.g., Qualys) highlight valuation and execution tradeoffs: ZS’s faster growth vs. some peers’ steadier margins and cheaper multiples — useful context for relative positioning. Article Title
• Negative Sentiment: Analyst note (Seeking Alpha summary) warns Cloudflare is taking share on RPO growth and net retention, and that Palo Alto’s M&A momentum intensifies competition — heightening investor fear of share loss and margin pressure. Article Title
• Negative Sentiment: Truist lowered expectations for Zscaler, adding to a string of cautious analyst notes that have pressured sentiment despite recent beat-and-raise results. Article Title

Zscaler Trading Down 5.5%

NASDAQ ZS opened at $159.75 on Monday. Zscaler, Inc. has a 1 year low of $159.66 and a 1 year high of $336.99. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market capitalization of $25.48 billion, a PE ratio of -614.40, a P/E/G ratio of 325.66 and a beta of 1.02. The company has a fifty day moving average of $206.73 and a 200 day moving average of $259.15.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11. The business had revenue of $788.11 million during the quarter, compared to analyst estimates of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company’s revenue was up 25.5% on a year-over-year basis. During the same quarter last year, the business posted $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. Research analysts forecast that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Adam Geller sold 2,060 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $475,489.20. Following the completion of the transaction, the insider directly owned 52,148 shares in the company, valued at $12,036,801.36. The trade was a 3.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Raj Judge sold 3,438 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the sale, the executive vice president directly owned 70,394 shares in the company, valued at $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,350 shares of company stock valued at $4,471,509 in the last three months. 17.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Needham & Company LLC cut their price objective on shares of Zscaler from $350.00 to $310.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Truist Financial dropped their target price on shares of Zscaler from $350.00 to $250.00 and set a “buy” rating on the stock in a research report on Tuesday, February 17th. Cantor Fitzgerald restated an “overweight” rating on shares of Zscaler in a research note on Monday, February 9th. Mizuho lowered their price objective on shares of Zscaler from $310.00 to $265.00 and set an “outperform” rating for the company in a research note on Tuesday, February 17th. Finally, Bank of America dropped their price objective on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $304.78.

About Zscaler

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.