Nicholas Investment Partners LP Sells 6,704 Shares of Zscaler, Inc. $ZS

Nicholas Investment Partners LP reduced its stake in Zscaler, Inc. (NASDAQ:ZS) by 55.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,387 shares of the company’s stock after selling 6,704 shares during the quarter. Nicholas Investment Partners LP’s holdings in Zscaler were worth $1,212,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in ZS. Integrated Wealth Concepts LLC raised its holdings in Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after acquiring an additional 239 shares during the last quarter. NewEdge Advisors LLC raised its holdings in Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after acquiring an additional 370 shares during the last quarter. Empowered Funds LLC raised its holdings in Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Zscaler in the 2nd quarter worth approximately $252,000. Finally, Jump Financial LLC purchased a new position in Zscaler in the 2nd quarter worth approximately $3,019,000. 46.45% of the stock is owned by institutional investors.

Zscaler Price Performance

Shares of ZS opened at $129.52 on Friday. The firm has a market cap of $20.94 billion, a PE ratio of -269.83, a P/E/G ratio of 80.98 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a fifty day simple moving average of $142.55 and a two-hundred day simple moving average of $177.84. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company’s quarterly revenue was up 25.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.84 EPS. 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 anticipate that Zscaler, Inc. will post 0.11 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on ZS shares. Wolfe Research restated an “outperform” rating and issued a $150.00 price objective on shares of Zscaler in a report on Thursday. Barclays decreased their price objective on shares of Zscaler from $180.00 to $170.00 and set an “overweight” rating for the company in a report on Wednesday, May 27th. Piper Sandler decreased their price objective on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a report on Wednesday, May 27th. HC Wainwright upgraded shares of Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Finally, KeyCorp boosted their price objective on shares of Zscaler from $160.00 to $190.00 and gave the stock an “overweight” rating in a report on Monday, May 18th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $214.33.

Insider Buying and Selling at Zscaler

In other news, insider Adam Geller sold 2,094 shares of the company’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider directly owned 46,949 shares in the company, valued at $7,208,079.97. This represents a 4.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares of the company’s stock, valued at $7,278,146.61. This trade represents a 3.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by corporate insiders.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Stephens reaffirmed Overweight on Zscaler and set a $200 price target, implying substantial upside from current levels.
• Positive Sentiment: Canaccord Genuity also reiterated Buy and raised its target to $210, signaling continued analyst confidence in Zscaler’s growth outlook.
• Positive Sentiment: Zscaler unveiled new AI-driven security features for its Zero Trust SASE platform, including the ZAgent Framework and other offerings aimed at securing AI agents, endpoints, partners, unmanaged devices, and Kubernetes environments. Zscaler Bets On AI Agent Security And Identity To Revive Growth
• Positive Sentiment: The company also expanded its Zero Trust SASE solution for a world of AI and distributed users, reinforcing its positioning in a fast-growing security niche. Zscaler expands Zero Trust SASE solution for ‘a world of AI with distributed users’
• Neutral Sentiment: Recent media coverage and Zacks commentary show Zscaler remains one of the more closely watched software names, with investors focused on whether AI-related demand can offset slowing growth expectations.
• Neutral Sentiment: Management commentary at recent events emphasized zero trust as a foundation for deploying AI agents, which supports the long-term thesis but does not appear to be an immediate catalyst.
• Negative Sentiment: Zacks noted that Zscaler is trading near a 52-week low after FY27 guidance pointed to slower growth, even though AI security bookings and platform gains may help support the stock.
• Negative Sentiment: The Schall Law Firm announced a fraud investigation into possible false or misleading statements, adding legal and reputational overhang for investors.

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.