California State Teachers Retirement System Raises Stock Position in Zscaler, Inc. $ZS

California State Teachers Retirement System grew its stake in shares of Zscaler, Inc. (NASDAQ:ZS) by 13,837.9% in the second quarter, Holdings Channel.com reports. The fund owned 19,388,787 shares of the company’s stock after purchasing an additional 19,249,679 shares during the period. California State Teachers Retirement System owned approximately 0.12% of Zscaler worth $2,736,727,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of ZS. Kentucky Retirement Systems Insurance Trust Fund grew its holdings in shares of Zscaler by 1.4% in the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after acquiring an additional 36 shares during the period. Parallel Advisors LLC raised its holdings in Zscaler by 10.9% during the third quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares during the last quarter. Smartleaf Asset Management LLC boosted its position in Zscaler by 7.5% during the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after purchasing an additional 45 shares in the last quarter. Larson Financial Group LLC boosted its position in Zscaler by 2.6% during the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock worth $611,000 after purchasing an additional 52 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its holdings in Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after purchasing an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Analyst Upgrades and Downgrades

ZS has been the subject of a number of research analyst reports. Canaccord Genuity Group restated a “buy” rating and issued a $210.00 price target on shares of Zscaler in a research report on Friday, September 4th. Wells Fargo & Company boosted their price objective on shares of Zscaler from $210.00 to $215.00 and gave the stock an “overweight” rating in a research report on Friday, September 4th. Truist Financial set a $210.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Zscaler in a report on Friday, September 4th. Finally, KeyCorp lifted their target price on shares of Zscaler from $185.00 to $210.00 and gave the stock an “overweight” rating in a research report on Friday, August 21st. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and an average target price of $216.65.

Zscaler Stock Performance

NASDAQ ZS opened at $163.48 on Friday. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The business has a fifty day moving average of $163.04 and a 200-day moving average of $150.25. The stock has a market cap of $26.66 billion, a price-to-earnings ratio of -419.18, a price-to-earnings-growth ratio of 21.48 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The business’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, analysts predict that Zscaler, Inc. will post 0.56 earnings per share for the current fiscal year.

Insider Activity

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the sale, the chief financial officer directly owned 41,901 shares of the company’s stock, valued at $5,204,942.22. This trade represents a 6.68% 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 Adam Geller sold 2,817 shares of Zscaler stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the sale, the insider owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,772 shares of company stock valued at $2,139,799 in the last 90 days. Company insiders own 17.20% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal fourth-quarter revenue of approximately $898.2 million, up 25% year over year, while annual recurring revenue rose 25% to $3.771 billion. The results highlight continued demand for its subscription-based security platform. Zscaler Reported Revenue and ARR Growth While Planning Workforce Reduction
• Positive Sentiment: Management said ARR reached roughly $3.8 billion with 25% growth, while demand for AI security is accelerating. That supports the investment case for Zscaler’s platform and its ability to benefit from rising enterprise AI adoption. Zscaler Q4 2026 Earnings Call Transcript
• Positive Sentiment: Zscaler launched Agentic SOC, which combines its zero-trust telemetry with specialized AI agents to detect, investigate, and respond to threats. Models from OpenAI and Anthropic are reportedly used to automate security operations, potentially creating new product and revenue opportunities. Zscaler Launches Agentic SOC to Contain AI-Driven Threats
• Neutral Sentiment: Zscaler gained alongside other cybersecurity and cloud companies after Cloudflare announced a security partnership with OpenAI. The move provided a broader AI-security read-through, but the partnership was Cloudflare’s rather than Zscaler’s. Cloudflare Surges on OpenAI Security Partnership
• Negative Sentiment: A Zacks analysis argued that slowing revenue and ARR growth, increased capital spending, and weaker cash-flow margins could limit Zscaler’s near-term performance despite its valuation. The company’s elevated growth expectations make execution especially important. Zscaler Stock Lags Industry Returns in Six Months
• Negative Sentiment: Reports that Zscaler is planning a workforce reduction add caution around operating priorities and suggest management is taking steps to control costs as growth moderates.

About Zscaler

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company’s offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.