T. Rowe Price Investment Management Inc. Sells 329,402 Shares of Zscaler, Inc. $ZS

T. Rowe Price Investment Management Inc. trimmed its holdings in shares of Zscaler, Inc. (NASDAQ:ZS) by 14.6% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,928,098 shares of the company’s stock after selling 329,402 shares during the period. T. Rowe Price Investment Management Inc. owned about 1.21% of Zscaler worth $433,668,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Goldstream Capital Management Ltd lifted its stake in shares of Zscaler by 0.3% in the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after acquiring an additional 34 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund grew its position in Zscaler by 1.4% during 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 last quarter. Advisor OS LLC increased its stake in Zscaler by 4.6% in the 3rd quarter. Advisor OS LLC now owns 879 shares of the company’s stock worth $263,000 after purchasing an additional 39 shares during the period. Parallel Advisors LLC increased its stake in Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares during the period. Finally, Smartleaf Asset Management LLC lifted its position in Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler unveiled new zero-trust tools designed to monitor and secure AI agent workflows, reinforcing its position in a fast-growing cybersecurity niche and supporting the company’s long-term growth story. Zscaler introduces new zero trust tools to monitor and secure AI agent workflows
• Positive Sentiment: Commentary around AI agents and cybersecurity framed Zscaler as a potential winner from the shift toward AI-powered security spending, which may help sentiment on the stock. AI agents are changing cybersecurity forever. Zscaler is positioning itself to win big.
• Neutral Sentiment: Several insider sales were disclosed, including by the CEO, CFO, and a director, but the filings say the trades were tied to pre-arranged plans and tax withholding related to equity vesting, which limits the signal of bearish insider sentiment.
• Neutral Sentiment: Analyst commentary remains mixed, with some media asking whether it is time to cash out, while other reports still point to upside potential; this helps explain why shares may be volatile rather than moving on a single clear catalyst. Is it time to cash out of Zscaler?
• Negative Sentiment: Two shareholder-law firms, Pomerantz and Schall, announced investigations into possible securities-law issues at Zscaler, adding legal overhang and investor caution even though no wrongdoing has been proven.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company’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 $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 1,940 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $245,274.20. Following the completion of the sale, the insider directly owned 45,131 shares of the company’s stock, valued at approximately $5,705,912.33. This trade represents a 4.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 9,827 shares of company stock valued at $1,242,263. Insiders own 17.20% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently weighed in on ZS. Wedbush reissued an “outperform” rating and set a $220.00 price objective on shares of Zscaler in a research note on Wednesday, June 10th. Oppenheimer decreased their target price on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 10th. Cantor Fitzgerald reiterated an “overweight” rating and set a $225.00 price target on shares of Zscaler in a report on Wednesday, June 10th. Berenberg Bank set a $200.00 price target on shares of Zscaler in a research report on Thursday, May 28th. Finally, HC Wainwright raised shares of Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Thirty-four investment 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. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $214.33.

Zscaler Price Performance

ZS opened at $124.85 on Friday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The stock has a market capitalization of $20.19 billion, a PE ratio of -260.10, a price-to-earnings-growth ratio of 77.77 and a beta of 0.97. The stock’s 50 day moving average price is $141.51 and its 200-day moving average price is $173.33.

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

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.