Westport Asset Management Inc. Buys New Position in Zscaler, Inc. $ZS

Westport Asset Management Inc. acquired a new stake in Zscaler, Inc. (NASDAQ:ZS) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 7,500 shares of the company’s stock, valued at approximately $1,059,000.

Several other large investors have also recently added to or reduced their stakes in ZS. Binnacle Investments Inc purchased a new position in shares of Zscaler during the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler during the 4th quarter valued at $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Zscaler in the fourth quarter worth about $30,000. Mcguire Capital Advisors Inc. purchased a new position in Zscaler in the 4th quarter worth approximately $32,000. Finally, Western Wealth Management LLC purchased a new position in shares of Zscaler in the first quarter valued at $33,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Multiple analysts raised their targets. Mizuho lifted its price target from $185 to $210 and upgraded Zscaler to Outperform. Stifel raised its target from $175 to $200 and assigned a Buy rating, while Cantor Fitzgerald reaffirmed its Overweight rating with a $225 target. These actions suggest analysts see meaningful upside from current levels. Benzinga analyst actions StreetInsider Cantor Fitzgerald commentary
• Positive Sentiment: Expanded Carahsoft partnership could broaden Zscaler’s customer reach. The companies are extending distribution of Zscaler’s Zero Trust Exchange to U.S. small and mid-sized businesses and the mid-market, potentially increasing channel access and future revenue opportunities. Zscaler and Carahsoft partnership announcement
• Positive Sentiment: Oppenheimer expects a modest fiscal fourth-quarter upside. The view supports expectations that Zscaler may slightly exceed quarterly results, though investors are also focused on the company’s forward outlook. Oppenheimer fiscal fourth-quarter outlook
• Neutral Sentiment: Analyst commentary remains broadly bullish, with Zscaler’s average brokerage recommendation equivalent to a Buy. However, the concentration of optimistic ratings may limit the impact of additional upgrades if expectations are already reflected in the stock. Zacks analyst recommendation analysis
• Negative Sentiment: Some analysis favors Okta over Zscaler because of Okta’s steadier growth, lower valuation and cross-selling opportunities. Zscaler’s high valuation and losses leave the stock more sensitive to any slowdown or disappointing guidance. Zscaler versus Okta analysis

Insider Activity at Zscaler

In related news, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 of the company’s stock, 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 16,269 shares of company stock valued at $2,052,589 over the last ninety days. 17.20% of the stock is owned by company insiders.

Zscaler Price Performance

NASDAQ ZS opened at $184.60 on Thursday. 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 company has a market cap of $29.85 billion, a PE ratio of -384.58, a PEG ratio of 66.84 and a beta of 0.94. Zscaler, Inc. has a 1 year low of $114.63 and a 1 year high of $336.99. The stock’s 50-day moving average price is $149.08 and its two-hundred day moving average price is $150.50.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The firm 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 revenue was up 25.4% on a year-over-year basis. During the same quarter last year, the business posted $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, analysts predict that Zscaler, Inc. will post 0.12 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ZS. Stephens reissued an “overweight” rating and set a $200.00 price target on shares of Zscaler in a research report on Friday, June 12th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $179.00 target price on shares of Zscaler in a report on Wednesday, May 27th. HC Wainwright raised shares of Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Rosenblatt Securities restated a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Finally, Truist Financial set a $210.00 price target on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $214.72.

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.