Clare Market Investments LLC Acquires 13,164 Shares of Zscaler, Inc. $ZS

Clare Market Investments LLC grew its holdings in Zscaler, Inc. (NASDAQ:ZS) by 61.6% in the third quarter, HoldingsChannel.com reports. The institutional investor owned 34,528 shares of the company’s stock after buying an additional 13,164 shares during the quarter. Zscaler comprises approximately 2.1% of Clare Market Investments LLC’s portfolio, making the stock its 11th largest holding. Clare Market Investments LLC’s holdings in Zscaler were worth $10,347,000 as of its most recent SEC filing.

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

Zscaler Stock Performance

Shares of ZS stock opened at $146.99 on Friday. The stock has a market cap of $23.44 billion, a PE ratio of -349.98, a price-to-earnings-growth ratio of 341.17 and a beta of 1.02. The stock has a 50-day moving average of $198.92 and a 200-day moving average of $255.20. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler, Inc. has a one year low of $140.56 and a one year high of $336.99.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. During the same quarter last year, the firm earned $0.78 EPS. Zscaler’s quarterly revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, sell-side analysts expect that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on ZS shares. Piper Sandler lowered their target price on Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a research note on Friday. Mizuho lowered their price objective on Zscaler from $265.00 to $250.00 and set an “outperform” rating for the company in a research report on Friday. Oppenheimer cut their target price on shares of Zscaler from $345.00 to $280.00 and set an “outperform” rating on the stock in a research report on Friday. Berenberg Bank reduced their target price on shares of Zscaler from $390.00 to $320.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Needham & Company LLC dropped their price target on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $274.37.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

Insider Buying and Selling

In related news, EVP Raj Judge sold 3,438 shares of the company’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 $793,559.16. Following the completion of the sale, the executive vice president owned 70,394 shares in the company, valued at $16,248,343.08. This represents a 4.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Adam Geller sold 2,060 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $475,489.20. Following the transaction, the insider owned 52,148 shares in the company, valued at approximately $12,036,801.36. This represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,350 shares of company stock worth $4,471,509 over the last ninety days. Insiders own 17.20% of the company’s stock.

Zscaler Company Profile

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.