Motley Fool Asset Management LLC Increases Stock Position in Zscaler, Inc. $ZS

Motley Fool Asset Management LLC raised its holdings in Zscaler, Inc. (NASDAQ:ZS) by 36.7% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 14,933 shares of the company’s stock after purchasing an additional 4,013 shares during the period. Motley Fool Asset Management LLC’s holdings in Zscaler were worth $3,359,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of ZS. Groupama Asset Managment lifted its stake in shares of Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after buying an additional 4,743,787 shares during the period. AQR Capital Management LLC increased its position in Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after purchasing an additional 741,756 shares during the last quarter. Vanguard Group Inc. increased its position in Zscaler by 6.1% during the third quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company’s stock worth $3,406,506,000 after purchasing an additional 652,771 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in Zscaler during the third quarter worth approximately $109,440,000. Finally, Norges Bank acquired a new stake in shares of Zscaler in the fourth quarter worth $79,762,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler Stock Down 0.9%

ZS stock opened at $124.73 on Thursday. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market capitalization of $20.17 billion, a price-to-earnings ratio of -259.85, a price-to-earnings-growth ratio of 78.68 and a beta of 0.97. The firm’s 50-day moving average is $142.97 and its two-hundred day moving average is $179.23. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

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

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on ZS shares. The Goldman Sachs Group reissued a “neutral” rating and issued a $179.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Canaccord Genuity Group lowered their price target on shares of Zscaler from $275.00 to $210.00 and set a “buy” 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. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $200.00 price target on shares of Zscaler in a research report on Wednesday. Thirty-three research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $216.03.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Wedbush, RBC, Guggenheim, Rosenblatt, and Needham all reaffirmed bullish ratings on Zscaler, with price targets ranging from $180 to $220, signaling analysts still see substantial upside from current levels.
• Positive Sentiment: Wedbush said Zscaler continues to see solid demand for its cloud and AI products, which supports the view that recent weakness in sentiment may not reflect underlying business momentum. Article: Zscaler Still Seeing Solid Demand for Cloud, AI Products, Wedbush Says
• Positive Sentiment: Zscaler used its Zenith Live 2026 event to unveil new AI security products, including Zscaler AI Broker, Endpoint AI Security, and expanded Zero Trust SASE capabilities, reinforcing its positioning as an AI-security leader.
• Positive Sentiment: The company also expanded Project AI-Guardian with partners such as AWS, Google Cloud, OpenAI, Databricks, and others, which could broaden adoption and deepen its ecosystem advantages in enterprise AI security.
• Neutral Sentiment: Zscaler presented at Zenith Live 2026, but the transcript itself does not appear to add a major new financial surprise beyond the product and strategy updates. Article: Zscaler, Inc. (ZS) Presents at Zenith-live-2026 Transcript
• Negative Sentiment: Several law firms announced securities investigations and class-action reminders related to Zscaler, creating a legal overhang that could pressure sentiment and keep volatility elevated.
• Negative Sentiment: Recent headlines also note insider selling and mixed institutional ownership trends, which may add caution even as the company’s product story remains strong.

Insider Buying and Selling

In other news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the transaction, the insider owned 46,949 shares of the company’s stock, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the transaction, the insider directly owned 72,390 shares in the company, valued at $11,335,550.10. This represents a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by insiders.

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.