Allegiance Financial Group Advisory Services LLC Acquires New Shares in Zscaler, Inc. $ZS

Allegiance Financial Group Advisory Services LLC bought a new position in Zscaler, Inc. (NASDAQ:ZS) in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,635 shares of the company’s stock, valued at approximately $525,000.

Other large investors have also bought and sold shares of the company. Kestra Advisory Services LLC raised its stake in shares of Zscaler by 11.4% in the third quarter. Kestra Advisory Services LLC now owns 25,224 shares of the company’s stock valued at $5,030,000 after acquiring an additional 2,586 shares during the period. Capstone Wealth Management LLC acquired a new stake in Zscaler in the third quarter worth about $287,000. Kestra Private Wealth Services LLC increased its holdings in Zscaler by 84.2% in the third quarter. Kestra Private Wealth Services LLC now owns 11,820 shares of the company’s stock worth $2,357,000 after buying an additional 5,403 shares during the last quarter. Chicago Partners Investment Group LLC raised its stake in Zscaler by 375.4% during the third quarter. Chicago Partners Investment Group LLC now owns 13,706 shares of the company’s stock worth $3,497,000 after acquiring an additional 10,823 shares in the last quarter. Finally, Compass Financial Management LLC acquired a new position in shares of Zscaler during the 3rd quarter worth approximately $206,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler’s zero-trust security model could benefit from organizations modernizing remote access and protecting operational technology. Recent coverage described a customer’s VPN transition and discussed why OT environments need broader zero-trust protections; these are industry-use-case signals, not disclosed material deals. Zscaler Sales Engineer Interview Zscaler’s Nathan Howe on OT Zero Trust
• Neutral Sentiment: A comparison with Palo Alto Networks highlighted Zscaler’s cloud-native zero-trust presence among Fortune 500 companies, while noting Palo Alto’s push to bundle security services into a broader platform. This underscores Zscaler’s established position as well as competitive pressure. Palo Alto Networks vs. Zscaler
• Neutral Sentiment: Zscaler scheduled its fiscal 2027 first-quarter results and investor call for December 2, giving investors the next key opportunity to assess growth and outlook; the announcement itself provided no new financial results. Zscaler earnings call announcement
• Negative Sentiment: Recent selling has weighed on ZS alongside declines in other cybersecurity and software names. Coverage reported a 9.16% fall in the latest session and a 14% weekly decline, suggesting broad sector pressure is a near-term headwind. One analysis cited an average analyst price target of $235, but that is an estimate, not a near-term catalyst. Zscaler’s recent decline and analyst targets Why Zscaler dipped

Analyst Ratings Changes

ZS has been the topic of a number of research analyst reports. Scotiabank increased their target price on Zscaler from $240.00 to $255.00 and gave the company a “sector outperform” rating in a research note on Wednesday, October 7th. Barclays boosted their price objective on shares of Zscaler from $220.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 7th. Needham & Company LLC lifted their target price on Zscaler from $215.00 to $255.00 and gave the stock a “buy” rating in a research report on Wednesday, October 7th. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research report on Friday, October 2nd. Finally, Stifel Nicolaus upped their target price on Zscaler from $200.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday, October 7th. Thirty-six investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $236.65.

Zscaler Stock Down 3.1%

Shares of NASDAQ ZS opened at $197.66 on Friday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The firm has a 50 day moving average price of $208.01 and a 200 day moving average price of $167.67. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $333.90. The stock has a market cap of $32.23 billion, a P/E ratio of -506.82, a P/E/G ratio of 21.28 and a beta of 0.82.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler’s revenue was up 24.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Analysts expect that Zscaler, Inc. will post 0.70 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Kevin Rubin sold 514 shares of the firm’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $259.15, for a total value of $133,203.10. Following the completion of the sale, the chief financial officer directly owned 62,113 shares of the company’s stock, valued at $16,096,583.95. This trade represents a 0.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 1,041 shares of Zscaler stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $238.00, for a total transaction of $247,758.00. Following the completion of the sale, the insider owned 58,167 shares of the company’s stock, valued at approximately $13,843,746. This trade represents a 1.76% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 55,105 shares of company stock valued at $11,563,836 over the last quarter. Insiders own 17.20% of the company’s stock.

Zscaler Company Profile

Zscaler, Inc is a cloud security company that provides services designed to help organizations protect users, applications, and data. Its platform, the Zscaler Zero Trust Exchange, connects users and devices to applications while applying security controls, rather than relying on traditional network boundaries.

The company’s offerings include Zscaler Internet Access for securing internet and software-as-a-service traffic, and Zscaler Private Access for providing secure access to private applications.