Prescott Group Capital Management L.L.C. Reduces Holdings in Zscaler, Inc. $ZS

Prescott Group Capital Management L.L.C. lowered its position in shares of Zscaler, Inc. (NASDAQ:ZS) by 50.0% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,500 shares of the company’s stock after selling 3,500 shares during the period. Prescott Group Capital Management L.L.C.’s holdings in Zscaler were worth $787,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in ZS. Groupama Asset Managment raised 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 purchasing an additional 4,743,787 shares during the period. AQR Capital Management LLC raised its stake in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after purchasing an additional 741,756 shares during the period. Vanguard Group Inc. raised its stake in shares of Zscaler by 6.1% during the third quarter. Vanguard Group Inc. now owns 11,367,903 shares of the company’s stock valued at $3,406,506,000 after purchasing an additional 652,771 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of Zscaler during the third quarter valued at approximately $109,440,000. Finally, Danica Pension Livsforsikringsaktieselskab bought a new stake in shares of Zscaler in the third quarter worth $88,387,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Sanford C. Bernstein assumed coverage on shares of Zscaler in a research note on Monday. They issued an “outperform” rating for the company. Stephens dropped their price target on shares of Zscaler from $340.00 to $225.00 and set an “overweight” rating for the company in a research note on Monday, February 23rd. JPMorgan Chase & Co. dropped their price target on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Canaccord Genuity Group dropped their price target on shares of Zscaler from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Finally, Mizuho dropped their price target on shares of Zscaler from $265.00 to $250.00 and set an “outperform” rating for the company in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $261.26.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: B.Riley upgraded Zscaler from Neutral to Buy, which helped fuel a strong rally as investors responded to the more constructive analyst view. Why Is Zscaler (ZS) Stock Soaring Today
• Positive Sentiment: Zscaler reported stronger-than-expected quarterly results, raised full-year guidance, and highlighted growing demand tied to AI security and zero-trust adoption, supporting the stock’s recent rebound. Why Zscaler (ZS) Is Up 19.9% After Strong Results And New AI-Focused Zero-Trust Push
• Positive Sentiment: The company launched Project AI-Guardian with major global system integrators, expanding its AI security push and giving investors another catalyst for enterprise adoption. Zscaler Partners with Global System Integrators to Launch Project AI-Guardian to Help Accelerate Enterprise AI Adoption
• Positive Sentiment: UBS said Zscaler has a positive setup into upcoming earnings, while Oppenheimer said results are likely to be balanced to slightly above plan, suggesting expectations are manageable. Zscaler Setup Looks Positive Into Upcoming Earnings, UBS Says
• Neutral Sentiment: IGEL and Zscaler released healthcare security blueprints, a supportive partnership announcement that adds to the company’s broader product and ecosystem momentum. IGEL and Zscaler Release Healthcare Security Blueprints for Distributed Care Delivery
• Neutral Sentiment: Some commentary noted mixed signals from estimate revisions and relative performance versus peers, which could limit upside if earnings do not surprise meaningfully. Zscaler (ZS) Soars 8.5%: Is Further Upside Left in the Stock?

Zscaler Stock Performance

Zscaler stock opened at $174.45 on Thursday. The company has a market cap of $28.05 billion, a PE ratio of -415.36 and a beta of 0.96. The company has a fifty day moving average price of $143.66 and a two-hundred day moving average price of $196.87. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. Zscaler, Inc. has a 12 month low of $114.63 and a 12 month high of $336.99.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The firm had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm’s revenue was up 25.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Research analysts expect that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insider Transactions at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 1,941 shares of Zscaler stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $303,941.19. Following the completion of the transaction, the chief executive officer owned 345,916 shares of the company’s stock, valued at $54,166,986.44. The trade was a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the transaction, the insider directly owned 46,949 shares of the company’s stock, valued at approximately $7,208,079.97. This represents a 4.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,130 shares of company stock valued at $1,892,487 over the last quarter. Insiders own 17.20% of the company’s stock.

Zscaler 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.