Bank of New York Mellon Corp Decreases Stake in Zscaler, Inc. $ZS

Bank of New York Mellon Corp cut its holdings in Zscaler, Inc. (NASDAQ:ZS) by 8.9% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 452,918 shares of the company’s stock after selling 44,074 shares during the period. Bank of New York Mellon Corp owned about 0.29% of Zscaler worth $135,721,000 at the end of the most recent quarter.

Other hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of Zscaler by 8.3% during the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock valued at $3,363,909,000 after purchasing an additional 824,626 shares during the last quarter. Geode Capital Management LLC boosted its stake in Zscaler by 6.0% in the second quarter. Geode Capital Management LLC now owns 1,866,329 shares of the company’s stock valued at $584,160,000 after acquiring an additional 105,318 shares during the last quarter. Federated Hermes Inc. grew its position in shares of Zscaler by 9.4% during the 3rd quarter. Federated Hermes Inc. now owns 1,281,671 shares of the company’s stock valued at $384,066,000 after acquiring an additional 109,688 shares during the period. AQR Capital Management LLC increased its stake in shares of Zscaler by 0.7% during the 2nd quarter. AQR Capital Management LLC now owns 1,199,815 shares of the company’s stock worth $371,823,000 after purchasing an additional 7,885 shares during the last quarter. Finally, Legal & General Group Plc lifted its stake in Zscaler by 2.0% in the second quarter. Legal & General Group Plc now owns 607,899 shares of the company’s stock valued at $190,844,000 after purchasing an additional 11,676 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have recently commented on ZS shares. Scotiabank dropped their price target on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, November 26th. Sanford C. Bernstein lowered shares of Zscaler from an “outperform” rating to a “hold” rating in a research report on Monday, December 1st. Citigroup lowered their price target on shares of Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a research report on Tuesday, January 13th. Mizuho upgraded shares of Zscaler from a “neutral” rating to an “outperform” rating and set a $310.00 price objective for the company in a research note on Tuesday, December 16th. Finally, Wall Street Zen cut shares of Zscaler from a “buy” rating to a “hold” rating in a report on Saturday, October 18th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $317.63.

Zscaler Stock Performance

NASDAQ:ZS opened at $200.01 on Friday. The stock has a market cap of $31.90 billion, a P/E ratio of -769.24, a PEG ratio of 3,297.49 and a beta of 1.02. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. The business’s 50-day moving average price is $229.16 and its two-hundred day moving average price is $271.00. Zscaler, Inc. has a twelve month low of $164.78 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. During the same period in the prior year, the business earned $0.77 earnings per share. Zscaler’s revenue for the quarter was up 25.5% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, equities analysts predict that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Activity at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the transaction, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director James A. Beer sold 653 shares of Zscaler stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the sale, the director directly owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,350 shares of company stock worth $4,471,509 in the last three months. 17.20% of the stock is owned by insiders.

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.