Kornitzer Capital Management Inc. KS Grows Stake in Zscaler, Inc. $ZS

Kornitzer Capital Management Inc. KS raised its stake in shares of Zscaler, Inc. (NASDAQ:ZS) by 15.1% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 22,100 shares of the company’s stock after purchasing an additional 2,900 shares during the period. Kornitzer Capital Management Inc. KS’s holdings in Zscaler were worth $6,622,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of ZS. Tradewinds Capital Management LLC lifted its position in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after buying an additional 51 shares during the last quarter. Root Financial Partners LLC purchased a new position in shares of Zscaler during the 3rd quarter worth about $26,000. McIlrath & Eck LLC bought a new position in Zscaler during the 3rd quarter valued at about $29,000. Quaker Wealth Management LLC lifted its stake in Zscaler by 200.0% in the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company’s stock worth $30,000 after purchasing an additional 194 shares during the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in shares of Zscaler during the second quarter valued at approximately $41,000. 46.45% of the stock is owned by institutional investors.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler launched the Zscaler AI Security Suite — a bundled set of capabilities for AI asset inventory, secure access, and runtime protection; integrations with OpenAI, Microsoft, AWS and alignment with NIST/EU AI rules position ZS as a go‑to vendor for enterprises accelerating AI. Zscaler Unveils New Innovations to Secure Enterprise AI Adoption
• Positive Sentiment: Zscaler’s ThreatLabz 2026 AI Security Report found rapid AI adoption and widespread vulnerabilities (median time to first critical failure ~16 minutes), which creates a clear market need for Zero Trust AI controls — a potential demand catalyst for ZS security products. Zscaler 2026 AI Threat Report: 91% Year-over-Year Surge in AI Activity Creates Growing Oversight Gap for Global Enterprises
• Neutral Sentiment: Multiple outlets flagged ZS as a top mover today and highlighted the new AI announcements as the proximate cause of buying interest. Media coverage is reinforcing the product narrative to traders. Why Zscaler (ZS) Stock Is Up Today
• Neutral Sentiment: Analyst attention remains supportive: recent Zacks/other coverage and numerous buy/overweight ratings and price targets well above current levels provide a favorable analyst backdrop; earlier quarterly results showed strong revenue growth and an EPS beat, which underpins confidence. Zscaler (ZS) Outperforms Broader Market: What You Need to Know
• Negative Sentiment: Quiver/coverage flags heavy insider selling activity in recent months and highlights the report’s disclosure/forward‑looking caveats — potential short‑term overhang if investors view insider sales or integration risks negatively. Zscaler Reports Critical AI Security Vulnerabilities Amid Rapid Adoption Growth

Insiders Place Their Bets

In other news, Director James A. Beer sold 653 shares of Zscaler stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $226.72, for a total value of $148,048.16. Following the transaction, the director owned 3,485 shares of the company’s stock, valued at $790,119.20. The trade was a 15.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Raj Judge sold 3,438 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the transaction, the executive vice president owned 70,394 shares of the company’s stock, valued at approximately $16,248,343.08. This trade represents a 4.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. Insiders own 17.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on ZS shares. Sanford C. Bernstein cut Zscaler from an “outperform” rating to a “hold” rating in a report on Monday, December 1st. Bank of America cut their price target on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Stifel Nicolaus decreased their price objective on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. Rosenblatt Securities reissued a “buy” rating and issued a $365.00 price objective on shares of Zscaler in a research report on Wednesday, November 26th. Finally, Royal Bank Of Canada reduced their target price on shares of Zscaler from $366.00 to $290.00 and set an “outperform” rating on the stock in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $317.63.

Zscaler Trading Up 2.4%

Shares of NASDAQ:ZS opened at $219.67 on Wednesday. The company has a market capitalization of $35.03 billion, a PE ratio of -844.85, a P/E/G ratio of 3,526.27 and a beta of 1.02. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. Zscaler, Inc. has a 12-month low of $164.78 and a 12-month high of $336.99. The business’s fifty day simple moving average is $233.80 and its 200-day simple moving average is $272.67.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The firm had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. During the same period in the prior year, the business posted $0.77 EPS. The firm’s quarterly revenue was up 25.5% on a year-over-year basis. 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 research analysts predict that Zscaler, Inc. will post -0.1 earnings per share for the current fiscal year.

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.