Dimensional Fund Advisors LP Purchases 3,719 Shares of Zscaler, Inc. $ZS

Dimensional Fund Advisors LP lifted its position in shares of Zscaler, Inc. (NASDAQ:ZS) by 1.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 243,763 shares of the company’s stock after purchasing an additional 3,719 shares during the period. Dimensional Fund Advisors LP’s holdings in Zscaler were worth $34,192,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of ZS. Binnacle Investments Inc acquired a new position in Zscaler in the third quarter valued at approximately $25,000. AlphaCentric Advisors LLC bought a new stake in Zscaler during the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler in the 4th quarter valued at $30,000. Mcguire Capital Advisors Inc. bought a new position in shares of Zscaler during the fourth quarter valued at about $32,000. Finally, Family CFO Inc bought a new position in shares of Zscaler during the 4th quarter worth approximately $34,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Gartner recognition reinforces Zscaler’s competitive position. Zscaler was named a Leader in both Gartner’s 2026 Magic Quadrant for SASE Platforms and its Security Service Edge report. It has now been recognized as an SSE Leader for five consecutive years, which may support customer confidence and help the company win enterprise contracts. Zscaler Recognized as a Leader in Both Gartner Reports
• Positive Sentiment: Large-deal activity is accelerating. Zscaler reportedly is seeing record-sized deals, driven by Zero Trust adoption, demand for AI protection, platform consolidation and increasing Z-Flex contract values. Larger, broader contracts could improve revenue visibility and customer expansion prospects. Zscaler’s Large Deal Activity Surges
• Positive Sentiment: AI initiatives are adding to the growth narrative. Zscaler introduced its ZAgent Framework for agentic AI tools within its SASE platform, while joining the CSAI Foundation as a Vanguard member. These developments position the company to benefit from rising demand for secure enterprise AI adoption. Zscaler Gartner and ZAgent Framework Report
• Positive Sentiment: Analysts and media are highlighting potential undervaluation. Recent commentary suggests ZS could be undervalued following a special investor call, helping renew interest ahead of the company’s next earnings release. Zscaler Could Be Undervalued
• Neutral Sentiment: Broader technology-sector momentum is also contributing. Zscaler was included among several soaring cloud, cybersecurity and AI stocks, indicating that part of the move reflects wider investor enthusiasm for growth technology rather than company-specific news alone. Technology Stocks Are Soaring
• Negative Sentiment: AI could test Zscaler’s competitive moat. One analysis cautions that rapidly evolving AI capabilities may challenge the durability of Zscaler’s differentiation, creating a longer-term execution and competitive risk despite the current positive news flow. AI Is Testing Zscaler’s Moat

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on ZS shares. Robert W. Baird decreased their price target on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating for the company in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Rosenblatt Securities restated a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. FBN Securities restated an “outperform” rating and issued a $175.00 price objective on shares of Zscaler in a research report on Wednesday, May 27th. Finally, TD Cowen restated a “buy” rating on shares of Zscaler in a research report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $214.21.

Insider Buying and Selling at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the sale, the chief financial officer directly owned 41,901 shares in the company, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% 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 16,269 shares of company stock valued at $2,052,589 in the last quarter. 17.20% of the stock is owned by insiders.

Zscaler Stock Performance

Zscaler stock opened at $163.22 on Wednesday. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market cap of $26.39 billion, a P/E ratio of -340.03, a P/E/G ratio of 55.59 and a beta of 0.94. Zscaler, Inc. has a 1-year low of $114.63 and a 1-year high of $336.99. The firm has a 50-day moving average of $139.56 and a 200-day moving average of $153.09.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts expect that Zscaler, Inc. will post 0.12 EPS for the current 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.