Connor Clark & Lunn Investment Management Ltd. Acquires Shares of 724,557 Zscaler, Inc. $ZS

Connor Clark & Lunn Investment Management Ltd. bought a new position in Zscaler, Inc. (NASDAQ:ZS) during the 2nd quarter, Holdings Channel reports. The institutional investor bought 724,557 shares of the company’s stock, valued at approximately $102,271,000.

A number of other institutional investors have also recently modified their holdings of ZS. Kentucky Retirement Systems Insurance Trust Fund increased its holdings in shares of Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after acquiring an additional 36 shares in the last quarter. Parallel Advisors LLC boosted its stake in Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares in the last quarter. Smartleaf Asset Management LLC grew its position in Zscaler by 7.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares during the last quarter. Larson Financial Group LLC grew its position in Zscaler by 2.6% during the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after purchasing an additional 52 shares during the last quarter. Finally, Crossmark Global Holdings Inc. increased its stake in Zscaler by 6.1% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after purchasing an additional 56 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $181.74 on Monday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The firm has a market cap of $29.39 billion, a price-to-earnings ratio of -378.62, a price-to-earnings-growth ratio of 106.97 and a beta of 0.94. The business has a 50-day simple moving average of $151.10 and a two-hundred day simple moving average of $150.19. Zscaler, Inc. has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the firm posted $0.84 EPS. The business’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, analysts expect that Zscaler, Inc. will post 0.13 earnings per share for the current year.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Singh Chaudhry sold 2,878 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 16,269 shares of company stock worth $2,052,589 in the last three months. 17.20% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on ZS. Citigroup reaffirmed a “market outperform” rating on shares of Zscaler in a report on Wednesday, May 27th. Robert W. Baird cut their price target on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Cantor Fitzgerald reissued an “overweight” rating and set a $225.00 price target on shares of Zscaler in a research report on Wednesday, August 19th. Royal Bank Of Canada restated an “outperform” rating and issued a $200.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Finally, Mizuho upped their price objective on Zscaler from $185.00 to $210.00 and gave the company an “outperform” rating in a research report on Wednesday, August 19th. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Zscaler currently has a consensus rating of “Moderate Buy” and an average target price of $215.36.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyBanc raised its price target to $210 from a lower prior target, citing what it views as a valuation discount and potential for the cybersecurity company to regain investor confidence. KeyBanc upgrades Zscaler price target
• Positive Sentiment: Additional bullish analyst actions supported the stock. Mizuho lifted its price target to $210, Stifel Nicolaus raised its target to $200, and Cantor Fitzgerald assigned Zscaler an “Overweight” rating. The actions suggest Wall Street sees upside despite the stock’s sharp decline from its 52-week high. Mizuho raises Zscaler price target Stifel raises Zscaler price target Cantor Fitzgerald rates Zscaler Overweight
• Positive Sentiment: Rising AI-driven cyber threats reinforce demand for Zscaler’s platform. NTT DATA CEO Abhijit Dubey said frontier AI is making attacks more sophisticated, expanding the attack surface, and accelerating attacks to machine speed—an industry trend that could increase demand for cloud-based zero-trust security. AI and cybersecurity threats
• Positive Sentiment: Zscaler’s expanded Carahsoft partnership targets U.S. small and midsize businesses with standardized bundles, simpler pricing, and broader partner enablement. The initiative could diversify Zscaler’s customer base and create an additional growth channel beyond large enterprises. Zscaler and Carahsoft SMB partnership
• Negative Sentiment: AI-lab IPO speculation remains a risk to sentiment. Reports that Anthropic may pursue a massive public offering renewed concerns that investors could redirect capital from enterprise software stocks toward AI companies, contributing to recent pressure on Zscaler. Zscaler and AI IPO concerns

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.