MIG Capital LLC has significantly increased its investment in Zscaler, Inc. (NASDAQ: ZS) by acquiring an additional 5,467 shares during the second quarter of 2023. This purchase elevated MIG Capital’s total holdings to 9,964 shares, valued at approximately $3.1 million as reported in its most recent filing with the Securities and Exchange Commission (SEC).
In the context of broader market activity, several hedge funds have adjusted their positions in Zscaler recently. For instance, AE Wealth Management LLC established a new stake in Zscaler valued at around $377,000 during the first quarter. Avantax Advisory Services Inc. also expanded its holdings by 44.1%, acquiring an additional 1,602 shares for a total value of approximately $1.04 million. Other notable investments included TCW Group Inc., which invested $2.09 million, and Mackenzie Financial Corp., which increased its stake by 17.9%, bringing its total to 6,326 shares worth $1.26 million. Currently, institutional investors collectively hold about 46.45% of Zscaler’s stock.
Analyst Ratings and Market Performance
Recent activity among equity research analysts has reflected a positive outlook for Zscaler. JMP Securities reaffirmed a “market outperform” rating with a price target of $355.00. The Royal Bank of Canada revised its target from $350.00 to $366.00, maintaining an “outperform” rating. Macquarie initiated coverage with an “outperform” rating and a target price of $390.00. In contrast, Wall Street Zen downgraded Zscaler from a “buy” to a “hold” rating on October 18, 2023.
Overall, analysts have expressed confidence in Zscaler’s performance, with one analyst rating the stock as a Strong Buy, thirty-one giving it a Buy rating, eight assigning a Hold rating, and one a Sell rating. The consensus suggests a “Moderate Buy” rating, with an average target price set at $317.00.
On November 25, 2023, Zscaler reported strong fiscal results, posting earnings of $0.96 earnings per share (EPS), surpassing the consensus estimate of $0.85 by $0.11. The company also recorded revenue of $788.11 million for the quarter, exceeding expectations of $773.86 million. Despite a negative return on equity of -0.47% and a net margin of -1.55%, Zscaler’s revenue reflects a year-over-year growth of 25.5%.
Insider Transactions and Company Overview
In related news, Zscaler’s CEO, Jagtar Singh Chaudhry, sold 2,865 shares on September 16, 2023, at an average price of $280.70, totaling $804,205.50. Following this transaction, he retains ownership of 350,700 shares, valued at approximately $98.44 million. Additionally, Executive Vice President Raj Judge sold 4,524 shares on the same date for a total of $1.27 million. Over the past three months, insiders sold a total of 43,084 shares valued at approximately $12.45 million, with company insiders currently holding 18.10% of Zscaler’s stock.
Founded as a cloud security company, Zscaler offers solutions such as Zscaler Internet Access and Zscaler Private Access, aimed at securing access to both externally managed applications and internally hosted applications in data centers or clouds. As the market evolves, Zscaler continues to position itself as a key player in the cybersecurity field, reflecting its commitment to providing robust solutions for a growing digital landscape.
