ING Groep NV has significantly reduced its stake in Zscaler, Inc., selling 3,479 shares during the third quarter of 2023. This move represents a 75.1% decrease in its holdings, leaving the institutional investor with 1,156 shares valued at approximately $346,000 at the close of the reporting period.
In recent weeks, several other institutional investors and hedge funds have also adjusted their investments in Zscaler. Notably, Federated Hermes Inc. raised its stake by an impressive 314.0% during the second quarter, acquiring an additional 888,888 shares, bringing its total to 1,171,983 shares worth about $367.9 million. Similarly, Vanguard Group Inc. increased its holdings by 8.3%, now owning 10,715,132 shares valued at around $3.36 billion after purchasing an additional 824,626 shares.
Another significant shift came from Skandinaviska Enskilda Banken AB, which increased its investment in Zscaler by 167.7% and now holds 421,393 shares worth approximately $132.25 million. Additionally, 1832 Asset Management L.P. raised its holdings by 131.4%, while Jefferies Financial Group Inc. lifted its position by 113.5% during the same quarter.
As of now, institutional investors collectively own 46.45% of Zscaler’s stock. Insider trading activity has also been notable. On December 16, 2023, Raj Judge, Executive Vice President, sold 3,438 shares at an average price of $230.82, totaling $793,559.16. Following this transaction, Judge retains 70,394 shares valued at approximately $16.25 million, marking a 4.66% decrease in ownership.
Additionally, Jagtar Singh Chaudhry, the Chief Executive Officer, sold 2,843 shares on the same day for a total of $656,221.26. After this sale, Chaudhry owns 347,857 shares, valued at around $80.29 million, representing a 0.81% decline in ownership. In total, insiders sold 19,350 shares valued at nearly $4.47 million in the last quarter, with corporate insiders holding 17.20% of the company’s stock.
Market Performance and Future Projections
Zscaler’s stock opened at $177.72 on the last trading day, reflecting a 4.0% increase. The company has a market capitalization of $28.34 billion and a price-to-earnings (P/E) ratio of -683.51. Its shares have fluctuated between a 52-week low of $162.87 and a high of $336.99.
Recent earnings data released on November 25, 2023, indicated that Zscaler reported earnings per share of $0.96, surpassing analysts’ expectations of $0.85 by $0.11. The company’s revenue for the quarter amounted to $788.11 million, exceeding the anticipated $773.86 million. This represents a 25.5% year-over-year increase, compared to $0.77 earnings per share in the same quarter last year.
Looking ahead, Zscaler has set its fiscal year 2026 guidance at earnings per share between $3.780 and $3.820, with a second-quarter forecast of $0.890 to $0.900 EPS. Analysts predict a slight decline in earnings for the current year, estimating an EPS of -0.1.
About Zscaler
Zscaler is a cloud security company that provides a cloud-native platform to safeguard users, applications, and data in an era where organizations are moving away from traditional network-centric security models. The company emphasizes a zero trust approach, ensuring no implicit trust for users or devices and offering secure access to the internet, software-as-a-service applications, and private applications regardless of user location. Zscaler’s services aim to replace legacy security appliances and traditional VPNs, helping organizations simplify their security measures while accommodating modern, distributed workforces.
For more detailed information on Zscaler’s performance and institutional holdings, visit HoldingsChannel.com for the latest 13F filings and insider trades.
