American Century Companies Inc. Sells 303,429 Shares of Zscaler, Inc. $ZS

American Century Companies Inc. reduced its stake in Zscaler, Inc. (NASDAQ:ZS) by 11.1% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,418,950 shares of the company’s stock after selling 303,429 shares during the quarter. Zscaler accounts for 0.4% of American Century Companies Inc.’s portfolio, making the stock its 22nd largest position. American Century Companies Inc. owned approximately 1.53% of Zscaler worth $724,863,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of the company. Quantbot Technologies LP acquired a new position in Zscaler during the third quarter worth $2,915,000. Clare Market Investments LLC increased its stake in Zscaler by 61.6% in the 3rd quarter. Clare Market Investments LLC now owns 34,528 shares of the company’s stock valued at $10,347,000 after buying an additional 13,164 shares during the last quarter. Erste Asset Management GmbH lifted its position in Zscaler by 39.2% during the 3rd quarter. Erste Asset Management GmbH now owns 14,545 shares of the company’s stock worth $4,318,000 after buying an additional 4,094 shares in the last quarter. Handelsbanken Fonder AB boosted its stake in shares of Zscaler by 43.1% during the 3rd quarter. Handelsbanken Fonder AB now owns 55,907 shares of the company’s stock worth $16,753,000 after buying an additional 16,839 shares during the last quarter. Finally, Xponance Inc. boosted its stake in shares of Zscaler by 4.1% during the 3rd quarter. Xponance Inc. now owns 20,283 shares of the company’s stock worth $6,078,000 after buying an additional 800 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Stock Performance

Shares of Zscaler stock opened at $146.99 on Friday. Zscaler, Inc. has a 1 year low of $140.56 and a 1 year high of $336.99. The firm’s 50-day moving average is $198.92 and its 200 day moving average is $255.20. The stock has a market cap of $23.44 billion, a price-to-earnings ratio of -349.98, a PEG ratio of 341.17 and a beta of 1.02. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Sell-side analysts anticipate that Zscaler, Inc. will post -0.1 EPS for the current fiscal year.

Insider Activity

In related news, CFO Kevin Rubin sold 3,303 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $762,398.46. Following the completion of the sale, the chief financial officer directly owned 48,161 shares in the company, valued at approximately $11,116,522.02. This trade represents a 6.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,060 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $475,489.20. Following the transaction, the insider owned 52,148 shares in the company, valued at $12,036,801.36. This represents a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 19,350 shares of company stock valued at $4,471,509. Corporate insiders own 17.20% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Berenberg Bank lowered their target price on shares of Zscaler from $390.00 to $320.00 and set a “buy” rating on the stock in a report on Friday. Needham & Company LLC cut their price target on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research note on Friday. Sanford C. Bernstein upgraded shares of Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price objective on the stock in a research note on Friday, February 13th. Stifel Nicolaus dropped their price objective on Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Finally, KeyCorp cut their price target on Zscaler from $300.00 to $250.00 and set an “overweight” rating for the company in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $274.37.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.