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 dramatic decrease of 75.1% in their holdings, leaving the institutional investor with only 1,156 shares valued at approximately $346,000 at the end of the reporting period.
Several other institutional investors also adjusted their positions in Zscaler during the quarter. Notably, Federated Hermes Inc. increased its stake by 314.0%, acquiring an additional 888,888 shares to reach a total of 1,171,983 shares worth around $367.9 million. Similarly, Vanguard Group Inc. raised its position by 8.3%, owning 10,715,132 shares valued at $3.36 billion after purchasing 824,626 shares.
Other notable increases came from Skandinaviska Enskilda Banken AB, which raised its holdings by 167.7% to 421,393 shares, and 1832 Asset Management L.P., which boosted its stake by 131.4%, bringing its total to 461,800 shares. Overall, institutional investors now hold 46.45% of Zscaler’s stock.
Insider Transactions and Stock Performance
In related developments, Zscaler executives have also engaged in stock sales. On December 16, Raj Judge, the Executive Vice President, sold 3,438 shares at an average price of $230.82, totaling approximately $793,559. Post-sale, he retained 70,394 shares valued at $16.25 million, reflecting a 4.66% decrease in ownership.
Similarly, CEO Jagtar Singh Chaudhry sold 2,843 shares on the same day for around $656,221, reducing his ownership by 0.81%. Collectively, insiders sold 19,350 shares in the last quarter, valued at around $4.47 million. Corporate insiders now own 17.20% of the company’s stock.
Zscaler’s share price opened at $177.72 on Friday, marking a 4.0% increase. The company has a market capitalization of $28.34 billion, with a price-to-earnings (P/E) ratio of -683.51 and a beta of 1.02. The stock has experienced a 52-week low of $162.87 and a high of $336.99.
Company Financials and Future Outlook
Zscaler reported its quarterly earnings on November 25, revealing earnings per share of $0.96, surpassing the consensus estimate of $0.85 by $0.11. The company generated revenue of $788.11 million, exceeding analysts’ expectations of $773.86 million. Year-over-year revenue increased by 25.5%, compared to $0.77 earnings per share in the same quarter last year.
Looking ahead, Zscaler has set its guidance for fiscal year 2026 between $3.780 and $3.820 earnings per share, with a quarterly estimate of $0.890 to $0.900 EPS for Q2 2026. Analysts anticipate a forecast of -0.1 EPS for the current year.
Zscaler operates as a cloud security company, providing a platform designed to protect users and data as organizations shift from traditional security models. The firm emphasizes a zero trust approach, ensuring secure access to applications regardless of user location. Its services aim to simplify security and support modern workforces, positioning itself as a contemporary alternative to legacy security solutions.
