American Century Companies Inc. Trims Stock Holdings in Zscaler, Inc. $ZS

American Century Companies Inc. reduced its stake in shares of Zscaler, Inc. (NASDAQ:ZS) by 11.1% during the third quarter, Holdings Channel reports. The institutional investor owned 2,418,950 shares of the company’s stock after selling 303,429 shares during the period. Zscaler comprises 0.4% of American Century Companies Inc.’s holdings, making the stock its 22nd biggest position. American Century Companies Inc.’s holdings in Zscaler were worth $724,863,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in ZS. Bessemer Group Inc. lifted its holdings in Zscaler by 3.2% during the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Cox Capital Mgt LLC raised its position in shares of Zscaler by 0.6% during the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after purchasing an additional 33 shares during the period. Brookstone Capital Management lifted its stake in shares of Zscaler by 3.7% during the 3rd quarter. Brookstone Capital Management now owns 936 shares of the company’s stock valued at $280,000 after buying an additional 33 shares in the last quarter. Wedbush Securities Inc. lifted its position in shares of Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, 180 Wealth Advisors LLC boosted its stake in Zscaler by 0.5% in the 3rd quarter. 180 Wealth Advisors LLC now owns 7,897 shares of the company’s stock worth $2,366,000 after purchasing an additional 36 shares during the period. 46.45% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $656,221.26. Following the sale, the chief executive officer owned 347,857 shares of the company’s stock, valued at approximately $80,292,352.74. This trade represents a 0.81% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James A. Beer sold 653 shares of the business’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the transaction, the director directly owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. The trade was a 15.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. 17.20% of the stock is owned by company insiders.

Key Headlines Impacting Zscaler

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

Zscaler Trading Down 12.2%

Shares of ZS opened at $146.99 on Friday. The firm has a market capitalization 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, Inc. has a 1-year low of $140.56 and a 1-year high of $336.99. The company has a 50-day moving average of $198.92 and a 200 day moving average of $255.20.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The business had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company’s quarterly revenue was up 25.9% compared to the same quarter last year. During the same period last year, the company posted $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. On average, research analysts expect that Zscaler, Inc. will post -0.1 EPS for the current year.

Wall Street Analysts Forecast Growth

ZS has been the topic of several research analyst reports. HC Wainwright reissued a “buy” rating on shares of Zscaler in a report on Wednesday, November 26th. BMO Capital Markets decreased their price target on shares of Zscaler from $315.00 to $210.00 and set an “outperform” rating on the stock in a research note on Friday. Barclays set a $220.00 price objective on shares of Zscaler in a report on Thursday, February 19th. Wedbush lifted their target price on Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a report on Monday, November 10th. Finally, Capital One Financial set a $320.00 target price on Zscaler and gave the stock an “overweight” rating in a research report on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $274.37.

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.