Mitsubishi UFJ Trust & Banking Corp has recently reported that it has increased its stake in Zscaler Inc. This news comes as a welcome development in the cloud-based internet security platform’s fortunes, with the company seeing growth in its holdings after the latest round of filings to the Securities and Exchange Commission.
In terms of specifics, Mitsubishi UFJ Trust & Banking Corp grew its stake in Zscaler by 19.2% during the fourth quarter. This means that the firm now owns 65,774 shares of the NASDAQ-listed company, with an estimated worth of $7.36 million based on recent filings with the SEC. It’s clear that Mitsubishi UFJ Trust & Banking Corp has confidence in Zscaler’s future prospects and is keen to build its position within this field.
For those who are not familiar with Zscaler, it is a market leader in providing online security solutions via its Zero Trust Exchange, Client Connector, Internet Access, Private Access, B2B, Cloud Protection and Digital Experience offerings. The company was founded by Jagtar Singh Chaudhry and Kailash Janakiraman and is focused on revolutionizing online security for businesses today.
Shares of NASDAQ-listed ZS opened at $126.69 on Friday as the company continues to make steady progress despite difficult trading conditions over the past year or so. Notably, this marks something of an increase from their twelve-month lows seen last year at $84.93.
With a current ratio of 2:01, quick ratio also at 2:01 along with debt-to-equity ratio standing at 2:16; Zscaler seems well-positioned for continued success going forward even amidst difficult industry dynamics and wider economic turbulence globally.
All in all, it seems likely that we will continue to see rising interest from investors like Mitsubishi UFJ Trust & Banking Corp when it comes to companies such as Zscaler who operate within the field of online security. It is clear that with online threats more prevalent than ever, enterprises need to ensure they have secure solutions in place to protect against the latest evolving risks and advances in cybercrime. Hence, there are numerous opportunities for growth within this sector, which will no doubt catch the attention of investors as we move forward into this new era of digital architecture and technology.
Institutional Investment and Insider Dealings Provide Encouragement for Zscaler’s Future Success
Zscaler, Inc., an internet security platform that provides cloud-based services to protect against cyber threats, has recently seen a significant increase in institutional investment. Hedge funds and other institutional investors have adjusted their holdings in Zscaler, with Artisan Partners Limited Partnership raising its holdings by 156.0% during Q4 of 2020. With an additional 2,909,057 shares purchased during that period, the company now owns over $534 million worth of stock in Zscaler.
Similarly, Renaissance Technologies LLC acquired a new position in the company during Q1 of this year, worth approximately $168.4 million. Marshall Wace LLP raised its holdings by an impressive 1,278.9% during Q3 of last year and currently owns shares worth $74.6 million. Allspring Global Investments Holdings LLC also saw a huge surge in holdings as it raised its stake by 55,282.1%, while First Trust Advisors LP raised its stake by 17.7%. Overall, hedge funds and institutional investors hold a sizable portion of Zscaler’s stock at around 45%.
Equity analysts have given mixed opinions on the stock’s future value with Barclays lowering the price objective from $135 to $127 as well as Stephens reducing their own from $175 to $165 earlier this year in March. However, BMO Capital Markets increased their target price on Zscaler from $115 to $120 around the same time.
In terms of performance metrics released by the company recently for Q1’21 earnings show hopes for potential growth based on meeting or exceeding analyst expectations such as reporting ($0.35) earnings per share for the quarter but beating analysts’ consensus estimates of ($0.43) by eight cents- generating revenue of $387.60 million versus an anticipated figure of only about $363 million according to some reports- indicating that Zscaler is exuding some positive signs.
Recent sales by company insiders also indicate some highly encouraging progress. The CEO, Jagtar Singh Chaudhry, sold 900 shares of the company’s stock in March for a little over $96,000, while COO Dali Rajic sold significantly more shares – 5,638 in total – for a value of approximately $602 million. Overall, insiders have sold an impressive sum of over $1.7 million dollars worth of Zscaler’s stock just within the last three months.
While there is some degree of variability in how analysts are valuing the stock and potential for future growth may be difficult to predict at this early stage- indeed with mixed outlooks from analysts a “Moderate Buy” consensus rating exists on it overall- Zscaler seems to be making strides as institutional investment and insider dealings provide encouragement for its future success.
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