Exploring Zscaler, Inc. (ZS) Investor Profile: Who’s Buying and Why?

Who Invests in Zscaler, Inc. (ZS) and Why?

Who Invests in Zscaler, Inc. (ZS) and Why?

Key Investor Types:

• Institutional Investors: As of July 31, 2024, institutional investors hold approximately 79% of Zscaler's outstanding shares.
• Retail Investors: Retail investors account for an estimated 21% of the total shareholding.
• Hedge Funds: Significant hedge funds have shown interest, with notable holdings from firms such as Vanguard Group and BlackRock.

Investment Motivations:

• Growth Prospects: The company has reported a revenue increase from $1,090.9 million in fiscal 2022 to $2,167.8 million in fiscal 2024, showcasing a year-over-year growth of 48% and 34% respectively.
• Market Position: Approximately 35% of the Forbes Global 2000 are customers, indicating strong market penetration.
• Technological Leadership: Investors are attracted to Zscaler's innovative cloud security solutions which address the increasing need for cybersecurity in a cloud-centric world.

Investment Strategies:

• Long-term Holding: Many institutional investors adopt a long-term perspective, focusing on the sustained growth of Zscaler's revenue and market share.
• Short-term Trading: Retail investors may engage in short-term trading, capitalizing on stock price volatility. The stock has shown a cumulative return of 112.83% from July 31, 2019, to July 31, 2024.
• Value Investing: Some investors view Zscaler as a growth stock with potential for future profitability despite current net losses.

Financial Performance Overview:

• Revenue (Fiscal 2024): $2,167.8 million
• Net Loss (Fiscal 2024): $57.7 million
• Operating Expenses (Fiscal 2024): $1,812.1 million
• Cash and Cash Equivalents (End of Fiscal 2024): $1,423.1 million

Market Performance:

• Market Capitalization: Approximately $19.8 billion as of January 31, 2024.
• Share Price (As of July 31, 2024): $212.83

Institutional Ownership and Major Shareholders of Zscaler, Inc. (ZS)

Institutional Ownership and Major Shareholders

As of July 31, 2024, the following are the top institutional investors in Zscaler, Inc. (ZS) along with their respective shareholdings:

In the recent quarter ending July 31, 2024, institutional ownership has seen notable changes:

• Increased Stakes: The Vanguard Group and BlackRock have both increased their holdings by approximately 2.5% and 1.8% respectively.
• Decreased Stakes: Fidelity Investments reduced its stake by 1.2% during the same period.

Institutional investors play a significant role in the company's stock price and strategy. Their large shareholdings often provide stability to the stock, as these entities typically engage in long-term investment strategies. Furthermore, their voting power can influence corporate governance and strategic direction.

As of July 31, 2024, the aggregate market value of common stock held by non-affiliates is approximately $19.8 billion.

Key Investors and Their Influence on Zscaler, Inc. (ZS)

Key Investors and Their Impact on Zscaler, Inc. (ZS)

Notable Investors: As of 2024, Zscaler, Inc. has attracted significant interest from various institutional investors and funds. Notable investors include:

• Vanguard Group, Inc. - holds approximately 8.5% of total shares outstanding.
• BlackRock, Inc. - has a stake of about 7.2%.
• Fidelity Investments - controls around 5.9% of the company.
• State Street Corporation - owns about 4.3%.
• ARK Investment Management LLC - known for a more aggressive growth strategy, holds around 3.1%.

Investor Influence: The presence of these institutional investors significantly impacts Zscaler's stock movements and strategic decisions. For instance, large investors like Vanguard and BlackRock often engage in active dialogue with management, influencing corporate governance and operational strategies. Their substantial stakes can lead to increased volatility in stock prices, particularly during earnings announcements or significant company developments.

Recent Moves: In early 2024, several key investors made notable moves:

• Vanguard Group increased its holdings by 1.2 million shares, signaling confidence in the company's growth trajectory.
• BlackRock reduced its stake by 0.5 million shares, possibly reallocating capital to other investments.
• Fidelity has maintained its position but is closely monitoring performance metrics.
• ARK Investment Management has been actively purchasing shares, indicating a bullish outlook on Zscaler's innovation in cloud security.

Through these strategic investments and their corresponding actions, these key investors play a crucial role in shaping the future direction and market perception of Zscaler, Inc.

Market Impact and Investor Sentiment of Zscaler, Inc. (ZS)

Market Impact and Investor Sentiment

Investor Sentiment: As of 2024, major shareholders exhibit a positive sentiment towards the company, reflecting confidence in its growth trajectory and market positioning. The company has reported significant revenue growth, with fiscal 2024 revenue reaching $2,167.8 million, a 34% increase from fiscal 2023's $1,617.0 million.

Recent Market Reactions: Following the announcement of key acquisitions and strategic partnerships, the stock price responded positively. For instance, on April 12, 2024, the acquisition of Airgap Networks Inc. for $124.4 million was well-received, with the stock experiencing a notable rise in trading volume. Additionally, the company's stock has appreciated from $190.32 on July 31, 2023, to $212.83 by July 31, 2024.

Analyst Perspectives: Analysts are optimistic about the impact of large investors and institutional ownership. The recent increase in institutional investments has been linked to the company's robust growth strategy and solid performance metrics. Notably, analysts project continued revenue growth driven by increased cloud adoption and the expansion of its customer base, which included approximately 35% of the Forbes Global 2000 as clients.

Overall, the combination of positive investor sentiment, favorable market reactions to strategic moves, and optimistic analyst outlooks contribute to a robust market presence for the company as of 2024.