Insider Selling: Zoom Communications (NASDAQ:ZM) CEO Sells 69,923 Shares of Stock

Zoom Communications, Inc. (NASDAQ:ZM) CEO Eric Yuan sold 69,923 shares of the firm’s stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the transaction, the chief executive officer directly owned 36,796 shares of the company’s stock, valued at $2,988,571.12. The trade was a 65.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM traded up $6.63 during midday trading on Wednesday, reaching $89.03. 6,058,782 shares of the company’s stock were exchanged, compared to its average volume of 4,152,843. The company’s 50 day simple moving average is $82.24 and its two-hundred day simple moving average is $83.92. The firm has a market capitalization of $26.23 billion, a PE ratio of 14.36, a price-to-earnings-growth ratio of 4.74 and a beta of 0.88. Zoom Communications, Inc. has a 12 month low of $69.15 and a 12 month high of $97.58.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.Zoom Communications’s revenue was up 5.3% on a year-over-year basis. During the same period in the previous year, the business posted $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. On average, research analysts anticipate that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on ZM shares. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Zoom Communications in a research report on Thursday, February 26th. Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Zoom Communications in a research report on Monday, December 29th. Argus upgraded shares of Zoom Communications to a “hold” rating in a research report on Monday, March 9th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $100.00 target price on shares of Zoom Communications in a research report on Friday, March 13th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $95.32.

Institutional Investors Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Advocate Investing Services LLC acquired a new stake in Zoom Communications in the 4th quarter valued at about $26,000. Strive Financial Group LLC acquired a new stake in Zoom Communications in the 4th quarter valued at about $27,000. Toth Financial Advisory Corp acquired a new stake in Zoom Communications in the 4th quarter valued at about $28,000. Root Financial Partners LLC acquired a new stake in Zoom Communications in the 3rd quarter valued at about $33,000. Finally, Sound Income Strategies LLC increased its position in Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock valued at $33,000 after acquiring an additional 200 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

About Zoom Communications

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.