Key Points
- Insider sale: Velchamy Sankarlingam sold 7,568 shares of Zoom on January 12 at an average price of $86.55 for $655,010, reducing his stake by 5.26% to 136,182 shares valued at about $11.79 million.
- Catalysts and valuation: Citi upgraded ZM to Buy (PT $106) citing AI growth and Zoom recently beat quarterly EPS estimates ($1.52 vs. $1.44), while the stock trades near its 12‑month high with a market cap of ~$24.6 billion and a P/E around 16.2.
Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) insider Velchamy Sankarlingam sold 7,568 shares of the company's stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $86.55, for a total transaction of $655,010.40. Following the completion of the sale, the insider directly owned 136,182 shares of the company's stock, valued at $11,786,552.10. The trade was a 5.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.
Velchamy Sankarlingam also recently made the following trade(s):
- On Wednesday, December 10th, Velchamy Sankarlingam sold 2,595 shares of Zoom Communications stock. The stock was sold at an average price of $87.84, for a total transaction of $227,944.80.
Zoom Communications Price Performance
ZM stock opened at $83.19 on Wednesday. Zoom Communications, Inc. has a 12 month low of $64.41 and a 12 month high of $91.43. The firm has a market cap of $24.63 billion, a PE ratio of 16.18, a P/E/G ratio of 7.79 and a beta of 0.87. The firm has a 50 day simple moving average of $85.45 and a 200 day simple moving average of $81.39.
Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same quarter in the previous year, the business posted $1.38 earnings per share. The firm's quarterly revenue was up 4.4% compared to the same quarter last year. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. As a group, sell-side analysts expect that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.
Key Zoom Communications News
Here are the key news stories impacting Zoom Communications this week:
- Positive Sentiment: Citi upgraded ZM from Neutral to Buy and raised its price target to $106, highlighting AI growth opportunities at Zoom and signaling renewed fundamental momentum; that upgrade sparked an intraday rally. Citigroup upgrades Zoom Communications (ZM)
- Positive Sentiment: Coverage across outlets repeated Citi’s bullish view (multiple write-ups on Yahoo Finance/Business Insider and MSN), amplifying buying interest on AI-related growth expectations. Zoom Stock Surges After Citi Upgrade on AI Growth Bets
- Positive Sentiment: Zoom promoted an AI-focused education initiative (national student learning experience), reinforcing its strategy to expand AI use cases and customer engagement beyond meetings. That product/strategy news supports the narrative behind analyst optimism. Zoom reinforces commitment to AI literacy
- Neutral Sentiment: Benzinga and other outlets ran broader analyst-roundup pieces and commentary on Zoom; mixed analyst views mean these stories amplified attention but contained both bullish and cautious takes. Beyond The Numbers: 13 Analysts Discuss Zoom Communications Stock
- Neutral Sentiment: One feature piece (Zacks) framed Zoom as a pandemic-era winner that could rebound — useful context but not a direct catalyst. Time For This Pandemic Favorite Stock to Roar Back?
- Neutral Sentiment: Reported short-interest data for January is inconsistent (shows 0 shares / NaN changes), indicating no clear short-pressure signal; this data point is noisy and unlikely to be driving today’s move. (Internal short-interest report)
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Elevation Point Wealth Partners LLC purchased a new stake in Zoom Communications in the 2nd quarter worth approximately $27,000. REAP Financial Group LLC increased its stake in shares of Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company's stock worth $28,000 after acquiring an additional 229 shares during the last quarter. FNY Investment Advisers LLC purchased a new stake in shares of Zoom Communications during the second quarter worth $31,000. Root Financial Partners LLC acquired a new stake in Zoom Communications during the third quarter valued at $33,000. Finally, Quent Capital LLC purchased a new position in Zoom Communications in the third quarter valued at about $34,000. 66.54% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes
ZM has been the topic of a number of analyst reports. Zacks Research raised Zoom Communications from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, December 31st. JMP Securities reissued a "market perform" rating on shares of Zoom Communications in a research report on Thursday, September 18th. Jefferies Financial Group boosted their price target on shares of Zoom Communications from $100.00 to $105.00 and gave the company a "buy" rating in a report on Tuesday, November 25th. UBS Group initiated coverage on shares of Zoom Communications in a research note on Monday, October 20th. They issued a "neutral" rating and a $85.00 price objective for the company. Finally, Wells Fargo & Company began coverage on shares of Zoom Communications in a research report on Tuesday, September 30th. They set an "equal weight" rating and a $90.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Zoom Communications has an average rating of "Moderate Buy" and an average price target of $93.82.
Read Our Latest Stock Report on ZM
Zoom Communications Company Profile
(
Get Free Report)
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.
Further Reading
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