Key Points
- Eric Yuan sold 12,100 Zoom shares on May 4 at an average price of $106.60 for about $1.29 million, a transaction disclosed in an SEC filing and executed under a pre‑arranged Rule 10b5‑1 trading plan.
- Zoom missed EPS estimates for the quarter ($1.44 vs. $1.48) while beating revenue ($1.25B vs. $1.23B) and issued FY2027 guidance of 5.770–5.810 EPS and Q1 2027 guidance of 1.400–1.420 EPS.
- Major institutions have been buying—Norges Bank, AQR and Vanguard notably increased or initiated large positions—while Wall Street’s consensus is a Hold with an average price target of $95.32, and the stock trades near its 52‑week high with a market cap around $31B.
Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CEO Eric Yuan sold 12,100 shares of the business's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $106.60, for a total value of $1,289,860.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Zoom Communications Stock Down 3.6%
ZM stock opened at $105.13 on Thursday. The business has a 50 day moving average price of $82.82 and a 200 day moving average price of $85.17. The stock has a market cap of $30.98 billion, a price-to-earnings ratio of 16.96, a PEG ratio of 6.24 and a beta of 1.00. Zoom Communications, Inc. has a fifty-two week low of $69.15 and a fifty-two week high of $109.50.
Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). The business had revenue of $1.25 billion for the quarter, compared to analysts' expectations 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 for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.41 EPS. 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. As a group, sell-side analysts anticipate that Zoom Communications, Inc. will post 3.94 EPS for the current year.
Wall Street Analyst Weigh In
Several research analysts have commented on the company. Benchmark cut their price target on Zoom Communications from $115.00 to $110.00 and set a "buy" rating on the stock in a research report on Tuesday, February 24th. Wolfe Research raised Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price target on the stock in a research report on Thursday, February 5th. Zacks Research lowered Zoom Communications from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. KeyCorp lifted their price target on Zoom Communications from $69.00 to $74.00 and gave the stock an "underweight" rating in a research report on Thursday, February 26th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $115.00 price target on shares of Zoom Communications in a research report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $95.32.
Get Our Latest Stock Report on ZM
Zoom Communications News Summary
Here are the key news stories impacting Zoom Communications this week:
- Positive Sentiment: New product leadership — Zoom named Russell Dicker as Chief Product Officer, a hire that signals focus on product roadmap and AI integration that could support longer‑term growth. Zoom Appoints Russell Dicker as Chief Product Officer
- Positive Sentiment: Product/market expansion — Zoom launched a “Solopreneur 50” grants program and research aimed at AI‑enabled solo businesses, highlighting management's push to diversify revenue beyond meetings. Zoom Grants Solopreneurs With $150,000 Cash Grants
- Positive Sentiment: Technical momentum — ZM cleared a cup‑with‑handle breakout and received an IBD rating upgrade, which can attract momentum and retail buyers. Zoom Stock Soars After Cup With Handle Breakout; Rating Upgraded
- Positive Sentiment: Enterprise transition thesis — industry commentary and investor notes point to Zoom moving into larger enterprise deals, which could raise revenue quality and margins if execution continues. Zoom: The Transition To Large Enterprise
- Neutral Sentiment: Valuation debate — analyses argue ZM may be reasonably valued around ~18x earnings for some investors, but views differ; valuation alone is not an immediate catalyst. Does Zoom Look Undervalued At 18x Earnings?
- Negative Sentiment: Insider selling — CEO Eric Yuan and director Santiago Subotovsky disclosed sales (executed under 10b5‑1 plans), which can create short‑term selling pressure even if pre‑arranged. Insider Sale SEC Filing
- Negative Sentiment: Sector headwinds — commentary about rotation away from high‑beta cloud/software names amid rate and geopolitical uncertainty is a persistent multiple‑compression risk for ZM. Josh Brown now has just one software name in his 'best stocks' list
Institutional Inflows and Outflows
A number of institutional investors have recently modified their holdings of ZM. Norges Bank acquired a new position in shares of Zoom Communications in the fourth quarter valued at approximately $509,788,000. AQR Capital Management LLC increased its holdings in shares of Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock valued at $1,052,328,000 after purchasing an additional 3,718,186 shares during the period. Two Sigma Investments LP acquired a new position in shares of Zoom Communications in the third quarter valued at approximately $86,709,000. Vanguard Group Inc. increased its holdings in shares of Zoom Communications by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock valued at $2,327,002,000 after purchasing an additional 1,029,623 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Zoom Communications by 46.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company's stock valued at $218,282,000 after purchasing an additional 836,594 shares during the period. Institutional investors and hedge funds own 66.54% of the company's stock.
About Zoom Communications
(
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.
See Also
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
