Key Points
- Zoom insider Velchamy Sankarlingam sold 7,645 shares at an average price of $99.26, generating approximately $758,843. The transaction was conducted under a Rule 10b5-1 plan to cover tax obligations, leaving him with 151,813 shares.
- Zoom shares opened at $98.16, with a market capitalization of approximately $28.64 billion and a 12-month trading range of $70.70 to $114.74.
- Zoom recently exceeded quarterly earnings and revenue estimates, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $113.62.
Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) Director Herbert Raymond Mcmaster sold 3,000 shares of Zoom Communications stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $94.71, for a total value of $284,130.00. Following the transaction, the director owned 8,479 shares in the company, valued at approximately $803,046.09. This represents a 26.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Zoom Communications Trading Up 0.2%
NASDAQ:ZM opened at $98.16 on Wednesday. Zoom Communications, Inc. has a 1 year low of $70.70 and a 1 year high of $114.74. The stock has a market cap of $28.64 billion, a price-to-earnings ratio of 26.98, a PEG ratio of 4.52 and a beta of 1.03. The stock has a 50-day moving average price of $97.63 and a two-hundred day moving average price of $94.28.
Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The company's revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.53 earnings per share. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. Sell-side analysts forecast that Zoom Communications, Inc. will post 4.27 earnings per share for the current year.
Wall Street Analyst Weigh In
ZM has been the subject of a number of research reports. UBS Group increased their target price on Zoom Communications from $105.00 to $115.00 and gave the stock a "neutral" rating in a research note on Thursday, August 20th. Needham & Company LLC reaffirmed a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a research note on Wednesday, August 26th. KeyCorp reiterated a "sector weight" rating on shares of Zoom Communications in a report on Wednesday, August 26th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, Bank of America initiated coverage on shares of Zoom Communications in a research report on Wednesday, August 19th. They set a "buy" rating and a $130.00 price objective for the company. Fourteen investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of "Moderate Buy" and a consensus price target of $113.62.
Get Our Latest Stock Analysis on ZM
Institutional Inflows and Outflows
A number of hedge funds have recently modified their holdings of ZM. Signal Advisors Wealth LLC acquired a new stake in Zoom Communications in the 3rd quarter valued at approximately $245,000. Courier Capital LLC boosted its position in Zoom Communications by 94.7% during the 3rd quarter. Courier Capital LLC now owns 19,342 shares of the company's stock worth $1,756,000 after acquiring an additional 9,410 shares during the last quarter. NorthCrest Asset Manangement LLC boosted its position in Zoom Communications by 2.5% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 13,737 shares of the company's stock worth $1,300,000 after acquiring an additional 332 shares during the last quarter. Sherry Group Inc. boosted its position in Zoom Communications by 106.0% during the 3rd quarter. Sherry Group Inc. now owns 18,825 shares of the company's stock worth $1,666,000 after acquiring an additional 9,685 shares during the last quarter. Finally, Prism Advisors Inc. bought a new position in shares of Zoom Communications during the 3rd quarter worth approximately $219,000. 66.54% of the stock is currently owned by institutional investors.
Key Zoom Communications News
Here are the key news stories impacting Zoom Communications this week:
- Positive Sentiment: Expanded Zoom Contact Center connectivity: Toku is bringing local numbering and PSTN connectivity to Zoom Contact Center in Asia Pacific, allowing enterprises to select the provider directly through Zoom’s web portal. The integration could improve Zoom’s regional competitiveness and support Contact Center adoption. Toku Brings Carrier-Grade APAC Connectivity to Zoom Contact Center
- Positive Sentiment: AI growth opportunity remains a catalyst: A recent analysis argues that Zoom’s AI initiatives could create a growth inflection, while its prior quarterly results showed earnings and revenue modestly ahead of expectations. The company reported $1.55 in quarterly EPS on $1.28 billion in revenue, with revenue up 4.9% year over year. Zoom Communications: AI-Driven Growth Inflection Appears Promising - Still Not A Buy
- Neutral Sentiment: Valuation tempers optimism: The same analysis views AI-driven growth as promising but stops short of recommending the stock, reflecting concerns that ZM’s valuation may already discount a meaningful improvement in growth. The shares trade near their 50-day average and below the 52-week high, with a reported P/E ratio of about 27 and PEG ratio of 4.52.
- Negative Sentiment: Multiple insiders sold shares: CFO Michelle Chang sold 8,489 shares for approximately $844,316, while insider Velchamy Sankarlingam sold 7,645 shares for about $758,843. Director Herbert Raymond McMaster also sold 3,000 shares. The transactions were conducted under pre-arranged Rule 10b5-1 plans; the Chang and Sankarlingam sales were specifically made to cover tax withholding on vested equity awards, reducing—but not eliminating—the bearish signal. Zoom Communications Insider Trading Report
Zoom Communications Company Profile
(
Get Free Report)
Zoom Communications, Inc (NASDAQ:ZM), formerly known as Zoom Video Communications, is a cloud-based communications and collaboration technology company. Its platform enables organizations and individuals to connect through video meetings, voice communications, messaging, webinars and other digital collaboration tools.
The company's Zoom Workplace platform includes products such as Zoom Meetings, Zoom Phone, Team Chat, Whiteboard and Zoom Rooms. Zoom also provides Zoom Contact Center, Zoom Events and other tools designed to support customer engagement, employee collaboration and hybrid work.
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