Eric Yuan Sells 73,378 Shares of Zoom Communications (NASDAQ:ZM) Stock

Key Points

• Zoom Communications CEO Eric Yuan sold 73,378 shares at an average price of $82.85, totaling approximately $6.08 million, as reported to the SEC.
• The company's recent quarterly earnings showed revenue of $1.22 billion, slightly above analysts' expectations, but it missed earnings per share estimates.
• Equities analysts have set a consensus rating of "Hold" for Zoom Communications, with an average price target of $91.74.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CEO Eric Yuan sold 73,378 shares of the business's stock in a transaction dated Thursday, October 23rd. The shares were sold at an average price of $82.85, for a total transaction of $6,079,367.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Zoom Communications Stock Performance

ZM traded up $1.49 during midday trading on Friday, reaching $84.28. The company had a trading volume of 2,904,475 shares, compared to its average volume of 2,807,285. The stock has a market cap of $25.50 billion, a PE ratio of 22.24, a P/E/G ratio of 11.19 and a beta of 0.78. Zoom Communications, Inc. has a 12-month low of $64.41 and a 12-month high of $92.80. The business has a 50-day moving average price of $81.47 and a two-hundred day moving average price of $78.13.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings results on Thursday, August 21st. The company reported $0.99 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.39). Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter last year, the firm posted $1.39 earnings per share. Zoom Communications's revenue for the quarter was up 4.7% compared to the same quarter last year. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. On average, research analysts anticipate that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Rosenblatt Securities reissued a "buy" rating and issued a $110.00 price target on shares of Zoom Communications in a report on Thursday, September 18th. Piper Sandler reissued a "neutral" rating and issued a $85.00 price target on shares of Zoom Communications in a report on Friday, August 22nd. Robert W. Baird cut their price objective on shares of Zoom Communications from $100.00 to $95.00 and set an "outperform" rating for the company in a research note on Friday, August 22nd. Morgan Stanley began coverage on shares of Zoom Communications in a research note on Tuesday. They issued an "equal weight" rating and a $85.00 price objective for the company. Finally, Wells Fargo & Company began coverage on shares of Zoom Communications in a research note on Tuesday, September 30th. They issued an "equal weight" rating and a $90.00 price objective for the company. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of "Hold" and an average price target of $91.74.

Institutional Investors Weigh In On Zoom Communications

Several institutional investors and hedge funds have recently modified their holdings of the stock. SouthState Corp purchased a new stake in Zoom Communications in the first quarter worth about $25,000. Elevation Point Wealth Partners LLC purchased a new stake in Zoom Communications in the second quarter worth about $27,000. Wayfinding Financial LLC purchased a new stake in Zoom Communications in the first quarter worth about $25,000. REAP Financial Group LLC grew its holdings in 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 purchasing an additional 229 shares during the period. Finally, FNY Investment Advisers LLC purchased a new stake in Zoom Communications in the second quarter worth about $31,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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