616,036 Zoom Communications, Inc. $ZM Shares Acquired by Aberdeen Group plc

Key Points

• Aberdeen Group increased its Zoom stake by 192% in the third quarter, adding 616,036 shares to reach 936,891 shares, valued at about $85 million.
• Zoom’s quarterly results beat analyst expectations: earnings were $1.55 per share versus $1.48 expected, while revenue of $1.28 billion rose 4.9% year over year.
• Analysts have a Moderate Buy consensus rating and an average price target of $114.48; shares opened at $99.80 in the report.

Aberdeen Group plc lifted its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 192.0% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 936,891 shares of the company's stock after acquiring an additional 616,036 shares during the period. Aberdeen Group plc owned 0.32% of Zoom Communications worth $85,042,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Pacer Advisors Inc. grew its holdings in shares of Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company's stock valued at $208,680,000 after purchasing an additional 253,181 shares during the period. Dimensional Fund Advisors LP increased its position in Zoom Communications by 4.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company's stock worth $189,051,000 after purchasing an additional 94,043 shares during the last quarter. Bank of America Corp DE increased its position in Zoom Communications by 50.5% during the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company's stock worth $142,108,000 after purchasing an additional 592,899 shares during the last quarter. Bank of New York Mellon Corp increased its position in Zoom Communications by 44.5% during the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company's stock worth $113,490,000 after purchasing an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in Zoom Communications by 2.8% during the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company's stock worth $109,531,000 after purchasing an additional 36,657 shares during the period. Institutional investors and hedge funds own 66.54% of the company's stock.

Zoom Communications Trading Up 2.1%

Shares of NASDAQ:ZM opened at $99.80 on Friday. The company has a market capitalization of $29.12 billion, a price-to-earnings ratio of 9.24, a PEG ratio of 4.45 and a beta of 1.02. Zoom Communications, Inc. has a 12-month low of $70.70 and a 12-month high of $114.74. The business has a 50-day moving average price of $94.39 and a 200 day moving average price of $92.31.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter in the prior year, the company posted $1.53 earnings per share. Zoom Communications's revenue for the quarter was up 4.9% compared to the same quarter last year. 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. As a group, equities research analysts predict that Zoom Communications, Inc. will post 4.16 earnings per share for the current fiscal year.

Latest Zoom Communications News

These are some of the ZM news items that stood out recently:

• Positive Sentiment: Zoom is investing in Medaica’s Telehealth 2.0 platform, which aims to bring integrated devices and AI-assisted clinical exams into homes and care facilities. The move could extend Zoom’s healthcare business beyond video visits. Zoom invests in Medaica for next generation of its telehealth platform
• Positive Sentiment: Zoom is also integrating Quiq’s AI capabilities with Zoom Contact Center and expanding support for AI startups. The broader push could strengthen its position in automated customer service and AI-driven enterprise workflows. Does AI And Telehealth Push Change The Bull Case For Zoom (ZM)?
• Negative Sentiment: A critical remote-code-execution vulnerability affected Zoom clients across macOS, Windows, iOS and Android. Zoom has issued updated software and security guidance, which mitigates the immediate issue, but the disclosure highlights cybersecurity risk. What Does Zoom Communications (ZM) Security Flaw Fix Mean For Customers?

Insider Buying and Selling at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,645 shares of the company's stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $99.26, for a total value of $758,842.70. Following the transaction, the insider directly owned 151,813 shares in the company, valued at approximately $15,068,958.38. This represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Santiago Subotovsky sold 2,637 shares of the company's stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $89.56, for a total transaction of $236,169.72. Following the completion of the transaction, the director owned 113,875 shares in the company, valued at approximately $10,198,645. This represents a 2.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 83,582 shares of company stock valued at $8,054,735. 8.83% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

ZM has been the topic of several recent analyst reports. Cantor Fitzgerald reiterated a "neutral" rating and issued a $104.00 target price on shares of Zoom Communications in a report on Wednesday, October 21st. UBS Group dropped their price target on shares of Zoom Communications from $115.00 to $112.00 and set a "neutral" rating for the company in a research note on Wednesday, October 21st. BTIG Research restated a "buy" rating and set a $125.00 price target on shares of Zoom Communications in a report on Wednesday, October 21st. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $130.00 price target on shares of Zoom Communications in a research report on Wednesday, October 21st. Finally, Morgan Stanley upped their price objective on Zoom Communications from $105.00 to $107.00 and gave the company an "equal weight" rating in a report on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $114.48.

Zoom Communications Company Profile

Zoom Communications provides cloud-based collaboration and communications software for businesses, organizations and individual users. Its products include Zoom Meetings for video conferencing, Zoom Team Chat, Zoom Phone, Zoom Rooms and tools for webinars and online events. The company also offers Zoom Contact Center and other services designed to support customer interactions and workplace collaboration. Founded in 2011 by Eric Yuan, Zoom became widely known for its video-conferencing service. The company, formerly known as Zoom Video Communications, adopted the name Zoom Communications in 2024 as it expanded its offerings beyond video meetings.

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