AE Wealth Management LLC Buys Shares of 22,728 Zoom Communications, Inc. (NASDAQ:ZM)

Key Points

• AE Wealth Management LLC purchased 22,728 shares of Zoom Communications, valued at approximately $1.68 million, as part of its first-quarter investment strategy.
• Zoom Communications reported earnings of $1.43 per share for the quarter, exceeding analysts' estimates, with revenues reaching $1.17 billion, marking a 2.9% year-over-year growth.
• Institutional investors own over 66.54% of Zoom's stock, with notable significant positions being taken by Altshuler Shaham Ltd and T. Rowe Price Investment Management Inc. in recent quarters.

AE Wealth Management LLC bought a new position in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 22,728 shares of the company's stock, valued at approximately $1,677,000.

A number of other large investors have also recently made changes to their positions in ZM. Altshuler Shaham Ltd increased its holdings in Zoom Communications by 285.9% during the 4th quarter. Altshuler Shaham Ltd now owns 2,056,277 shares of the company's stock worth $167,813,000 after acquiring an additional 1,523,480 shares during the period. T. Rowe Price Investment Management Inc. grew its position in shares of Zoom Communications by 24.3% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 6,385,523 shares of the company's stock valued at $521,123,000 after purchasing an additional 1,247,717 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Zoom Communications by 357.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 998,744 shares of the company's stock valued at $81,507,000 after purchasing an additional 780,446 shares in the last quarter. Victory Capital Management Inc. increased its holdings in shares of Zoom Communications by 119.5% in the first quarter. Victory Capital Management Inc. now owns 1,405,311 shares of the company's stock worth $103,670,000 after purchasing an additional 765,092 shares during the period. Finally, Junto Capital Management LP purchased a new stake in shares of Zoom Communications in the fourth quarter worth $36,580,000. 66.54% of the stock is owned by institutional investors.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $74.82 on Friday. The business has a 50 day moving average price of $77.97 and a 200-day moving average price of $77.91. Zoom Communications, Inc. has a fifty-two week low of $55.06 and a fifty-two week high of $92.80. The firm has a market cap of $22.64 billion, a PE ratio of 22.47, a price-to-earnings-growth ratio of 12.26 and a beta of 0.68.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $1.30 by $0.13. Zoom Communications had a net margin of 22.31% and a return on equity of 11.08%. The company had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period in the prior year, the business posted $1.35 earnings per share. Zoom Communications's revenue for the quarter was up 2.9% on a year-over-year basis. Research analysts predict that Zoom Communications, Inc. will post 2.93 EPS for the current year.

Wall Street Analysts Forecast Growth

ZM has been the subject of several recent analyst reports. Scotiabank boosted their target price on Zoom Communications from $75.00 to $85.00 and gave the stock a "sector perform" rating in a research report on Friday, May 16th. Cantor Fitzgerald reiterated a "neutral" rating and set a $87.00 price target on shares of Zoom Communications in a research report on Thursday, May 22nd. Rosenblatt Securities upped their price objective on shares of Zoom Communications from $90.00 to $100.00 and gave the stock a "buy" rating in a research report on Thursday, May 22nd. Citigroup lowered their target price on shares of Zoom Communications from $85.00 to $84.00 and set a "neutral" rating on the stock in a research note on Thursday, May 15th. Finally, KeyCorp assumed coverage on shares of Zoom Communications in a research note on Friday, June 6th. They issued an "underweight" rating and a $73.00 price target for the company. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $87.00.

Insider Activity

In related news, Director Janet Napolitano sold 2,617 shares of the firm's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $76.78, for a total value of $200,933.26. Following the completion of the sale, the director owned 4,728 shares of the company's stock, valued at $363,015.84. This trade represents a 35.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Jonathan Chadwick sold 25,000 shares of the business's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $74.86, for a total transaction of $1,871,500.00. Following the transaction, the director directly owned 5,875 shares in the company, valued at approximately $439,802.50. The trade was a 80.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 90,017 shares of company stock valued at $6,804,703. 11.51% of the stock is owned by insiders.

Zoom Communications 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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