Allstate Corp Increases Holdings in Zoom Communications, Inc. $ZM

Key Points

• Allstate Corp boosted its Zoom Communications stake by 122.3% in the fourth quarter, ending with 20,566 shares valued at about $1.78 million.
• Zoom reported a strong quarter, with EPS of $1.55 and revenue of $1.24 billion, both ahead of analyst expectations; revenue also rose 5.5% year over year.
• Wall Street sentiment remains constructive, with multiple analysts raising price targets and the stock carrying a consensus rating of “Moderate Buy” and an average target price of $108.15.

Allstate Corp increased its position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 122.3% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 20,566 shares of the company's stock after acquiring an additional 11,313 shares during the period. Allstate Corp's holdings in Zoom Communications were worth $1,775,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of ZM. Toth Financial Advisory Corp purchased a new stake in Zoom Communications in the 4th quarter valued at approximately $28,000. Sound Income Strategies LLC lifted its stake in Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after buying an additional 200 shares in the last quarter. Cloud Capital Management LLC purchased a new stake in Zoom Communications in the 3rd quarter valued at approximately $42,000. Activest Wealth Management lifted its stake in shares of Zoom Communications by 4,318.2% during the 4th quarter. Activest Wealth Management now owns 486 shares of the company's stock worth $42,000 after purchasing an additional 475 shares during the period. Finally, MAI Capital Management lifted its stake in shares of Zoom Communications by 34.7% during the 3rd quarter. MAI Capital Management now owns 579 shares of the company's stock worth $48,000 after purchasing an additional 149 shares during the period. Hedge funds and other institutional investors own 66.54% of the company's stock.

Zoom Communications Price Performance

NASDAQ:ZM opened at $100.46 on Friday. The firm has a 50-day moving average of $90.85 and a two-hundred day moving average of $87.25. The stock has a market cap of $29.60 billion, a P/E ratio of 14.75, a PEG ratio of 5.72 and a beta of 1.00. Zoom Communications, Inc. has a 1-year low of $69.15 and a 1-year high of $113.73.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts' consensus estimates of $1.42 by $0.13. The company had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm's revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.43 EPS. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. As a group, equities analysts expect that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other news, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.58, for a total transaction of $562,102.92. Following the transaction, the director owned 142,882 shares of the company's stock, valued at approximately $15,228,363.56. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Aparna Bawa sold 12,886 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at $173,312.36. The trade was a 86.69% decrease in their position. 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. In the last ninety days, insiders have sold 144,329 shares of company stock valued at $12,364,989. Corporate insiders own 11.51% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ZM. Mizuho increased their price target on Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday, May 22nd. Wells Fargo & Company increased their price target on Zoom Communications from $90.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Friday, May 22nd. Morgan Stanley increased their price target on Zoom Communications from $92.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Friday, May 22nd. Benchmark upped their price objective on Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a report on Thursday, May 21st. Finally, BTIG Research upped their price objective on Zoom Communications from $100.00 to $125.00 and gave the stock a "buy" rating in a report on Friday, May 22nd. Fourteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $108.15.

Zoom Communications Company Profile

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.

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