Arrowstreet Capital Limited Partnership Raises Stake in Zoom Communications, Inc. $ZM

Key Points

• Arrowstreet Capital increased its Zoom Communications stake by 4.6% in the fourth quarter, buying 121,835 more shares and lifting its position to 2,767,681 shares worth about $238.8 million.
• Zoom reported better-than-expected quarterly results, posting EPS of $1.55 versus estimates of $1.42 and revenue of $1.24 billion versus $1.22 billion expected, with revenue up 5.5% year over year.
• Analysts have turned more constructive on the stock, with several price target increases and a consensus rating of “Moderate Buy” with an average target price of $109.33.

Arrowstreet Capital Limited Partnership boosted its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 4.6% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,767,681 shares of the company's stock after purchasing an additional 121,835 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.93% of Zoom Communications worth $238,823,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Zoom Communications by 4.0% during the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock valued at $2,327,002,000 after purchasing an additional 1,029,623 shares in the last quarter. AQR Capital Management LLC raised its stake in Zoom Communications by 23.4% during the third quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company's stock valued at $699,357,000 after purchasing an additional 1,607,253 shares in the last quarter. State Street Corp raised its stake in Zoom Communications by 5.0% during the fourth quarter. State Street Corp now owns 7,582,924 shares of the company's stock valued at $654,331,000 after purchasing an additional 363,776 shares in the last quarter. Norges Bank purchased a new stake in Zoom Communications during the fourth quarter valued at $509,788,000. Finally, Geode Capital Management LLC raised its stake in Zoom Communications by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company's stock valued at $445,254,000 after purchasing an additional 152,862 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company's stock.

Zoom Communications Price Performance

ZM stock opened at $93.68 on Monday. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $114.74. The stock has a market capitalization of $27.47 billion, a price-to-earnings ratio of 13.76, a price-to-earnings-growth ratio of 5.20 and a beta of 1.01. The firm's fifty day simple moving average is $96.00 and its two-hundred day simple moving average is $88.77.

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 business had revenue of $1.24 billion for 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 business's revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.43 earnings per share. 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 research analysts expect that Zoom Communications, Inc. will post 4.06 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ZM shares. Piper Sandler boosted their price objective on shares of Zoom Communications from $91.00 to $107.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. BTIG Research boosted their price objective on shares of Zoom Communications from $100.00 to $125.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Mizuho boosted their price objective on shares of Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a research report on Friday, May 22nd. Citizens Jmp reiterated a "market perform" rating on shares of Zoom Communications in a research report on Wednesday, May 20th. Finally, Wells Fargo & Company boosted their price objective on shares of Zoom Communications from $90.00 to $105.00 and gave the company an "equal weight" rating in a research report on Friday, May 22nd. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $109.33.

Insider Transactions at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of the company's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at approximately $173,312.36. This represents a 86.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer owned 30,467 shares in the company, valued at approximately $2,477,576.44. The trade was a 21.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders sold 156,638 shares of company stock valued at $13,900,194. Company insiders own 8.83% of the company's stock.

Zoom Communications 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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