Assenagon Asset Management S.A. Trims Holdings in Zoom Communications, Inc. $ZM

Key Points

• Assenagon Asset Management cut its Zoom stake by 54% in Q1, selling more than 524,000 shares and ending with 447,561 shares worth about $36 million.
• Zoom insiders were also selling: CFO Michelle Chang and CEO Eric S. Yuan both reduced their holdings in April through pre-arranged Rule 10b5-1 plans, and insiders sold 156,638 shares in the last quarter overall.
• Zoom’s latest results topped expectations, with Q1 EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion, while analysts maintain a Moderate Buy consensus and a $109.33 average price target.

Assenagon Asset Management S.A. decreased its position in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 54.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 447,561 shares of the company's stock after selling 524,922 shares during the quarter. Assenagon Asset Management S.A. owned approximately 0.15% of Zoom Communications worth $35,979,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently added to or reduced their stakes in the business. NewEdge Advisors LLC lifted its position in Zoom Communications by 16.8% in the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock valued at $591,000 after buying an additional 1,153 shares during the last quarter. Intech Investment Management LLC increased its holdings in Zoom Communications by 59.1% during the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock worth $1,238,000 after purchasing an additional 6,235 shares during the period. Geneos Wealth Management Inc. increased its stake in shares of Zoom Communications by 82.0% during the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock worth $65,000 after buying an additional 397 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Zoom Communications in the 2nd quarter valued at $217,000. Finally, Invesco Ltd. lifted its holdings in Zoom Communications by 7.0% during the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company's stock worth $56,942,000 after buying an additional 47,749 shares during the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at approximately $2,477,576.44. This represents a 21.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, CEO Eric S. Yuan sold 69,923 shares of the company's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares of the company's stock, valued at $2,988,571.12. This trade represents a 65.52% 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. In the last quarter, insiders sold 156,638 shares of company stock valued at $13,900,194. 8.83% of the stock is owned by company insiders.

Zoom Communications Stock Performance

ZM opened at $86.48 on Friday. The firm has a 50 day moving average price of $96.80 and a 200 day moving average price of $88.87. Zoom Communications, Inc. has a 1 year low of $69.15 and a 1 year high of $114.74. The company has a market cap of $25.36 billion, a PE ratio of 12.70, a price-to-earnings-growth ratio of 4.58 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the previous year, the business posted $1.43 EPS. The business's quarterly revenue was up 5.5% on a year-over-year basis. 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. On average, sell-side analysts predict that Zoom Communications, Inc. will post 4.08 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ZM. Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Piper Sandler lifted their target price on Zoom Communications from $91.00 to $107.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Robert W. Baird boosted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 19th. Needham & Company LLC increased their price objective on Zoom Communications from $100.00 to $130.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Finally, Citigroup lifted their price target on shares of Zoom Communications from $122.00 to $126.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of "Moderate Buy" and a consensus price target of $109.33.

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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