Bank of New York Mellon Corp Purchases 434,981 Shares of Zoom Communications, Inc. $ZM

Key Points

• Bank of New York Mellon Corp increased its Zoom stake by 44.5% in the first quarter, buying 434,981 additional shares and bringing its total holdings to 1,411,745 shares worth about $113.5 million.
• Zoom’s latest quarterly results beat expectations, with EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion versus $1.22 billion expected; revenue also rose 5.5% year over year.
• Insider selling continued, with CFO Michelle Chang and CEO Eric S. Yuan both selling shares under pre-arranged trading plans, while analysts currently rate the stock a “Moderate Buy” with a consensus target price of $109.33.

Bank of New York Mellon Corp boosted its position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 44.5% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 1,411,745 shares of the company's stock after purchasing an additional 434,981 shares during the period. Bank of New York Mellon Corp owned about 0.48% of Zoom Communications worth $113,490,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Hillsdale Investment Management Inc. lifted its position in Zoom Communications by 18.7% during the first quarter. Hillsdale Investment Management Inc. now owns 14,600 shares of the company's stock worth $1,174,000 after acquiring an additional 2,300 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in Zoom Communications by 19.1% during the 1st quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 7,330 shares of the company's stock worth $589,000 after purchasing an additional 1,174 shares during the last quarter. Principal Financial Group Inc. boosted its stake in Zoom Communications by 384.2% in the 1st quarter. Principal Financial Group Inc. now owns 63,736 shares of the company's stock valued at $5,124,000 after purchasing an additional 50,574 shares during the period. Arbejdsmarkedets Tillaegspension boosted its stake in Zoom Communications by 25.6% in the 1st quarter. Arbejdsmarkedets Tillaegspension now owns 333,464 shares of the company's stock valued at $26,807,000 after purchasing an additional 68,042 shares during the period. Finally, Diversify Wealth Management LLC acquired a new position in Zoom Communications in the 1st quarter valued at $350,000. Institutional investors own 66.54% of the company's stock.

Insiders Place Their Bets

In other news, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares of the company's stock, valued at approximately $3,219,041.60. This represents a 19.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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 12,100 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.60, for a total transaction of $1,289,860.00. 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 90 days, insiders sold 48,517 shares of company stock worth $5,061,783. 8.83% of the stock is currently owned by insiders.

Zoom Communications Stock Performance

ZM stock opened at $90.91 on Tuesday. The company has a market capitalization of $26.66 billion, a P/E ratio of 13.35, a PEG ratio of 4.86 and a beta of 1.01. The company has a fifty day moving average price of $94.42 and a 200-day moving average price of $88.97. Zoom Communications, Inc. has a 52-week low of $69.15 and a 52-week high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.13. The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The business's revenue was up 5.5% on a year-over-year basis. During the same quarter in the previous 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, sell-side analysts forecast that Zoom Communications, Inc. will post 4.23 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts recently commented on ZM shares. KeyCorp upgraded shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a research note on Friday, May 22nd. Weiss Ratings cut Zoom Communications from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 30th. Cantor Fitzgerald lifted their price objective on Zoom Communications from $87.00 to $104.00 and gave the company a "neutral" rating in a report on Friday, May 22nd. Needham & Company LLC reissued a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a report on Thursday, July 2nd. Finally, Citigroup raised their price target on Zoom Communications from $122.00 to $126.00 and gave the stock 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's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $109.33.

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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