BlueCrest Capital Management Ltd Makes New Investment in Zoom Communications, Inc. $ZM

Key Points

• BlueCrest Capital Management purchased 508,925 Zoom Communications shares in the second quarter, worth approximately $43.9 million, making Zoom its eighth-largest portfolio holding. Institutional investors collectively own 66.54% of the company.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS versus the $1.48 consensus estimate and $1.28 billion in revenue, up 4.9% year over year. The company also issued fiscal 2027 EPS guidance of $6.08–$6.12.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $112.55 versus the stock’s reported price of $96.18. Meanwhile, company insiders sold shares under pre-arranged plans, including CEO Eric Yuan’s sale of 12,100 shares.

BlueCrest Capital Management Ltd bought a new stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 508,925 shares of the company's stock, valued at approximately $43,925,000. Zoom Communications makes up about 1.5% of BlueCrest Capital Management Ltd's portfolio, making the stock its 8th largest position. BlueCrest Capital Management Ltd owned about 0.17% of Zoom Communications as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. WINTON GROUP Ltd purchased a new position in Zoom Communications in the second quarter valued at about $6,667,000. Engineers Gate Manager LP raised its position in shares of Zoom Communications by 153.0% in the 2nd quarter. Engineers Gate Manager LP now owns 57,286 shares of the company's stock valued at $4,944,000 after purchasing an additional 34,646 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of Zoom Communications by 86.3% during the 2nd quarter. NewEdge Advisors LLC now owns 21,637 shares of the company's stock valued at $1,867,000 after buying an additional 10,025 shares during the last quarter. IFP Advisors Inc boosted its stake in shares of Zoom Communications by 23.2% during the 2nd quarter. IFP Advisors Inc now owns 2,069 shares of the company's stock valued at $179,000 after buying an additional 389 shares during the last quarter. Finally, Allworth Financial LP grew its position in shares of Zoom Communications by 4.2% during the second quarter. Allworth Financial LP now owns 15,310 shares of the company's stock worth $1,321,000 after buying an additional 623 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications Stock Performance

ZM stock opened at $96.18 on Thursday. Zoom Communications, Inc. has a 1 year low of $70.70 and a 1 year high of $114.74. The stock has a market capitalization of $28.06 billion, a price-to-earnings ratio of 8.91, a PEG ratio of 4.46 and a beta of 1.04. The stock's fifty day moving average is $96.51 and its two-hundred day moving average is $91.73.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the prior year, the firm earned $1.53 earnings per share. The company's quarterly revenue was up 4.9% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. As a group, analysts predict that Zoom Communications, Inc. will post 4.26 EPS for the current fiscal year.

Insider Activity

In other Zoom Communications news, CEO Eric Yuan sold 12,100 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $95.34, for a total value of $1,153,614.00. Following the sale, the chief executive officer owned 22,998 shares in the company, valued at approximately $2,192,629.32. This trade represents a 34.47% 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. Also, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction that occurred 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 in the company, valued at approximately $3,219,041.60. This trade represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 50,881 shares of company stock worth $4,878,914 in the last quarter. Company insiders own 8.83% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Jefferies Financial Group dropped their price target on Zoom Communications from $118.00 to $116.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. HSBC lifted their price objective on shares of Zoom Communications from $107.00 to $133.00 and gave the stock a "buy" rating in a report on Tuesday, June 2nd. Bank of America initiated coverage on shares of Zoom Communications in a report on Wednesday, August 19th. They set a "buy" rating and a $130.00 target price on the stock. Rosenblatt Securities restated a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a research report on Friday, August 21st. Finally, Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, August 27th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $112.55.

Zoom Communications Profile

Zoom Communications, Inc NASDAQ: ZM is a communications technology company that provides cloud-based tools for video meetings, collaboration and business communications. The company was founded in 2011 by Eric Yuan and is headquartered in San Jose, California. It was previously known as Zoom Video Communications before adopting the Zoom Communications name.

Its product portfolio includes Zoom Meetings for video conferencing, Zoom Phone for cloud-based business telephony, Zoom Team Chat for workplace messaging, and Zoom Rooms for conference-room collaboration.

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