Caption Management LLC Invests $5.99 Million in Zoom Communications, Inc. $ZM

Key Points

• Caption Management LLC opened a new position in Zoom Communications, buying 69,435 shares worth about $5.99 million in the fourth quarter.
• Zoom reported better-than-expected quarterly results, with EPS of $1.55 versus estimates of $1.42 and revenue of $1.24 billion, up 5.5% year over year. The company also issued FY 2027 and Q2 2027 guidance.
• Despite solid results, Zoom stock fell 5.1% and insiders have been selling shares, including CEO Eric S. Yuan and Director Santiago Subotovsky, while analysts currently rate the stock a Moderate Buy with a consensus target price of $109.33.

Caption Management LLC bought a new position in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 69,435 shares of the company's stock, valued at approximately $5,992,000.

Other hedge funds also recently modified their holdings of the company. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications during the 4th quarter worth about $26,000. Toth Financial Advisory Corp acquired a new stake in Zoom Communications in the 4th quarter worth about $28,000. Sound Income Strategies LLC raised 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 worth $33,000 after purchasing an additional 200 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its stake in Zoom Communications by 83.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after purchasing an additional 200 shares in the last quarter. Finally, Activest Wealth Management raised its stake in Zoom Communications by 4,318.2% in the 4th quarter. Activest Wealth Management now owns 486 shares of the company's stock worth $42,000 after purchasing an additional 475 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Insider Activity at Zoom Communications

In other Zoom Communications news, CEO Eric S. Yuan sold 12,100 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $111.61, for a total value of $1,350,481.00. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $109.78, for a total transaction of $578,979.72. Following the completion of the sale, the director owned 137,608 shares in the company, valued at $15,106,606.24. This represents a 3.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 156,638 shares of company stock worth $13,900,194. Corporate insiders own 8.83% of the company's stock.

Zoom Communications Stock Down 5.1%

ZM stock opened at $87.39 on Thursday. The firm has a market cap of $25.63 billion, a P/E ratio of 12.83, a P/E/G ratio of 5.11 and a beta of 1.01. The company's 50-day moving average price is $96.53 and its two-hundred day moving average price is $88.90. Zoom Communications, Inc. has a 12 month low of $69.15 and a 12 month high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the prior year, the company earned $1.43 EPS. The firm's quarterly revenue was up 5.5% compared to the same quarter last year. 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. Equities analysts predict that Zoom Communications, Inc. will post 4.06 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ZM. Citizens Jmp reiterated a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Argus upgraded shares of Zoom Communications to a "hold" rating in a research note on Monday, March 9th. Weiss Ratings upgraded shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, May 1st. Finally, Cantor Fitzgerald lifted their price objective on shares of Zoom Communications from $87.00 to $104.00 and gave the stock a "neutral" rating in a research note on Friday, May 22nd. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price 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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