Convergence Investment Partners LLC Grows Position in Zoom Communications, Inc. $ZM

Key Points

• Convergence Investment Partners increased its Zoom stake by 74.3% in the fourth quarter, buying 16,606 additional shares and bringing its total holding to 38,946 shares worth about $3.36 million.
• Zoom shares were up 2.0% to $100.16, with the stock trading near its 12-month high of $111.56 and well above its 12-month low of $69.15.
• Analysts remain mixed on Zoom: the consensus rating is Hold with a $96.57 target price, even though several firms still rate it Buy and recent insider sales have continued.

Convergence Investment Partners LLC boosted its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 74.3% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 38,946 shares of the company's stock after purchasing an additional 16,606 shares during the period. Convergence Investment Partners LLC's holdings in Zoom Communications were worth $3,361,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Toth Financial Advisory Corp purchased a new position in Zoom Communications during the fourth quarter valued at $28,000. Root Financial Partners LLC purchased a new position in Zoom Communications during the third quarter valued at $33,000. Sound Income Strategies LLC lifted its position in Zoom Communications by 94.8% during the fourth quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after purchasing an additional 200 shares in the last quarter. Quent Capital LLC purchased a new position in Zoom Communications during the third quarter valued at $34,000. Finally, Cloud Capital Management LLC purchased a new position in shares of Zoom Communications in the third quarter valued at about $42,000. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Zoom Communications Trading Up 2.0%

NASDAQ:ZM opened at $100.16 on Friday. The company has a market capitalization of $29.51 billion, a P/E ratio of 16.15, a P/E/G ratio of 5.62 and a beta of 1.00. Zoom Communications, Inc. has a 12 month low of $69.15 and a 12 month high of $111.56. The business's 50-day moving average is $86.46 and its 200 day moving average is $86.21.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing analysts' consensus estimates of $1.48 by ($0.04). The firm had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.Zoom Communications's quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. On average, research analysts forecast that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Analysts Set New Price Targets

ZM has been the topic of several research analyst reports. Benchmark lowered their price objective on Zoom Communications from $115.00 to $110.00 and set a "buy" rating on the stock in a research report on Tuesday, February 24th. Needham & Company LLC restated a "buy" rating and issued a $100.00 price objective on shares of Zoom Communications in a research report on Friday, March 13th. Citigroup boosted their price objective on Zoom Communications from $106.00 to $122.00 and gave the company a "buy" rating in a research report on Friday. BTIG Research lowered their price objective on Zoom Communications from $105.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Finally, KeyCorp boosted their price objective on Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a research report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $96.57.

Insider Buying and Selling

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the business's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total value of $653,188.80. Following the sale, the insider directly owned 141,971 shares in the company, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $106.60, for a total value of $1,289,860.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 144,329 shares of company stock valued at $12,364,989 in the last ninety days. Company insiders own 11.51% of the company's stock.

About Zoom Communications

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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