Envestnet Portfolio Solutions Inc. Makes New Investment in Zoom Communications, Inc. $ZM

Key Points

• Envestnet Portfolio Solutions Inc. has acquired a new position in Zoom Communications, purchasing 3,220 shares valued at approximately $251,000.
• Zoom Communications reported earnings of $0.99 per share, significantly missing analysts' estimates of $1.38 but achieving revenue of $1.22 billion, slightly above expectations.
• Institutional investors and hedge funds own 66.54% of Zoom Communications' stock, indicating strong institutional interest in the company.

Envestnet Portfolio Solutions Inc. purchased a new position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 3,220 shares of the company's stock, valued at approximately $251,000.

A number of other hedge funds have also made changes to their positions in ZM. Wayfinding Financial LLC bought a new position in shares of Zoom Communications in the 1st quarter valued at approximately $25,000. SouthState Corp acquired a new position in Zoom Communications during the first quarter valued at approximately $25,000. REAP Financial Group LLC raised its position in shares of Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company's stock valued at $28,000 after purchasing an additional 229 shares during the period. GKV Capital Management Co. Inc. acquired a new stake in shares of Zoom Communications in the first quarter worth $31,000. Finally, Brooklyn Investment Group boosted its holdings in shares of Zoom Communications by 277.8% during the 1st quarter. Brooklyn Investment Group now owns 442 shares of the company's stock worth $33,000 after buying an additional 325 shares during the period. Institutional investors and hedge funds own 66.54% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Citigroup raised their price objective on shares of Zoom Communications from $84.00 to $85.00 and gave the stock a "neutral" rating in a research note on Monday, August 25th. Dbs Bank upgraded Zoom Communications to a "moderate buy" rating in a research report on Tuesday, September 16th. Rosenblatt Securities restated a "buy" rating and issued a $110.00 price target on shares of Zoom Communications in a research report on Thursday, September 18th. Mizuho raised their price target on Zoom Communications from $95.00 to $100.00 and gave the company an "outperform" rating in a report on Tuesday, August 26th. Finally, KeyCorp cut their price objective on Zoom Communications from $73.00 to $69.00 and set an "underweight" rating for the company in a research report on Friday, August 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Zoom Communications has a consensus rating of "Hold" and a consensus target price of $91.74.

Zoom Communications Stock Up 1.8%

Zoom Communications stock opened at $84.28 on Friday. The business's 50-day simple moving average is $81.69 and its 200 day simple moving average is $78.25. The stock has a market cap of $25.50 billion, a price-to-earnings ratio of 22.24, a P/E/G ratio of 11.30 and a beta of 0.78. Zoom Communications, Inc. has a 12-month low of $64.41 and a 12-month high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its earnings results on Thursday, August 21st. The company reported $0.99 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.39). The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.20 billion. Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. The business's revenue for the quarter was up 4.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.39 earnings per share. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. As a group, sell-side analysts expect that Zoom Communications, Inc. will post 2.93 EPS for the current year.

Insider Transactions at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,660 shares of the stock in a transaction on Friday, October 10th. The stock was sold at an average price of $82.00, for a total value of $628,120.00. Following the transaction, the insider owned 132,795 shares of the company's stock, valued at $10,889,190. This represents a 5.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Eric S. Yuan sold 73,383 shares of the firm's stock in a transaction on Wednesday, October 22nd. The stock was sold at an average price of $82.65, for a total value of $6,065,104.95. The disclosure for this sale can be found here. In the last quarter, insiders sold 245,617 shares of company stock valued at $20,154,365. 11.51% of the stock is currently owned by company insiders.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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