Geode Capital Management LLC Acquires 152,862 Shares of Zoom Communications, Inc. $ZM

Key Points

• Geode Capital Management increased its Zoom stake by 3.1% in the fourth quarter, adding 152,862 shares to bring its total to 5.14 million shares worth about $445.3 million.
• Several other institutional investors also adjusted positions in Zoom, and 66.54% of the stock is owned by institutions, indicating strong institutional interest.
• Zoom’s recent earnings topped expectations, with EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion, while analysts currently rate the stock Moderate Buy with a consensus target price of $108.15.

Geode Capital Management LLC increased its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 3.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,139,583 shares of the company's stock after buying an additional 152,862 shares during the period. Geode Capital Management LLC owned 1.74% of Zoom Communications worth $445,254,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of ZM. Steel Grove Capital Advisors LLC acquired a new position in Zoom Communications during the fourth quarter valued at approximately $208,000. Kestra Investment Management LLC grew its holdings in Zoom Communications by 4.5% during the fourth quarter. Kestra Investment Management LLC now owns 9,534 shares of the company's stock valued at $823,000 after purchasing an additional 409 shares during the period. Allstate Corp grew its holdings in Zoom Communications by 122.3% during the fourth quarter. Allstate Corp now owns 20,566 shares of the company's stock valued at $1,775,000 after purchasing an additional 11,313 shares during the period. Fisher Asset Management LLC acquired a new position in Zoom Communications during the fourth quarter valued at approximately $235,000. Finally, Clearstead Advisors LLC grew its holdings in Zoom Communications by 7.5% during the fourth quarter. Clearstead Advisors LLC now owns 194,711 shares of the company's stock valued at $16,802,000 after purchasing an additional 13,621 shares during the period. 66.54% of the stock is owned by institutional investors.

Insider Buying and Selling at Zoom Communications

In related news, CEO Eric S. Yuan sold 69,923 shares of the stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the transaction, the insider owned 141,971 shares of the company's stock, valued at $12,130,002.24. The trade was a 5.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 in the last three months. 10.78% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. KeyCorp upgraded shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday, May 22nd. Wolfe Research upgraded shares of Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price objective for the company in a report on Thursday, February 5th. Jefferies Financial Group upped their price target on shares of Zoom Communications from $105.00 to $118.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Benchmark upped their price target on shares of Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Finally, Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Fourteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, Zoom Communications currently has a consensus rating of "Moderate Buy" and a consensus target price of $108.15.

Zoom Communications Price Performance

Zoom Communications stock opened at $101.59 on Monday. The stock has a market capitalization of $29.79 billion, a PE ratio of 14.92, a price-to-earnings-growth ratio of 5.79 and a beta of 1.01. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $113.73. The company has a 50 day moving average of $91.36 and a 200-day moving average of $87.38.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. The company had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business's quarterly revenue was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.43 earnings per share. 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 anticipate that Zoom Communications, Inc. will post 3.96 EPS for the current fiscal year.

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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