Handelsbanken Fonder AB Cuts Stock Holdings in Zoom Communications, Inc. $ZM

Key Points

• Handelsbanken Fonder AB cut its Zoom Communications stake by 17.3% in the fourth quarter, selling 165,674 shares and leaving it with 793,836 shares valued at about $68.5 million.
• Zoom reported mixed quarterly results, with EPS of $1.44 missing estimates while revenue of $1.25 billion slightly beat expectations and rose 5.3% year over year.
• Insider selling continued, as CEO Eric S. Yuan and CFO Michelle Chang both sold shares under pre-arranged plans, while analysts currently have a consensus Hold rating with a target price of $96.57.

Handelsbanken Fonder AB lowered its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 17.3% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 793,836 shares of the company's stock after selling 165,674 shares during the quarter. Handelsbanken Fonder AB owned 0.27% of Zoom Communications worth $68,500,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also modified their holdings of ZM. NewEdge Advisors LLC increased its position in shares of Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock worth $591,000 after acquiring an additional 1,153 shares during the period. Intech Investment Management LLC increased its holdings in Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after buying an additional 6,235 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in Zoom Communications by 82.0% in the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after buying an additional 397 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Zoom Communications in the second quarter valued at $217,000. Finally, Invesco Ltd. increased its holdings in Zoom Communications by 7.0% in the second quarter. Invesco Ltd. now owns 730,207 shares of the company's stock valued at $56,942,000 after buying an additional 47,749 shares during the last quarter. Hedge funds and other institutional investors own 66.54% of the company's stock.

Zoom Communications Stock Performance

Shares of ZM stock opened at $98.87 on Tuesday. The stock's 50-day moving average is $86.89 and its two-hundred day moving average is $86.31. The firm has a market cap of $29.13 billion, a price-to-earnings ratio of 15.95, a PEG ratio of 5.73 and a beta of 1.00. Zoom Communications, Inc. has a 1 year low of $69.15 and a 1 year high of $111.56.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.04). The firm had revenue of $1.25 billion for 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%.The business's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the previous year, the business posted $1.41 EPS. 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. As a group, research analysts predict that Zoom Communications, Inc. will post 3.94 EPS for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, CEO Eric S. Yuan sold 69,923 shares of the firm's stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the transaction, the chief executive officer owned 36,796 shares of the company's stock, valued at approximately $2,988,571.12. This trade 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, CFO Michelle Chang sold 8,489 shares of the firm's stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at approximately $2,477,576.44. The trade was a 21.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 144,329 shares of company stock valued at $12,364,989. Corporate insiders own 10.78% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on ZM shares. Benchmark dropped their target price on Zoom Communications from $115.00 to $110.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. KeyCorp increased their target price on Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a report on Thursday, February 26th. Argus raised Zoom Communications to a "hold" rating in a report on Monday, March 9th. Needham & Company LLC reissued a "buy" rating and issued a $100.00 target price on shares of Zoom Communications in a report on Friday, March 13th. Finally, BTIG Research dropped their target price on Zoom Communications from $105.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $96.57.

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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