KBC Group NV Buys 487,384 Shares of Zoom Communications, Inc. $ZM

Key Points

• KBC Group NV increased its Zoom stake by 69.1% in the first quarter, buying 487,384 additional shares and bringing its total holding to 1,193,027 shares worth about $95.9 million.
• Zoom reported better-than-expected quarterly results, with EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion, up 5.5% year over year.
• Analysts remain mixed but generally positive on the stock: Zoom has a Moderate Buy consensus rating and a consensus price target of $109.33, while several insiders recently sold shares under pre-arranged trading plans.

KBC Group NV boosted its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 69.1% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,193,027 shares of the company's stock after purchasing an additional 487,384 shares during the period. KBC Group NV owned 0.40% of Zoom Communications worth $95,907,000 as of its most recent filing with the SEC.

A number of other hedge funds have also recently bought and sold shares of ZM. Advocate Investing Services LLC bought a new stake in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications in the 4th quarter valued at approximately $27,000. Toth Financial Advisory Corp bought a new position in shares of Zoom Communications in the fourth quarter valued at $28,000. Rexford Capital Inc. grew its stake in shares of Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after buying an additional 122 shares in the last quarter. Finally, Sound Income Strategies LLC increased its holdings in Zoom Communications by 94.8% during the fourth quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock worth $33,000 after buying an additional 200 shares during the last quarter. 66.54% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

ZM has been the topic of several analyst reports. Wells Fargo & Company upped their price target on shares of Zoom Communications from $90.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Weiss Ratings lowered shares of Zoom Communications from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, June 30th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $130.00 target price on shares of Zoom Communications in a report on Tuesday, June 30th. Morgan Stanley raised their target price on shares of Zoom Communications from $92.00 to $105.00 and gave the company an "equal weight" rating in a research note on Friday, May 22nd. Finally, Piper Sandler boosted their price target on Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $109.33.

Insider Activity

In related news, Director Santiago Subotovsky sold 2,637 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $90.15, for a total value of $237,725.55. Following the completion of the sale, the director directly owned 138,554 shares in the company, valued at approximately $12,490,643.10. The trade was a 1.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares in the company, valued at $3,219,041.60. This represents a 19.32% 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. Over the last ninety days, insiders sold 48,517 shares of company stock worth $5,061,783. Corporate insiders own 8.83% of the company's stock.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $91.13 on Monday. Zoom Communications, Inc. has a 52 week low of $69.15 and a 52 week high of $114.74. The firm has a market cap of $26.72 billion, a price-to-earnings ratio of 13.38, a P/E/G ratio of 4.86 and a beta of 1.01. The firm's 50-day simple moving average is $94.75 and its 200 day simple moving average is $88.93.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the firm posted $1.43 EPS. The business's revenue for the quarter 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. Sell-side analysts anticipate that Zoom Communications, Inc. will post 4.23 EPS for the current 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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