Kerrisdale Advisers LLC Decreases Stock Holdings in Zoom Communications, Inc. $ZM

Key Points

• Kerrisdale Advisers cut its Zoom Communications stake by 31.7% in the second quarter, selling 14,780 shares and retaining 31,869 shares worth approximately $2.75 million. Institutional investors collectively own 66.54% of Zoom.
• Zoom exceeded quarterly expectations with adjusted EPS of $1.55 on $1.28 billion in revenue, up 4.9% year over year. Enterprise revenue grew 7.8%, though online revenue rose just 0.6% and weaker-than-expected third-quarter guidance raised growth concerns.
• Analyst sentiment remains generally positive but mixed: Zoom has a “Moderate Buy” consensus rating and an average price target of $112.55, while some firms maintained neutral or market-perform views.

Kerrisdale Advisers LLC reduced its holdings in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 31.7% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 31,869 shares of the company's stock after selling 14,780 shares during the period. Kerrisdale Advisers LLC's holdings in Zoom Communications were worth $2,751,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the business. Headlands Technologies LLC bought a new stake in shares of Zoom Communications in the 2nd quarter valued at approximately $1,771,000. Wedbush Securities Inc. purchased a new position in shares of Zoom Communications during the second quarter valued at approximately $256,000. Wellington Management Group LLP boosted its position in shares of Zoom Communications by 65.1% during the second quarter. Wellington Management Group LLP now owns 30,334 shares of the company's stock valued at $2,618,000 after buying an additional 11,964 shares during the period. Public Employees Retirement System of Ohio bought a new position in shares of Zoom Communications during the second quarter valued at approximately $7,048,000. Finally, Ancora Advisors LLC purchased a new stake in shares of Zoom Communications in the second quarter worth approximately $498,000. Institutional investors own 66.54% of the company's stock.

Analyst Ratings Changes

ZM has been the topic of a number of recent analyst reports. Mizuho increased their target price on Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday, May 22nd. Piper Sandler upped their target price on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a research note on Friday, May 22nd. KeyCorp restated a "sector weight" rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Citigroup boosted their price objective on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Finally, Morgan Stanley boosted their target price on shares of Zoom Communications from $105.00 to $107.00 and gave the stock an "equal weight" rating in a report on Wednesday. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $112.55.

Insider Buying and Selling at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the sale, the insider owned 148,403 shares in the company, valued at $13,650,107.94. This represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 on Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer directly owned 35,452 shares of the company's stock, valued at approximately $3,219,041.60. This trade represents a 19.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 50,881 shares of company stock valued at $5,075,782 over the last quarter. Insiders own 8.83% of the company's stock.

Key Stories Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year, and adjusted EPS of $1.55, exceeding analyst estimates of $1.27 billion and $1.48, respectively. Enterprise revenue grew 7.8% to $787.5 million, while remaining performance obligations increased 14%, indicating solid demand from larger customers. Zoom Communications Q2 2027 Earnings Call Summary
• Positive Sentiment: ZM recently moved above its 50-day moving average, a technical development that can signal improving short-term momentum and may attract additional technical buyers. Zoom Communications Breaks Above 50-Day Moving Average
• Positive Sentiment: Some analysts remain constructive: Needham reiterated a “Buy” rating, while another analysis cited Zoom’s cash position, 24.6% GAAP operating margin and potential value from its Anthropic investment as reasons for optimism. Needham Reiterates Buy Rating
• Neutral Sentiment: Analyst views remain mixed. Citizens JMP assigned a “Market Perform” rating and KeyCorp reaffirmed “Sector Weight,” suggesting the earnings beat may already be reflected in the stock’s valuation. Citizens JMP Market Perform Rating
• Negative Sentiment: Growth remains uneven: online revenue increased only 0.6% to $489.7 million, and management’s third-quarter profit outlook was weaker than expected. The cautious guidance overshadowed the quarterly earnings beat and raised concerns about Zoom’s ability to accelerate companywide growth through AI and enterprise products. Zoom Enterprise and Online Revenue Analysis

Zoom Communications Stock Performance

Zoom Communications stock opened at $98.43 on Monday. The business's 50-day simple moving average is $94.65 and its two-hundred day simple moving average is $91.41. The company has a market cap of $28.86 billion, a PE ratio of 9.11, a PEG ratio of 5.01 and a beta of 1.00. Zoom Communications, Inc. has a fifty-two week low of $70.70 and a fifty-two week high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same period last year, the business posted $1.53 earnings per share. The company's revenue for the quarter was up 4.9% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. As a group, analysts predict that Zoom Communications, Inc. will post 4.26 EPS for the current fiscal year.

Zoom Communications Profile

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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