Lecap Asset Management Ltd. Trims Stake in Zoom Communications, Inc. $ZM

Key Points

• Lecap Asset Management reduced its stake in Zoom by 67.5% in Q4, selling 17,604 shares and finishing the quarter with 8,473 shares valued at about $731,000.
• There has been notable insider selling recently — directors and the CFO sold shares (the CFO's 8,489‑share sale was executed under a pre‑arranged 10b5‑1 plan), insiders dumped 120,970 shares (~$10.02M) in the past three months, and the CEO sold roughly 85k shares in mid‑April.
• Analyst sentiment is mixed with a consensus rating of "Hold" (14 Buys, 13 Holds, 1 Sell) and a $95.32 target; Zoom slightly missed EPS ($1.44 vs. $1.48) while beating revenue at $1.25B, and the stock trades near $88 with a market cap of about $25.9B.

Lecap Asset Management Ltd. lowered its position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 67.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 8,473 shares of the company's stock after selling 17,604 shares during the quarter. Lecap Asset Management Ltd.'s holdings in Zoom Communications were worth $731,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Toth Financial Advisory Corp purchased a new position in Zoom Communications during the fourth quarter worth about $28,000. Root Financial Partners LLC bought a new position in Zoom Communications in the 3rd quarter worth about $33,000. Sound Income Strategies LLC raised its holdings in shares of Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after acquiring an additional 200 shares in the last quarter. Quent Capital LLC purchased a new stake in shares of Zoom Communications in the 3rd quarter valued at about $34,000. Finally, Cloud Capital Management LLC bought a new stake in shares of Zoom Communications during the 3rd quarter valued at about $42,000. Hedge funds and other institutional investors own 66.54% of the company's stock.

Insider Activity

In other Zoom Communications news, Director Santiago Subotovsky sold 2,475 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $77.42, for a total value of $191,614.50. Following the sale, the director owned 153,442 shares of the company's stock, valued at $11,879,479.64. This trade represents a 1.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer owned 30,467 shares in the company, valued at $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. Insiders sold 120,970 shares of company stock valued at $10,021,951 in the last three months. Corporate insiders own 10.78% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on ZM. Zacks Research lowered Zoom Communications from a "strong-buy" rating to a "hold" rating in a report on Friday, February 13th. Rosenblatt Securities reiterated a "buy" rating and set a $115.00 target price on shares of Zoom Communications in a research report on Thursday, February 26th. Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Wolfe Research raised shares of Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price target on the stock in a report on Thursday, February 5th. Finally, BTIG Research lowered their price objective on shares of Zoom Communications from $105.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $95.32.

Zoom Communications Price Performance

ZM opened at $88.02 on Monday. The stock's 50 day simple moving average is $82.07 and its 200 day simple moving average is $84.04. The firm has a market cap of $25.94 billion, a price-to-earnings ratio of 14.20, a PEG ratio of 5.04 and a beta of 0.88. Zoom Communications, Inc. has a 1 year low of $69.15 and a 1 year high of $97.58.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The business's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the firm 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, sell-side analysts anticipate that Zoom Communications, Inc. will post 2.93 EPS for the current year.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: AI rebrand and renewed valuation interest — Zoom’s repositioning as an “AI‑first” work platform has pushed investors to revisit its growth profile and valuation, supporting recent share‑price momentum. Assessing Zoom Communications (ZM) Valuation After Its AI Rebrand And Recent Share Price Momentum
• Positive Sentiment: Senior product hire signals product roadmap push — Markets reacted positively after Zoom named a former Microsoft executive as chief product officer, a hire that investors view as strengthening AI/product execution. Zoom rises after appointing former Microsoft exec as chief product officer
• Positive Sentiment: Strategic assets and institutional interest — Coverage points to Zoom’s cash position and strategic stakes (e.g., Anthropic exposure) and several institutions increasing holdings, which can support a higher multiple if execution continues. Zoom’s Anthropic Stake and Huge Cash Pile Could Change the Story
• Neutral Sentiment: Analyst/valuation debate continues — Multiple recent writeups ask whether the post‑pandemic price reset is complete or if fundamentals still argue for further repricing; these analyses create mixed near‑term sentiment rather than a clear directional push. Is It Time To Reassess Zoom Communications (ZM) After Its Post Pandemic Price Reset?
• Neutral Sentiment: Retail/institutional attention rising — Zacks and other trackers note heavy investor searches and elevated interest, which can amplify moves but is not a directional fundamental on its own. Investors Heavily Search Zoom Communications, Inc. (ZM): Here is What You Need to Know
• Negative Sentiment: Large CEO stock sales — CEO Eric Yuan sold sizable blocks of shares in mid‑April (multiple filings totaling ~85k shares across trades), which can weigh on sentiment despite disclosures that many trades were executed under pre‑arranged 10b5‑1 plans. Zoom Communications NASDAQ: ZM CEO Eric Yuan Sells 15,273 Shares
• Negative Sentiment: Recent short‑term volatility/weak sessions — Coverage noted a pullback in the prior session, highlighting that momentum remains fragile and the stock can swing on sentiment and headline flow. Zoom Communications (ZM) Stock Declines While Market Improves: Some Information for Investors

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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