Legal & General Group Plc Grows Position in Zoom Communications, Inc. $ZM

Key Points

• Legal & General Group Plc increased its Zoom Communications stake by 0.6% in Q4, bringing holdings to 2,016,483 shares valued at about $174 million.
• Zoom posted solid quarterly results, with EPS of $1.55 beating estimates and revenue of $1.24 billion topping expectations; revenue also rose 5.5% year over year.
• Analyst sentiment remains constructive: several firms raised targets or upgraded ratings, and Zoom now carries a Moderate Buy consensus with an average price target of $108.15.

Legal & General Group Plc raised its position in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 0.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,016,483 shares of the company's stock after buying an additional 11,342 shares during the quarter. Legal & General Group Plc owned about 0.68% of Zoom Communications worth $174,002,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in ZM. AQR Capital Management LLC grew its holdings in Zoom Communications by 23.4% during the 3rd quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company's stock valued at $699,357,000 after buying an additional 1,607,253 shares in the last quarter. Two Sigma Investments LP purchased a new position in Zoom Communications during the 3rd quarter valued at approximately $86,709,000. Vanguard Group Inc. grew its holdings in Zoom Communications by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock valued at $2,327,002,000 after buying an additional 1,029,623 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in Zoom Communications by 46.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company's stock valued at $218,282,000 after buying an additional 836,594 shares in the last quarter. Finally, Amundi grew its holdings in Zoom Communications by 87.4% during the 3rd quarter. Amundi now owns 1,637,670 shares of the company's stock valued at $132,700,000 after buying an additional 763,779 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company's stock.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $99.96 on Thursday. The firm's 50 day simple moving average is $90.37 and its 200-day simple moving average is $87.12. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $113.73. The firm has a market cap of $29.46 billion, a PE ratio of 14.68, a price-to-earnings-growth ratio of 5.73 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted 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. 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 earnings per share. The company's revenue was up 5.5% on a year-over-year basis. 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 research analysts predict that Zoom Communications, Inc. will post 3.94 EPS for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares in the company, valued at approximately $173,312.36. This trade represents a 86.69% 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, CEO Eric S. Yuan sold 12,100 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.60, for a total value of $1,289,860.00. 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. Insiders sold a total of 144,329 shares of company stock worth $12,364,989 over the last quarter. Insiders own 11.51% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on ZM. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, May 20th. KeyCorp raised Zoom Communications from an "underweight" rating to a "sector weight" rating in a research note on Friday, May 22nd. Cantor Fitzgerald raised their price objective on Zoom Communications from $87.00 to $104.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Wolfe Research raised Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price objective for the company in a research note on Thursday, February 5th. Finally, Jefferies Financial Group raised their price objective on Zoom Communications from $105.00 to $118.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. Fourteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, Zoom Communications has an average rating of "Moderate Buy" and an average price target of $108.15.

Zoom Communications Company 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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