Nano Cap New Millennium Growth Fund L P Takes $1.36 Million Position in Zoom Communications, Inc. $ZM

Key Points

• Nano Cap New Millennium Growth Fund L P initiated a new position in Zoom Communications during the fourth quarter, buying 15,750 shares worth about $1.36 million. The stake now represents 1.2% of the fund’s portfolio.
• Zoom’s latest quarterly results beat expectations, with EPS of $1.55 versus the $1.41 estimate and revenue of $1.24 billion topping forecasts. The company also raised its guidance, citing stronger demand for AI-powered features.
• Analyst sentiment remains mixed but constructive overall: Zoom has a Moderate Buy consensus rating and a target price of $98.25. Institutional ownership is high at 66.54%, while insiders have recently sold shares under pre-arranged trading plans.

Nano Cap New Millennium Growth Fund L P purchased a new stake in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 15,750 shares of the company's stock, valued at approximately $1,359,000. Zoom Communications accounts for 1.2% of Nano Cap New Millennium Growth Fund L P's investment portfolio, making the stock its 22nd biggest position.

Several other hedge funds and other institutional investors have also bought and sold shares of ZM. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Zoom Communications by 10.5% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company's stock valued at $19,697,000 after acquiring an additional 22,704 shares during the period. Strive Asset Management LLC acquired a new position in Zoom Communications in the third quarter valued at about $1,238,000. LSV Asset Management grew its stake in Zoom Communications by 5.0% in the third quarter. LSV Asset Management now owns 1,069,440 shares of the company's stock valued at $88,229,000 after acquiring an additional 50,579 shares during the period. Krilogy Financial LLC acquired a new position in Zoom Communications in the third quarter valued at about $1,963,000. Finally, Sherry Group Inc. acquired a new position in Zoom Communications in the fourth quarter valued at about $894,000. Institutional investors own 66.54% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. KeyCorp increased their price objective on shares of Zoom Communications from $69.00 to $74.00 and gave the stock an "underweight" rating in a research report on Thursday, February 26th. Zacks Research downgraded shares of Zoom Communications from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. Benchmark increased their price objective on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. Fourteen equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $98.25.

Zoom Communications Price Performance

Shares of NASDAQ:ZM opened at $96.75 on Friday. The company's 50-day moving average price is $88.14 and its two-hundred day moving average price is $86.59. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $111.56. The stock has a market capitalization of $28.51 billion, a PE ratio of 15.60, a price-to-earnings-growth ratio of 5.69 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.41 by $0.14. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The firm had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the firm posted $1.43 EPS. The company's revenue for the quarter 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. On average, analysts anticipate that Zoom Communications, Inc. will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In related news, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction dated 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 completion of 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the company's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. 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 have sold a total of 144,329 shares of company stock valued at $12,364,989 in the last three months. Corporate insiders own 11.51% of the company's stock.

More Zoom Communications News

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

• Positive Sentiment: Zoom reported Q1 earnings of $1.55 per share, beating Wall Street’s $1.41 estimate, while revenue of $1.24 billion also topped expectations. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised annual revenue and profit forecasts, with management pointing to stronger demand for AI-powered features as a growth driver. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue grew 7.2% year over year, and Zoom’s enterprise net dollar expansion rate improved to 99%, suggesting better customer retention and spending trends. Zoom Communications Reports Financial Results for the First Quarter of Fiscal Year 2027
• Positive Sentiment: Zoom also reported wider margins and continued share repurchases, which support profitability and shareholder returns. Zoom Communications Reports Financial Results for the First Quarter of Fiscal Year 2027
• Neutral Sentiment: Benchmark raised its price target on Zoom to $121 from $115 and kept a buy rating, reflecting a more constructive outlook from analysts. Benchmark raises price target on Zoom

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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