Norges Bank Takes $509.79 Million Position in Zoom Communications, Inc. $ZM

Key Points

• Norges Bank bought a new stake in Zoom Communications during the fourth quarter, acquiring 5.9 million shares valued at about $509.8 million. The position represented roughly 2% of Zoom’s stock based on its latest filing.
• Analyst sentiment has improved, with several firms raising ratings and price targets; the stock now carries a Moderate Buy consensus and an average price target of $108.15.
• Zoom posted solid quarterly results, reporting $1.55 EPS on $1.24 billion in revenue, both above estimates, while revenue rose 5.5% year over year. Despite that, insiders have been sellers, including CEO Eric Yuan and COO Aparna Bawa, who both reduced their holdings significantly.

Norges Bank bought a new stake in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 5,907,844 shares of the company's stock, valued at approximately $509,788,000. Norges Bank owned approximately 2.00% of Zoom Communications as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also made changes to their positions in the company. New York State Teachers Retirement System raised its position in shares of Zoom Communications by 0.5% during the 4th quarter. New York State Teachers Retirement System now owns 24,263 shares of the company's stock valued at $2,094,000 after acquiring an additional 123 shares in the last quarter. MAI Capital Management raised its stake in Zoom Communications by 34.7% during the third quarter. MAI Capital Management now owns 579 shares of the company's stock worth $48,000 after acquiring an additional 149 shares during the period. Harrington Investments INC raised its stake in Zoom Communications by 1.1% during the fourth quarter. Harrington Investments INC now owns 16,174 shares of the company's stock worth $1,396,000 after acquiring an additional 169 shares during the period. Brookstone Capital Management raised its stake in Zoom Communications by 2.2% during the fourth quarter. Brookstone Capital Management now owns 8,024 shares of the company's stock worth $692,000 after acquiring an additional 170 shares during the period. Finally, Moran Wealth Management LLC raised its stake in Zoom Communications by 0.5% during the fourth quarter. Moran Wealth Management LLC now owns 36,232 shares of the company's stock worth $3,126,000 after acquiring an additional 177 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

ZM has been the topic of several research reports. KeyCorp upgraded shares of Zoom Communications from an "underweight" rating to a "sector weight" 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 target price on the stock in a research report on Thursday, February 5th. Benchmark upped their price target on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. Sanford C. Bernstein lowered their price target on shares of Zoom Communications from $90.00 to $88.00 and set a "market perform" rating for the company in a research report on Thursday, February 26th. Finally, Robert W. Baird upped their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. Fourteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $108.15.

Insider Buying and Selling at Zoom Communications

In related news, CEO Eric S. Yuan sold 69,923 shares of the firm's stock in a transaction that occurred 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 transaction, the chief executive officer owned 36,796 shares in the company, valued at $2,988,571.12. This trade represents a 65.52% 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, COO Aparna Bawa sold 12,886 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The shares were 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 $173,312.36. This represents a 86.69% 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. Over the last ninety days, insiders have sold 144,329 shares of company stock valued at $12,364,989. 10.78% of the stock is currently owned by company insiders.

Zoom Communications Stock Performance

Shares of ZM opened at $101.59 on Monday. The firm has a market capitalization of $29.79 billion, a price-to-earnings ratio of 14.92, a price-to-earnings-growth ratio of 5.79 and a beta of 1.01. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $113.73. The stock's fifty day moving average is $91.36 and its 200-day moving average is $87.38.

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, beating analysts' consensus estimates of $1.42 by $0.13. The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The company's quarterly revenue was up 5.5% compared to the same quarter last year. During the same period last year, the company earned $1.43 earnings per share. 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. Analysts forecast that Zoom Communications, Inc. will post 3.96 EPS for the current fiscal 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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