North Dakota State Investment Board Makes New $1.65 Million Investment in Zoom Communications, Inc. $ZM

Key Points

• North Dakota State Investment Board opened a new position in Zoom Communications in the fourth quarter, buying 19,160 shares valued at about $1.65 million.
• Zoom’s latest earnings showed $1.44 EPS, missing estimates, while revenue came in at $1.25 billion and still grew 5.3% year over year.
• Analyst sentiment is mixed: several firms raised or reiterated bullish targets, but the stock’s overall consensus remains “Hold” with a target price of about $97.05.

North Dakota State Investment Board bought a new position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 19,160 shares of the company's stock, valued at approximately $1,653,000.

Several other hedge funds have also added to or reduced their stakes in the stock. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of 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 worth $19,697,000 after purchasing an additional 22,704 shares during the last quarter. Strive Asset Management LLC purchased a new position in shares of Zoom Communications in the third quarter worth $1,238,000. LSV Asset Management raised its stake in shares of Zoom Communications by 5.0% in the third quarter. LSV Asset Management now owns 1,069,440 shares of the company's stock worth $88,229,000 after purchasing an additional 50,579 shares during the last quarter. Krilogy Financial LLC purchased a new position in shares of Zoom Communications in the third quarter worth $1,963,000. Finally, Boston Common Asset Management LLC purchased a new position in shares of Zoom Communications in the fourth quarter worth $2,163,000. 66.54% of the stock is owned by institutional investors.

Zoom Communications Stock Performance

Zoom Communications stock opened at $97.39 on Wednesday. The stock has a market cap of $28.70 billion, a PE ratio of 15.71, a price-to-earnings-growth ratio of 5.66 and a beta of 1.00. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $111.56. The stock has a fifty day moving average of $87.29 and a 200 day moving average of $86.41.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing analysts' consensus estimates of $1.48 by ($0.04). The firm had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The firm's revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the company 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 predict that Zoom Communications, Inc. will post 3.94 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ZM. Wolfe Research upgraded Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price target for the company in a research note on Thursday, February 5th. Rosenblatt Securities restated a "buy" rating and issued a $115.00 price target on shares of Zoom Communications in a research note on Thursday, February 26th. Robert W. Baird boosted their price target on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research note on Tuesday. KeyCorp boosted their price target on Zoom Communications from $69.00 to $74.00 and gave the stock an "underweight" rating in a research note on Thursday, February 26th. Finally, BTIG Research decreased their price target on Zoom Communications from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, February 26th. Fourteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications currently has a consensus rating of "Hold" and a consensus target price of $97.05.

Insider Activity at Zoom Communications

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the sale, the insider owned 141,971 shares in the company, valued at approximately $12,130,002.24. This represents a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the sale, the chief financial officer owned 30,467 shares of the company's stock, valued at approximately $2,477,576.44. This trade represents 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 have sold 144,329 shares of company stock valued at $12,364,989 in the last 90 days. 10.78% of the stock is owned by company insiders.

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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