Pacer Advisors Inc. Grows Stock Position in Zoom Communications, Inc. $ZM

Key Points

• Pacer Advisors increased its Zoom position by 10.8% in the first quarter, adding 253,181 shares to hold 2.60 million shares worth approximately $208.7 million. Institutional investors collectively own 66.54% of Zoom.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $109.33; several firms recently raised their targets to between $105 and $130.
• Zoom exceeded quarterly expectations with adjusted EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion, up 5.5% year over year. The stock opened at $96.07, while executives reported recent sales conducted under pre-arranged plans.

Pacer Advisors Inc. lifted its position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 10.8% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,595,840 shares of the company's stock after acquiring an additional 253,181 shares during the period. Pacer Advisors Inc. owned 0.89% of Zoom Communications worth $208,680,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently made changes to their positions in ZM. Advocate Investing Services LLC acquired a new stake in Zoom Communications during the 4th quarter worth $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications in the fourth quarter valued at about $27,000. Toth Financial Advisory Corp acquired a new stake in shares of Zoom Communications in the fourth quarter valued at about $28,000. Rexford Capital Inc. lifted its stake in shares of Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after buying an additional 122 shares in the last quarter. Finally, Sound Income Strategies LLC lifted its stake in shares of Zoom Communications by 94.8% in the fourth quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock worth $33,000 after buying an additional 200 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on ZM shares. BTIG Research boosted their price target on shares of Zoom Communications from $100.00 to $125.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Wells Fargo & Company increased their price objective on shares of Zoom Communications from $90.00 to $105.00 and gave the company an "equal weight" rating in a report on Friday, May 22nd. Citigroup raised their target price on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Citizens Jmp restated a "market perform" rating on shares of Zoom Communications in a report on Wednesday, May 20th. Finally, Royal Bank Of Canada restated an "outperform" rating and issued a $130.00 price target on shares of Zoom Communications in a research report on Tuesday, June 30th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $109.33.

Insider Buying and Selling

In related news, CEO Eric S. Yuan sold 12,100 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $111.61, for a total value of $1,350,481.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the firm's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares of the company's stock, valued at approximately $3,219,041.60. This trade represents a 19.32% 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. Over the last three months, insiders sold 28,500 shares of company stock worth $2,937,987. Company insiders own 8.83% of the company's stock.

Zoom Communications Stock Performance

Zoom Communications stock opened at $96.07 on Monday. Zoom Communications, Inc. has a 12-month low of $69.15 and a 12-month high of $114.74. The stock has a market cap of $28.17 billion, a P/E ratio of 14.11, a PEG ratio of 5.15 and a beta of 1.01. The company has a 50-day moving average price of $92.61 and a 200 day moving average price of $89.24.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping analysts' consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm earned $1.43 earnings per share. Zoom Communications's quarterly revenue was up 5.5% compared to the same quarter last year. 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. As a group, analysts forecast that Zoom Communications, Inc. will post 4.21 EPS for the current year.

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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