Peak Asset Management LLC Takes Position in Zoom Communications, Inc. $ZM

Key Points

• Peak Asset Management opened a new position in Zoom Communications in the fourth quarter, buying 27,108 shares worth about $2.34 million.
• Insiders sold shares during the quarter, including COO Aparna Bawa and CEO Eric S. Yuan, with total insider selling amounting to about $12.36 million over the last quarter.
• Zoom reported mixed quarterly results: revenue topped estimates at $1.25 billion and rose 5.3% year over year, but EPS came in slightly below expectations at $1.44 versus $1.48 forecast.

Peak Asset Management LLC bought a new stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 27,108 shares of the company's stock, valued at approximately $2,339,000.

A number of other hedge funds also recently added to or reduced their stakes in ZM. NewEdge Advisors LLC lifted its stake in Zoom Communications by 16.8% in the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock worth $591,000 after acquiring an additional 1,153 shares during the period. Intech Investment Management LLC lifted its stake in Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock worth $1,238,000 after acquiring an additional 6,235 shares during the period. Geneos Wealth Management Inc. lifted its stake in Zoom Communications by 82.0% in the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock worth $65,000 after acquiring an additional 397 shares during the period. Sivia Capital Partners LLC purchased a new stake in Zoom Communications in the second quarter worth about $217,000. Finally, Invesco Ltd. lifted its stake in Zoom Communications by 7.0% in the second quarter. Invesco Ltd. now owns 730,207 shares of the company's stock worth $56,942,000 after acquiring an additional 47,749 shares during the period. 66.54% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, COO Aparna Bawa sold 12,886 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $87.62, for a total value 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 represents a 86.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the stock in a transaction that occurred on Monday, April 13th. The stock was 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 trade represents a 65.52% 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. Over the last quarter, insiders have sold 144,329 shares of company stock valued at $12,364,989. 10.78% of the stock is owned by company insiders.

Zoom Communications Stock Performance

ZM stock opened at $100.16 on Monday. The firm has a market cap of $29.51 billion, a price-to-earnings ratio of 16.15, a PEG ratio of 5.73 and a beta of 1.00. The firm has a 50-day simple moving average of $86.46 and a two-hundred day simple moving average of $86.22. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $111.56.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate 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 business's quarterly revenue was up 5.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.41 earnings per share. 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, equities analysts predict that Zoom Communications, Inc. will post 3.94 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on ZM shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $115.00 price objective on shares of Zoom Communications in a research note on Thursday, February 26th. Wall Street Zen downgraded Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Needham & Company LLC reiterated a "buy" rating and issued a $100.00 price target on shares of Zoom Communications in a report on Friday, March 13th. Benchmark cut their price target on Zoom Communications from $115.00 to $110.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Finally, Wolfe Research upgraded Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price target on the stock in a report on Thursday, February 5th. Fourteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Zoom Communications presently has a consensus rating of "Hold" and a consensus target price of $96.57.

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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