Rubric Capital Management LP Acquires Shares of 1,001,006 Zoom Communications, Inc. $ZM

Key Points

• Rubric Capital Management acquired 1,001,006 Zoom shares worth approximately $80.5 million, representing a 0.34% stake and about 0.9% of its portfolio. 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; Jefferies raised its target to $118 and assigned a Buy rating.
• Zoom exceeded quarterly expectations, reporting $1.55 in EPS and $1.24 billion in revenue, up 5.5% year over year. Meanwhile, insiders sold 48,517 shares worth approximately $5.1 million over the past three months.

Rubric Capital Management LP bought a new stake in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 1,001,006 shares of the company's stock, valued at approximately $80,471,000. Zoom Communications comprises approximately 0.9% of Rubric Capital Management LP's holdings, making the stock its 25th largest holding. Rubric Capital Management LP owned 0.34% of Zoom Communications at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in ZM. Advocate Investing Services LLC purchased a new position in shares of Zoom Communications in the 4th quarter valued at approximately $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications during the fourth quarter worth $27,000. Toth Financial Advisory Corp acquired a new stake in shares of Zoom Communications during the fourth quarter worth $28,000. Rexford Capital Inc. grew its position in Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after buying an additional 122 shares during the last quarter. Finally, Sound Income Strategies LLC grew its position in Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after buying an additional 200 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Insider Activity

In other news, CEO Eric S. Yuan sold 12,100 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $111.61, for a total transaction of $1,350,481.00. The sale was disclosed in a document filed with the SEC, which is available at 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 that occurred 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 completion of the sale, the chief financial officer owned 35,452 shares in the company, valued at approximately $3,219,041.60. This represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 48,517 shares of company stock worth $5,061,783. Company insiders own 8.83% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on ZM shares. Citizens Jmp restated a "market perform" rating on shares of Zoom Communications in a research report on Wednesday, May 20th. KeyCorp upgraded shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a research note on Friday, May 22nd. Cantor Fitzgerald increased their price target on shares of Zoom Communications from $87.00 to $104.00 and gave the stock a "neutral" rating in a report on Friday, May 22nd. Wells Fargo & Company lifted their price objective on Zoom Communications from $90.00 to $105.00 and gave the company an "equal weight" rating in a report on Friday, May 22nd. Finally, Jefferies Financial Group boosted their target price on Zoom Communications from $105.00 to $118.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $109.33.

Zoom Communications Stock Up 3.7%

Shares of ZM opened at $91.22 on Tuesday. Zoom Communications, Inc. has a 52-week low of $69.15 and a 52-week high of $114.74. The company has a 50-day simple moving average of $93.15 and a 200-day simple moving average of $89.04. The company has a market capitalization of $26.75 billion, a PE ratio of 13.40, a P/E/G ratio of 4.72 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the firm earned $1.43 earnings per share. The firm's revenue 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, research analysts anticipate that Zoom Communications, Inc. will post 4.21 EPS for the current year.

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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