Strs Ohio Trims Holdings in Zoom Communications, Inc. $ZM

Key Points

• Strs Ohio cut its Zoom stake sharply in the fourth quarter, reducing holdings by 77.4% and ending with 6,382 shares worth about $551,000.
• Wall Street sentiment remains mixed: Zoom has an average analyst rating of “Hold” and an average price target of $95.32, though some firms still rate it a Buy.
• Zoom’s latest results showed solid revenue growth but an EPS miss, with quarterly revenue up 5.3% year over year to $1.25 billion while earnings per share came in below estimates at $1.44.

Strs Ohio reduced its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 77.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 6,382 shares of the company's stock after selling 21,901 shares during the quarter. Strs Ohio's holdings in Zoom Communications were worth $551,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in Zoom Communications by 10.5% during 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 bought a new position in Zoom Communications during the third quarter worth $1,238,000. LSV Asset Management lifted its stake in Zoom Communications by 5.0% during 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 acquired a new stake in Zoom Communications in the third quarter worth $1,963,000. Finally, Boston Common Asset Management LLC acquired a new stake in Zoom Communications in the fourth quarter worth $2,163,000. 66.54% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on ZM shares. Argus raised Zoom Communications to a "hold" rating in a research report on Monday, March 9th. Zacks Research lowered Zoom Communications from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. Weiss Ratings raised Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research report on Tuesday, February 24th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $100.00 target price on shares of Zoom Communications in a research report on Friday, March 13th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $95.32.

Zoom Communications Stock Performance

Shares of ZM opened at $109.21 on Friday. The firm has a market capitalization of $32.18 billion, a price-to-earnings ratio of 17.61, a price-to-earnings-growth ratio of 6.25 and a beta of 1.00. Zoom Communications, Inc. has a one year low of $69.15 and a one year high of $109.50. The stock's fifty day moving average is $83.24 and its 200-day moving average is $85.37.

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

Insider Activity at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer directly owned 1,978 shares of the company's stock, valued at approximately $173,312.36. This trade represents a 86.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the transaction, the director directly owned 142,882 shares in the company, valued at $15,228,363.56. This trade represents a 3.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is owned by corporate 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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