Vanguard Group Inc. Boosts Position in Zoom Communications, Inc. $ZM

Key Points

• Vanguard raised its Q4 stake in Zoom by 4.0% to 26,967,224 shares—about 9.11% of the company—valued at roughly $2.33 billion.
• Insiders have been net sellers: CEO Eric S. Yuan sold 69,923 shares (~$5.68M) and insiders sold 138,887 shares totaling about $11.59M over the last 90 days, leaving insiders with approximately 10.78% ownership.
• Analyst sentiment is mixed (14 Buys, 13 Holds, 1 Sell) with an average rating of Hold and a $95.32 target; Zoom slightly missed Q results on EPS but beat revenue and issued FY2027 EPS guidance of 5.770–5.810.

Vanguard Group Inc. raised its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 4.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 26,967,224 shares of the company's stock after acquiring an additional 1,029,623 shares during the period. Vanguard Group Inc. owned approximately 9.11% of Zoom Communications worth $2,327,002,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. Toth Financial Advisory Corp acquired a new position in Zoom Communications during the fourth quarter valued at $28,000. Root Financial Partners LLC acquired a new stake in Zoom Communications during the 3rd quarter worth about $33,000. Sound Income Strategies LLC grew its position in Zoom Communications by 94.8% during the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock worth $33,000 after purchasing an additional 200 shares during the period. Quent Capital LLC purchased a new position in shares of Zoom Communications during the 3rd quarter valued at about $34,000. Finally, Cloud Capital Management LLC purchased a new position in shares of Zoom Communications during the 3rd quarter valued at about $42,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages have recently commented on ZM. Citigroup upgraded Zoom Communications from a "neutral" rating to a "buy" rating and upped their target price for the stock from $94.00 to $106.00 in a research note on Monday, January 12th. 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 report on Thursday, February 5th. Wall Street Zen downgraded Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. KeyCorp upped their price objective on Zoom Communications from $69.00 to $74.00 and gave the stock an "underweight" rating in a research report on Thursday, February 26th. Finally, Sanford C. Bernstein dropped their price objective on shares of Zoom Communications from $90.00 to $88.00 and set a "market perform" rating on the stock in a research note on Thursday, February 26th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $95.32.

Insider Activity

In related news, Director Santiago Subotovsky sold 2,643 shares of Zoom Communications stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $87.32, for a total value of $230,786.76. Following the sale, the director owned 150,799 shares of the company's stock, valued at approximately $13,167,768.68. This trade represents a 1.72% decrease in their position. 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, CEO Eric S. Yuan sold 69,923 shares of the business's stock in a transaction 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 sale, the chief executive officer directly owned 36,796 shares of the company's stock, valued at approximately $2,988,571.12. The trade was a 65.52% 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. Over the last ninety days, insiders have sold 138,887 shares of company stock worth $11,590,330. Insiders own 10.78% of the company's stock.

Zoom Communications Stock Up 5.1%

Shares of Zoom Communications stock opened at $95.76 on Thursday. The firm has a market cap of $28.22 billion, a PE ratio of 15.45, a P/E/G ratio of 5.20 and a beta of 0.88. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $97.58. The business has a 50-day moving average price of $81.94 and a 200 day moving average price of $84.62.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (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 analysts' expectations of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the prior 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. On average, sell-side analysts expect that Zoom Communications, Inc. will post 3.94 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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