Wellington Management Group LLP Has $2.62 Million Stock Holdings in Zoom Communications, Inc. $ZM

Key Points

• Wellington Management increased its Zoom Communications position by 65.1% in the second quarter, holding 30,334 shares valued at approximately $2.62 million. Institutional investors own 66.54% of the company.
• Zoom reported quarterly EPS of $1.55, exceeding estimates of $1.48, while revenue rose 4.9% year over year to $1.28 billion. Shares opened at $95.46, down 0.7%.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $112.55, although company insiders have sold 53,518 shares worth about $5.13 million over the past three months.

Wellington Management Group LLP grew its position in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 65.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 30,334 shares of the company's stock after buying an additional 11,964 shares during the period. Wellington Management Group LLP's holdings in Zoom Communications were worth $2,618,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Kestra Advisory Services LLC boosted its position in shares of Zoom Communications by 2.0% in the fourth quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company's stock valued at $512,000 after acquiring an additional 116 shares during the period. 3Chopt Investment Partners LLC increased its position in Zoom Communications by 1.6% during the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company's stock worth $592,000 after acquiring an additional 119 shares during the period. Rexford Capital Inc. raised its stake in Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after purchasing an additional 122 shares in the last quarter. Root Financial Partners LLC raised its stake in Zoom Communications by 33.5% in the 4th quarter. Root Financial Partners LLC now owns 542 shares of the company's stock worth $47,000 after purchasing an additional 136 shares in the last quarter. Finally, Prudential PLC boosted its holdings in Zoom Communications by 5.7% in the 4th quarter. Prudential PLC now owns 3,040 shares of the company's stock valued at $262,000 after purchasing an additional 164 shares during the period. Institutional investors own 66.54% of the company's stock.

Zoom Communications Stock Down 0.7%

Shares of Zoom Communications stock opened at $95.46 on Friday. Zoom Communications, Inc. has a 12-month low of $70.70 and a 12-month high of $114.74. The company has a market capitalization of $27.85 billion, a price-to-earnings ratio of 8.84, a PEG ratio of 4.45 and a beta of 1.04. The firm's 50-day moving average price is $96.67 and its two-hundred day moving average price is $91.77.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same period in the previous year, the company earned $1.53 EPS. The business's revenue for the quarter was up 4.9% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. On average, sell-side analysts expect that Zoom Communications, Inc. will post 4.26 earnings per share for the current year.

Insider Activity

In other Zoom Communications news, CEO Eric Yuan sold 12,100 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $95.34, for a total value of $1,153,614.00. Following the sale, the chief executive officer owned 22,998 shares of the company's stock, valued at approximately $2,192,629.32. This trade represents a 34.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock in a transaction on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the transaction, the insider owned 148,403 shares in the company, valued at approximately $13,650,107.94. The trade was a 4.90% 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. Insiders have sold 53,518 shares of company stock valued at $5,133,728 in the last three months. Company insiders own 8.83% of the company's stock.

Analysts Set New Price Targets

ZM has been the topic of a number of analyst reports. Royal Bank Of Canada restated an "outperform" rating and set a $130.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Robert W. Baird lifted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a research report on Tuesday, May 19th. Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 27th. UBS Group increased their price target on Zoom Communications from $105.00 to $115.00 and gave the stock a "neutral" rating in a research report on Thursday, August 20th. Finally, KeyCorp restated a "sector weight" rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $112.55.

Zoom Communications Profile

Zoom Communications, Inc NASDAQ: ZM is a communications technology company that provides cloud-based tools for video meetings, collaboration and business communications. The company was founded in 2011 by Eric Yuan and is headquartered in San Jose, California. It was previously known as Zoom Video Communications before adopting the Zoom Communications name.

Its product portfolio includes Zoom Meetings for video conferencing, Zoom Phone for cloud-based business telephony, Zoom Team Chat for workplace messaging, and Zoom Rooms for conference-room collaboration.

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