Westpac Banking Corp Sells 16,711 Shares of Zoom Communications, Inc. $ZM

Key Points

• Westpac Banking Corp cut its Zoom Communications stake by 68.9% in the first quarter, selling 16,711 shares and leaving it with 7,550 shares worth about $607,000.
• Zoom’s latest earnings beat expectations, with EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion versus $1.22 billion expected. Revenue rose 5.5% year over year.
• Analysts remain broadly positive on the stock, with an overall Moderate Buy consensus and an average target price of $109.33. Multiple firms recently raised price targets, while insiders also continued selling shares over the past 90 days.

Westpac Banking Corp reduced its stake in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 68.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 7,550 shares of the company's stock after selling 16,711 shares during the period. Westpac Banking Corp's holdings in Zoom Communications were worth $607,000 as of its most recent SEC filing.

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

Analyst Ratings Changes

A number of equities research analysts have commented on ZM shares. Benchmark raised their price objective on Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Rosenblatt Securities reaffirmed a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a research report on Thursday. Cantor Fitzgerald increased their target price on Zoom Communications from $87.00 to $104.00 and gave the stock a "neutral" rating in a report on Friday, May 22nd. Jefferies Financial Group increased their target price on Zoom Communications from $105.00 to $118.00 and gave the stock a "buy" rating in a report on Friday, May 22nd. Finally, KeyCorp raised shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a research report on Friday, May 22nd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $109.33.

Zoom Communications Stock Performance

Shares of NASDAQ ZM opened at $84.11 on Friday. The stock has a market cap of $24.66 billion, a price-to-earnings ratio of 12.35, a PEG ratio of 4.60 and a beta of 1.01. Zoom Communications, Inc. has a fifty-two week low of $69.15 and a fifty-two week high of $114.74. The firm's 50-day simple moving average is $93.55 and its 200 day simple moving average is $88.99.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued 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. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The company's revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.43 EPS. 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, sell-side analysts predict that Zoom Communications, Inc. will post 4.21 EPS for the current year.

Insider Activity at Zoom Communications

In related news, CEO Eric S. Yuan sold 12,100 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.60, for a total value of $1,289,860.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the firm's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares in the company, valued at approximately $3,219,041.60. This trade represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 48,517 shares of company stock valued at $5,061,783 over the last 90 days. Insiders own 8.83% of the company's stock.

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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