Zoom Communications, Inc. $ZM is Avory & Company LLC's 2nd Largest Position

Key Points

• Avory & Company LLC cut its Zoom stake sharply in the first quarter, selling 172,692 shares and reducing holdings by 61.8%. Zoom still remained its second-largest position, making up about 11.1% of the firm’s portfolio.
• Wall Street sentiment remains mostly positive, with analysts assigning Zoom a “Moderate Buy” consensus rating and an average target price of $109.33. Several firms recently raised targets, including Rosenblatt, Benchmark, and Mizuho.
• Zoom reported stronger-than-expected quarterly results, posting EPS of $1.55 versus estimates of $1.42 and revenue of $1.24 billion, up 5.5% year over year. Despite the earnings beat, the stock was trading lower on the day at $84.96.

Avory & Company LLC lowered its holdings in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 61.8% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 106,817 shares of the company's stock after selling 172,692 shares during the quarter. Zoom Communications accounts for about 11.1% of Avory & Company LLC's holdings, making the stock its 2nd biggest position. Avory & Company LLC's holdings in Zoom Communications were worth $8,587,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also made changes to their positions in the company. Allianz Asset Management GmbH boosted its stake in shares of Zoom Communications by 15.6% during the 4th quarter. Allianz Asset Management GmbH now owns 2,112,815 shares of the company's stock worth $182,315,000 after acquiring an additional 285,626 shares in the last quarter. Hsbc Holdings PLC increased its stake in Zoom Communications by 43.6% in the 4th quarter. Hsbc Holdings PLC now owns 422,470 shares of the company's stock valued at $36,460,000 after purchasing an additional 128,174 shares in the last quarter. Sherry Group Inc. acquired a new position in Zoom Communications during the fourth quarter worth $894,000. Boston Common Asset Management LLC purchased a new stake in Zoom Communications during the fourth quarter worth $2,163,000. Finally, Geode Capital Management LLC boosted its position in Zoom Communications by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company's stock worth $445,254,000 after purchasing an additional 152,862 shares in the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ZM shares. Rosenblatt Securities raised their price target on Zoom Communications from $115.00 to $130.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Benchmark increased their price objective on shares of Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Mizuho lifted their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a research report on Friday, May 22nd. Piper Sandler upped their price target on shares of Zoom Communications from $91.00 to $107.00 and gave the company a "neutral" rating in a report on Friday, May 22nd. Finally, Citizens Jmp reiterated a "market perform" rating on shares of Zoom Communications in a research report on Wednesday, May 20th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $109.33.

Insider Activity at Zoom Communications

In related news, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at approximately $2,477,576.44. This represents a 21.79% decrease in their ownership of the stock. The transaction 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric S. Yuan sold 69,923 shares of the stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer owned 36,796 shares in the company, valued at $2,988,571.12. This trade represents a 65.52% decrease in their ownership of the stock. 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 quarter, insiders have sold 159,275 shares of company stock worth $14,137,919. Company insiders own 8.83% of the company's stock.

Zoom Communications Trading Down 2.5%

Shares of ZM stock opened at $84.96 on Tuesday. The company has a market capitalization of $24.91 billion, a price-to-earnings ratio of 12.48, a PEG ratio of 4.81 and a beta of 1.01. The firm has a 50-day moving average price of $96.58 and a 200 day moving average price of $88.83. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm posted $1.43 earnings per share. The company's quarterly revenue was up 5.5% compared to the same quarter last year. 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. As a group, research analysts predict that Zoom Communications, Inc. will post 4.08 earnings per share 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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