Zoom Communications, Inc. $ZM Position Boosted by T. Rowe Price Investment Management Inc.

Key Points

• T. Rowe Price Investment Management increased its Zoom Communications stake by 7.9% in the fourth quarter, ending with 4.64 million shares valued at about $400.2 million.
• Zoom reported better-than-expected quarterly results, posting EPS of $1.55 versus estimates of $1.42 and revenue of $1.24 billion versus $1.22 billion expected. Revenue rose 5.5% year over year, and the company issued FY 2027 guidance of $5.96 to $6.00 EPS.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $109.33. Several firms recently raised targets, including Citigroup to $126 and Robert W. Baird and Morgan Stanley to $105.

T. Rowe Price Investment Management Inc. boosted its holdings in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 7.9% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 4,637,903 shares of the company's stock after acquiring an additional 341,104 shares during the quarter. T. Rowe Price Investment Management Inc. owned 1.57% of Zoom Communications worth $400,205,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. Advocate Investing Services LLC bought a new stake in shares of Zoom Communications during the fourth quarter valued at about $26,000. Strive Financial Group LLC bought a new position 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 valued at about $28,000. Sound Income Strategies LLC increased its stake in Zoom Communications by 94.8% during the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after buying an additional 200 shares during the period. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA raised its position in shares of Zoom Communications by 83.3% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after buying an additional 200 shares in the last quarter. Institutional investors own 66.54% of the company's stock.

Zoom Communications Price Performance

Shares of ZM opened at $86.36 on Friday. The firm's 50 day moving average is $96.58 and its 200-day moving average is $88.91. Zoom Communications, Inc. has a 12-month low of $69.15 and a 12-month high of $114.74. The stock has a market capitalization of $25.32 billion, a P/E ratio of 12.68, a P/E/G ratio of 4.85 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.42 by $0.13. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business's quarterly revenue was up 5.5% on a year-over-year basis. During the same period in the prior year, the business earned $1.43 earnings per share. 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, equities research analysts forecast that Zoom Communications, Inc. will post 4.06 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Robert W. Baird boosted their target price on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Morgan Stanley upped their target price on Zoom Communications from $92.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Wall Street Zen lowered Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Finally, Citigroup lifted their price target on Zoom Communications from $122.00 to $126.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Fifteen equities research 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 a consensus rating of "Moderate Buy" and a consensus price target of $109.33.

Insiders Place Their Bets

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total value of $653,188.80. Following the completion of the transaction, the insider owned 141,971 shares in the company, valued at $12,130,002.24. This trade represents a 5.11% decrease in their position. 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. Also, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $87.62, for a total value of $1,129,071.32. Following the completion of the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at $173,312.36. This represents a 86.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 156,638 shares of company stock worth $13,900,194. Corporate insiders own 8.83% of the company's stock.

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.

Want to see what other hedge funds are holding ZM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zoom Communications, Inc. (NASDAQ:ZM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.