Zoom Communications, Inc. $ZM Shares Bought by AlphaQuest LLC

Key Points

• AlphaQuest LLC significantly increased its stake in Zoom Communications by 3,886.4%, owning 36,117 shares by the end of the second quarter, valued at approximately $2.8 million.
• Zoom reported $0.99 earnings per share (EPS) for the most recent quarter, missing expectations of $1.38, while revenue slightly exceeded estimates at $1.22 billion.
• The company's stock has a current market capitalization of $25.32 billion and a consensus rating of "Hold" among analysts with an average target price of $91.74.

AlphaQuest LLC raised its position in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 3,886.4% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 36,117 shares of the company's stock after purchasing an additional 35,211 shares during the period. Zoom Communications comprises approximately 0.3% of AlphaQuest LLC's portfolio, making the stock its 28th biggest holding. AlphaQuest LLC's holdings in Zoom Communications were worth $2,816,000 at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Principal Financial Group Inc. boosted its stake in shares of Zoom Communications by 18.5% during the first quarter. Principal Financial Group Inc. now owns 175,918 shares of the company's stock valued at $12,977,000 after acquiring an additional 27,430 shares during the last quarter. Cambridge Investment Research Advisors Inc. boosted its stake in shares of Zoom Communications by 15.5% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 11,928 shares of the company's stock valued at $880,000 after acquiring an additional 1,601 shares during the last quarter. Spire Wealth Management boosted its stake in shares of Zoom Communications by 990.6% during the first quarter. Spire Wealth Management now owns 1,396 shares of the company's stock valued at $103,000 after acquiring an additional 1,268 shares during the last quarter. Circle Wealth Management LLC boosted its stake in shares of Zoom Communications by 201.6% during the first quarter. Circle Wealth Management LLC now owns 20,391 shares of the company's stock valued at $1,504,000 after acquiring an additional 13,629 shares during the last quarter. Finally, New York State Teachers Retirement System boosted its stake in shares of Zoom Communications by 0.7% during the first quarter. New York State Teachers Retirement System now owns 24,298 shares of the company's stock valued at $1,792,000 after acquiring an additional 171 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Zoom Communications Trading Up 1.1%

Shares of NASDAQ ZM opened at $83.68 on Friday. Zoom Communications, Inc. has a twelve month low of $64.41 and a twelve month high of $92.80. The company has a market capitalization of $25.32 billion, a price-to-earnings ratio of 22.05, a price-to-earnings-growth ratio of 11.19 and a beta of 0.78. The business has a 50 day simple moving average of $81.47 and a 200-day simple moving average of $78.13.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Thursday, August 21st. The company reported $0.99 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.39). Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. The company had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the prior year, the firm earned $1.39 EPS. The company's revenue for the quarter was up 4.7% compared to the same quarter last year. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. As a group, equities analysts predict that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ZM. Dbs Bank raised Zoom Communications to a "moderate buy" rating in a research note on Tuesday, September 16th. Weiss Ratings reissued a "hold (c+)" rating on shares of Zoom Communications in a research report on Tuesday, October 14th. Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 price target on shares of Zoom Communications in a report on Thursday, September 18th. UBS Group started coverage on Zoom Communications in a report on Monday. They set a "neutral" rating and a $85.00 price objective on the stock. Finally, Robert W. Baird dropped their price objective on Zoom Communications from $100.00 to $95.00 and set an "outperform" rating on the stock in a report on Friday, August 22nd. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Zoom Communications has a consensus rating of "Hold" and an average target price of $91.74.

Insiders Place Their Bets

In other news, CEO Eric S. Yuan sold 33,692 shares of the company's stock in a transaction on Monday, October 13th. The shares were sold at an average price of $79.76, for a total transaction of $2,687,273.92. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction on Monday, October 6th. The shares were sold at an average price of $80.78, for a total value of $199,930.50. Following the completion of the sale, the director owned 152,644 shares of the company's stock, valued at $12,330,582.32. The trade was a 1.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 98,856 shares of company stock valued at $8,009,892. 11.51% of the stock is currently owned by insiders.

Zoom Communications Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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