Zoom Communications, Inc. $ZM Shares Sold by Essential Partners LLC

Key Points

• Essential Partners LLC cut its Zoom Communications stake by 74.9% in the first quarter, selling 13,906 shares and retaining 4,668 shares worth approximately $375,000. Institutional investors and hedge funds collectively own 66.54% of Zoom’s stock.
• Analyst sentiment remains generally positive: 15 analysts rate Zoom a Buy and 12 rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $109.33.
• Zoom exceeded quarterly expectations, reporting $1.55 in earnings per share versus a $1.42 consensus estimate and $1.24 billion in revenue, up 5.5% year over year. Shares opened at $96.07, compared with a 52-week range of $69.15 to $114.74.

Essential Partners LLC lowered its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 74.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 4,668 shares of the company's stock after selling 13,906 shares during the quarter. Essential Partners LLC's holdings in Zoom Communications were worth $375,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Advocate Investing Services LLC purchased a new stake in shares of Zoom Communications in the fourth quarter valued at approximately $26,000. Strive Financial Group LLC purchased a new position in shares of Zoom Communications during the 4th quarter valued at approximately $27,000. Toth Financial Advisory Corp purchased a new position in shares of Zoom Communications during the 4th quarter valued at approximately $28,000. Rexford Capital Inc. lifted its position in shares of Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after buying an additional 122 shares in the last quarter. Finally, Sound Income Strategies LLC grew its stake in Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock valued at $33,000 after acquiring an additional 200 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Robert W. Baird boosted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday, July 21st. BTIG Research lifted their target price on shares of Zoom Communications from $100.00 to $125.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Royal Bank Of Canada reissued an "outperform" rating and set a $130.00 target price on shares of Zoom Communications in a research note on Tuesday, June 30th. Finally, Piper Sandler upped their price target on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $109.33.

Zoom Communications Price Performance

Shares of NASDAQ:ZM opened at $96.07 on Friday. The business's 50 day moving average price is $92.61 and its 200-day moving average price is $89.22. The firm has a market capitalization of $28.17 billion, a PE ratio of 14.11, a P/E/G ratio of 4.95 and a beta of 1.01. Zoom Communications, Inc. has a 1 year low of $69.15 and a 1 year 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 the consensus estimate of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the business earned $1.43 earnings per share. The firm's revenue for the quarter was up 5.5% on a year-over-year basis. 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, analysts expect that Zoom Communications, Inc. will post 4.21 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Santiago Subotovsky sold 2,637 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $90.15, for a total value of $237,725.55. Following the transaction, the director directly owned 138,554 shares of the company's stock, valued at approximately $12,490,643.10. This trade represents a 1.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares in the company, valued at $3,219,041.60. The trade was a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 45,874 shares of company stock valued at $4,789,950 in the last 90 days. 8.83% of the stock is owned by insiders.

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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