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

Key Points

• Steamboat Capital Partners cut its Zoom stake by 32.4% in the second quarter, selling 48,054 shares and retaining 100,060 shares worth approximately $8.6 million. Institutional investors collectively own 66.54% of Zoom.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS versus the $1.48 consensus and revenue of $1.28 billion, up 4.9% year over year. The stock opened at $96.44, down 4.8%, with a consensus analyst rating of “Moderate Buy” and an average target price of $112.55.
• Zoom insiders sold 50,881 shares worth roughly $4.9 million over the past 90 days, including sales by an insider and the CFO under pre-arranged trading plans.

Steamboat Capital Partners LLC reduced its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 32.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 100,060 shares of the company's stock after selling 48,054 shares during the period. Zoom Communications comprises approximately 1.8% of Steamboat Capital Partners LLC's holdings, making the stock its 19th biggest position. Steamboat Capital Partners LLC's holdings in Zoom Communications were worth $8,636,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also modified their holdings of the company. NewEdge Advisors LLC increased its holdings in shares of Zoom Communications by 16.8% in the 1st quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock worth $591,000 after acquiring an additional 1,153 shares during the period. Intech Investment Management LLC boosted its stake in Zoom Communications by 59.1% during the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after purchasing an additional 6,235 shares during the period. Geneos Wealth Management Inc. boosted its stake in Zoom Communications by 82.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after purchasing an additional 397 shares during the period. Sivia Capital Partners LLC bought a new position in Zoom Communications in the 2nd quarter worth about $217,000. Finally, Invesco Ltd. grew its position in Zoom Communications by 7.0% in the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company's stock worth $56,942,000 after purchasing an additional 47,749 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Zoom Communications Stock Down 4.8%

NASDAQ:ZM opened at $96.44 on Wednesday. The stock has a fifty day simple moving average of $96.39 and a 200 day simple moving average of $91.70. The firm has a market capitalization of $28.14 billion, a price-to-earnings ratio of 8.93, a price-to-earnings-growth ratio of 4.69 and a beta of 1.04. Zoom Communications, Inc. has a 1-year low of $70.70 and a 1-year high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company's revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.53 EPS. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. Equities analysts predict that Zoom Communications, Inc. will post 4.26 earnings per share for the current year.

Insider Activity at Zoom Communications

In related news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total transaction of $703,095.12. Following the completion of the sale, the insider directly owned 148,403 shares in the company, valued at approximately $13,650,107.94. This trade represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares of the company's stock, valued at $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 50,881 shares of company stock worth $4,878,914 in the last 90 days. 8.83% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Needham & Company LLC reaffirmed a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, August 26th. Robert W. Baird lifted their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a research note on Tuesday, May 19th. BTIG Research reaffirmed a "buy" rating and issued a $125.00 price objective on shares of Zoom Communications in a report on Monday, August 24th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $108.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, Mizuho raised their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a research note on Friday, May 22nd. Sixteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $112.55.

About Zoom Communications

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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