Zoom Communications, Inc. $ZM Stock Sold by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group cut its Zoom stake by 6.1% in the third quarter, selling 31,854 shares and retaining 494,222 shares valued at about $44.9 million.
• Zoom reported quarterly EPS of $1.55, topping the $1.48 consensus, while revenue of $1.28 billion rose 4.9% year over year. The company also issued FY2027 EPS guidance of $6.08–$6.12.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $114.48. Company insiders sold 68,845 shares worth about $6.7 million over the prior three months.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 6.1% in the third quarter, according to its most recent filing with the SEC. The firm owned 494,222 shares of the company's stock after selling 31,854 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.17% of Zoom Communications worth $44,861,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in ZM. Atreides Management LP bought a new position in shares of Zoom Communications during the first quarter worth about $105,761,000. Rubric Capital Management LP acquired a new position in shares of Zoom Communications during the 1st quarter worth $80,471,000. Bank of America Corp DE boosted its position in Zoom Communications by 50.5% in the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company's stock valued at $142,108,000 after buying an additional 592,899 shares in the last quarter. International Assets Investment Management LLC raised its holdings in Zoom Communications by 15,035.9% in the 3rd quarter. International Assets Investment Management LLC now owns 557,000 shares of the company's stock valued at $50,559,000 after buying an additional 553,320 shares during the last quarter. Finally, BlueCrest Capital Management Ltd acquired a new stake in Zoom Communications during the 2nd quarter valued at approximately $43,925,000. Institutional investors own 66.54% of the company's stock.

Insider Buying and Selling

In other news, CEO Eric Yuan sold 12,100 shares of the firm's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the transaction, the chief executive officer owned 22,998 shares of the company's stock, valued at approximately $2,155,832.52. This trade represents a 34.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Mcmaster sold 1,500 shares of the firm's stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.25, for a total transaction of $151,875.00. Following the completion of the sale, the director owned 6,979 shares of the company's stock, valued at $706,623.75. This trade represents a 17.69% 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. Insiders sold a total of 68,845 shares of company stock valued at $6,711,415 in the last three months. 8.83% of the stock is owned by corporate insiders.

Zoom Communications Price Performance

Shares of NASDAQ ZM opened at $91.84 on Thursday. Zoom Communications, Inc. has a 52 week low of $70.70 and a 52 week high of $114.74. The firm has a 50-day simple moving average of $94.81 and a 200-day simple moving average of $92.04. The stock has a market capitalization of $26.80 billion, a price-to-earnings ratio of 25.30, a price-to-earnings-growth ratio of 4.10 and a beta of 1.02.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.48 by $0.07. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. Zoom Communications's revenue was up 4.9% compared to the same quarter last year. During the same period last year, the business posted $1.53 earnings per share. 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. As a group, equities research analysts expect that Zoom Communications, Inc. will post 4.24 EPS for the current year.

Analyst Upgrades and Downgrades

ZM has been the subject of several recent research reports. Rosenblatt Securities restated a "buy" rating and set a $130.00 price objective on shares of Zoom Communications in a report on Wednesday, October 21st. Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. UBS Group decreased their target price on Zoom Communications from $115.00 to $112.00 and set a "neutral" rating for the company in a research report on Wednesday, October 21st. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, Jefferies Financial Group lowered their price objective on Zoom Communications from $118.00 to $116.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $114.48.

Zoom Communications Company Profile

Zoom Communications, Inc NASDAQ: ZM is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company's product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.

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