Eric Yuan Sells 12,100 Shares of Zoom Communications (NASDAQ:ZM) Stock

Key Points

• CEO Eric Yuan sold 12,100 Zoom shares at an average price of $95.34, generating approximately $1.15 million. The Rule 10b5-1 transaction reduced his ownership by 34.47%, leaving him with 22,998 shares.
• Zoom’s latest quarterly results exceeded expectations, with adjusted EPS of $1.55 versus the $1.48 consensus and revenue of $1.28 billion. Revenue increased 4.9% year over year, while the company reported a 65.19% net margin.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $112.55; institutional investors own 66.54% of Zoom’s shares.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CEO Eric Yuan sold 12,100 shares of Zoom Communications stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $95.34, for a total transaction of $1,153,614.00. Following the completion of the sale, the chief executive officer owned 22,998 shares in the company, valued at $2,192,629.32. This trade represents a 34.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zoom Communications Stock Performance

Zoom Communications stock traded up $2.28 during mid-day trading on Thursday, reaching $98.14. The company's stock had a trading volume of 2,374,924 shares, compared to its average volume of 4,113,784. Zoom Communications, Inc. has a 12 month low of $70.70 and a 12 month high of $114.74. The business's 50 day simple moving average is $95.28 and its 200 day simple moving average is $91.47. The company has a market capitalization of $28.78 billion, a price-to-earnings ratio of 9.09, a price-to-earnings-growth ratio of 4.39 and a beta of 1.04.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations 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 for the quarter was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm posted $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. As a group, sell-side analysts expect that Zoom Communications, Inc. will post 4.26 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 27th. Royal Bank Of Canada reiterated an "outperform" rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday, August 26th. Mizuho increased their price objective on Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, May 22nd. Cantor Fitzgerald restated a "neutral" rating and set a $104.00 target price on shares of Zoom Communications in a report on Monday, August 24th. Finally, Bank of America initiated coverage on shares of Zoom Communications in a research report on Wednesday, August 19th. They set a "buy" rating and a $130.00 price target on the stock. Sixteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $112.55.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Advocate Investing Services LLC bought a new position in Zoom Communications during the 4th quarter worth $26,000. Strive Financial Group LLC bought a new stake in shares of Zoom Communications during the 4th quarter worth approximately $27,000. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock worth $30,000 after purchasing an additional 200 shares during the last quarter. Rexford Capital Inc. boosted its stake in Zoom Communications by 45.7% in the first 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, Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its stake in shares of Zoom Communications by 83.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock valued at $38,000 after purchasing an additional 200 shares in the last quarter. Institutional investors and hedge funds own 66.54% 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.

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