Insider Selling: Zoom Communications (NASDAQ:ZM) CFO Sells $844,315.94 in Stock

Key Points

• Zoom CFO Michelle Chang sold 8,489 shares for approximately $844,316 at an average price of $99.46. The pre-arranged Rule 10b5-1 sale covered tax obligations from vested equity awards and reduced her ownership by 17.35%.
• Zoom shares traded around $98.16, while the company recently exceeded quarterly earnings and revenue expectations, reporting $1.55 EPS and $1.28 billion in revenue.
• Wall Street maintains a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $113.62; institutional investors own 66.54% of the stock.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CFO Michelle Chang sold 8,489 shares of the stock in a transaction on Monday, October 12th. The shares were sold at an average price of $99.46, for a total transaction of $844,315.94. Following the transaction, the chief financial officer owned 40,438 shares in the company, valued at $4,021,963.48. This trade represents a 17.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Zoom Communications Trading Up 0.2%

ZM stock traded up $0.22 during mid-day trading on Tuesday, hitting $98.16. 2,596,338 shares of the company were exchanged, compared to its average volume of 2,942,318. The firm has a fifty day simple moving average of $97.63 and a 200 day simple moving average of $94.28. The company has a market capitalization of $28.64 billion, a PE ratio of 26.98, a price-to-earnings-growth ratio of 4.52 and a beta of 1.03. Zoom Communications, Inc. has a twelve month low of $70.70 and a twelve month high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued 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 business had revenue of $1.28 billion for the quarter, compared to analyst estimates 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 quarter in the prior year, the business 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 anticipate that Zoom Communications, Inc. will post 4.27 earnings per share for the current year.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of ZM. Atreides Management LP acquired a new position in shares of Zoom Communications in the 1st quarter worth $105,761,000. Rubric Capital Management LP acquired a new stake in shares of Zoom Communications during the first quarter worth $80,471,000. Bank of America Corp DE lifted its holdings in shares of Zoom Communications by 50.5% during 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 purchasing an additional 592,899 shares during the last quarter. BlueCrest Capital Management Ltd purchased a new stake in shares of Zoom Communications during the second quarter valued at $43,925,000. Finally, KBC Group NV boosted its position in shares of Zoom Communications by 69.1% in the 1st quarter. KBC Group NV now owns 1,193,027 shares of the company's stock valued at $95,907,000 after purchasing an additional 487,384 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ZM has been the subject of several research reports. Needham & Company LLC reiterated a "buy" rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Royal Bank Of Canada reissued an "outperform" rating and set a $130.00 price target on shares of Zoom Communications in a research report on Wednesday, August 26th. Cantor Fitzgerald restated a "neutral" rating and set a $104.00 price objective on shares of Zoom Communications in a research note on Monday, August 24th. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, 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. Fourteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $113.62.

Zoom Communications Company Profile

Zoom Communications, Inc NASDAQ: ZM, formerly known as Zoom Video Communications, is a cloud-based communications and collaboration technology company. Its platform enables organizations and individuals to connect through video meetings, voice communications, messaging, webinars and other digital collaboration tools.

The company's Zoom Workplace platform includes products such as Zoom Meetings, Zoom Phone, Team Chat, Whiteboard and Zoom Rooms. Zoom also provides Zoom Contact Center, Zoom Events and other tools designed to support customer engagement, employee collaboration and hybrid work.

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