Insider Selling: Zoom Communications (NASDAQ:ZM) CEO Sells 15,273 Shares of Stock

Key Points

• CEO Eric Yuan sold 15,273 shares on April 14 at an average price of $82.23 for about $1.26 million, reducing his stake by 29.33% to 36,796 shares; the trade was made under a pre-arranged Rule 10b5-1 trading plan.
• The stock traded up 8.0% to $89.03 on higher-than-average volume; Zoom reported Q results with a $1.44 EPS (a $0.04 miss) but revenue of $1.25B beat estimates, and analysts hold a consensus rating of "Hold" with an average price target of $95.32.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CEO Eric Yuan sold 15,273 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $82.23, for a total transaction of $1,255,898.79. Following the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $3,025,735.08. The trade was a 29.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zoom Communications Trading Up 8.0%

Shares of NASDAQ:ZM traded up $6.63 on Wednesday, reaching $89.03. 6,058,782 shares of the company's stock were exchanged, compared to its average volume of 4,152,843. The company has a fifty day moving average of $82.24 and a 200-day moving average of $83.92. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $97.58. The company has a market capitalization of $26.23 billion, a price-to-earnings ratio of 14.36, a PEG ratio of 4.74 and a beta of 0.88.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the company earned $1.41 EPS. The business's revenue for the quarter was up 5.3% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities research analysts forecast that Zoom Communications, Inc. will post 2.93 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on ZM shares. Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Citigroup raised shares of Zoom Communications from a "neutral" rating to a "buy" rating and upped their price target for the stock from $94.00 to $106.00 in a report on Monday, January 12th. Argus raised shares of Zoom Communications to a "hold" rating in a report on Monday, March 9th. Piper Sandler upped their price target on shares of Zoom Communications from $85.00 to $91.00 and gave the stock a "neutral" rating in a report on Monday, January 5th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $115.00 price target on shares of Zoom Communications in a report on Thursday, February 26th. Fourteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Zoom Communications currently has a consensus rating of "Hold" and an average price target of $95.32.

Institutional Trading of Zoom Communications

Institutional investors and hedge funds have recently made changes to their positions in the company. Advocate Investing Services LLC bought a new position in Zoom Communications in the 4th quarter valued at approximately $26,000. Strive Financial Group LLC bought a new position in Zoom Communications in the 4th quarter valued at approximately $27,000. Toth Financial Advisory Corp bought a new position in Zoom Communications in the 4th quarter valued at approximately $28,000. Root Financial Partners LLC bought a new position in Zoom Communications in the 3rd quarter valued at approximately $33,000. Finally, Sound Income Strategies LLC lifted 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 purchasing an additional 200 shares during the last quarter. Institutional investors own 66.54% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.