Insider Selling: Zoom Communications (NASDAQ:ZM) CFO Sells 8,489 Shares of Stock

Key Points

• CFO Michelle Chang sold 8,489 shares on April 10 at an average price of $81.32 for $690,325, reducing her stake by 21.79% to 30,467 shares; the sale was executed under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity.
• Zoom reported Q results with $1.44 EPS (missing estimates by $0.04) and $1.25B revenue, set FY2027 EPS guidance of 5.770–5.810 and Q1 2027 guidance of 1.400–1.420, while the stock trades around $82.80 with a $24.4B market cap and an average analyst target of $95.32.
• Institutional ownership is high at 66.54%, with large position increases from Vanguard, AQR and others during the most recent quarter.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the transaction, the chief financial officer directly owned 30,467 shares of the company's stock, valued at approximately $2,477,576.44. This trade represents a 21.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 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 Price Performance

Shares of ZM stock traded up $3.56 during trading hours on Monday, reaching $82.80. 4,629,224 shares of the company's stock were exchanged, compared to its average volume of 3,503,373. The company has a market cap of $24.40 billion, a P/E ratio of 13.35, a price-to-earnings-growth ratio of 4.53 and a beta of 0.88. The company's 50 day moving average is $82.36 and its two-hundred day moving average is $83.94. Zoom Communications, Inc. has a 1 year low of $69.15 and a 1 year high of $97.58.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued 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). The business had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business's quarterly revenue was up 5.3% on a year-over-year basis. During the same period last year, the company posted $1.41 earnings per share. 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, analysts predict that Zoom Communications, Inc. will post 2.93 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on ZM shares. BTIG Research cut their target price on Zoom Communications from $105.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, February 26th. Argus raised Zoom Communications to a "hold" rating in a research note on Monday, March 9th. KeyCorp raised their price objective on Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a research note on Thursday, February 26th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Zoom Communications in a research note on Monday, December 29th. Finally, Zacks Research downgraded Zoom Communications from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 13th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $95.32.

Hedge Funds Weigh In On Zoom Communications

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Zoom Communications by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock valued at $2,327,002,000 after buying an additional 1,029,623 shares during the last quarter. AQR Capital Management LLC grew its holdings in Zoom Communications by 43.9% during the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock valued at $1,052,328,000 after buying an additional 3,718,186 shares during the last quarter. State Street Corp grew its holdings in Zoom Communications by 5.0% during the 4th quarter. State Street Corp now owns 7,582,924 shares of the company's stock valued at $654,331,000 after buying an additional 363,776 shares during the last quarter. Norges Bank acquired a new stake in Zoom Communications during the 4th quarter valued at $509,788,000. Finally, Geode Capital Management LLC grew its holdings in Zoom Communications by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company's stock valued at $445,254,000 after buying an additional 152,862 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.

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.