Zoom Communications (NASDAQ:ZM) Insider Sells $758,842.70 in Stock

Key Points

• Zoom insider Velchamy Sankarlingam sold 7,645 shares for approximately $758,843 at an average price of $99.26. The Rule 10b5-1 transaction was intended to cover tax withholding on vested equity awards, reducing his ownership by 4.79% to 151,813 shares.
• Zoom shares traded near $98.16, with a market capitalization of about $28.64 billion. The stock’s 52-week range is $70.70 to $114.74.
• Zoom recently exceeded earnings expectations, reporting $1.55 in quarterly EPS and $1.28 billion in revenue, while analysts maintain a “Moderate Buy” consensus with an average price target of $113.62.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction on Monday, October 12th. The shares were sold at an average price of $99.26, for a total value of $758,842.70. Following the completion of the transaction, the insider owned 151,813 shares of the company's stock, valued at approximately $15,068,958.38. This trade represents a 4.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 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.

Velchamy Sankarlingam also recently made the following trade(s):

• On Thursday, September 10th, Velchamy Sankarlingam sold 2,590 shares of Zoom Communications stock. The stock was sold at an average price of $95.81, for a total value of $248,147.90.
• On Wednesday, July 15th, Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock. The stock was sold at an average price of $91.98, for a total value of $703,095.12.

Zoom Communications Stock Performance

NASDAQ ZM traded up $0.22 during trading hours on Tuesday, hitting $98.16. The company had a trading volume of 2,596,338 shares, compared to its average volume of 2,942,318. The firm has a market capitalization of $28.64 billion, a price-to-earnings ratio of 26.98, a PEG ratio of 4.52 and a beta of 1.03. 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 $97.63 and a 200 day simple moving average of $94.28.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same period in the prior year, the business posted $1.53 earnings per share. The company's revenue was up 4.9% on a year-over-year basis. 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. On average, research analysts forecast that Zoom Communications, Inc. will post 4.27 earnings per share for the current year.

Institutional Investors Weigh In On Zoom Communications

Several hedge funds have recently bought and sold shares of the stock. Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of Zoom Communications by 133.3% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock worth $30,000 after buying an additional 200 shares during the last quarter. Rexford Capital Inc. raised its position in shares of Zoom Communications by 45.7% during the 1st 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. V Square Quantitative Management LLC raised its position in shares of Zoom Communications by 100.4% during the 1st quarter. V Square Quantitative Management LLC now owns 505 shares of the company's stock valued at $41,000 after buying an additional 253 shares in the last quarter. Strategic Investment Solutions Inc. IL lifted its holdings in shares of Zoom Communications by 400.0% during the 2nd quarter. Strategic Investment Solutions Inc. IL now owns 500 shares of the company's stock worth $43,000 after acquiring an additional 400 shares during the last quarter. Finally, Elevation Wealth Partners LLC lifted its holdings in shares of Zoom Communications by 133.8% during the 3rd quarter. Elevation Wealth Partners LLC now owns 477 shares of the company's stock worth $43,000 after acquiring an additional 273 shares during the last quarter. 66.54% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on ZM shares. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a report on Wednesday, August 26th. Sanford C. Bernstein reissued a "market perform" rating and issued a $108.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. Needham & Company LLC reissued a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. UBS Group boosted their price target on shares of Zoom Communications from $105.00 to $115.00 and gave the company a "neutral" rating in a research report on Thursday, August 20th. Finally, Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Fourteen investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $113.62.

About Zoom Communications

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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