Investors Purchase Large Volume of Call Options on Zoom Communications (NASDAQ:ZM)

Key Points

• Investors bought 23,600 call options on Zoom, a 41% increase over typical daily call volume, indicating unusually heavy bullish options activity.
• Shares traded at $96.82 (up ~1.1%), near the 12‑month high, with a market cap of $28.5B and a P/E of 15.6; Zoom posted a slight EPS miss of $0.04 last quarter while revenue rose 5.3% and management provided FY2027 and Q1 2027 EPS guidance.
• Company insiders have been selling stock—including CEO and CFO sales executed under Rule 10b5‑1—with 138,887 shares sold in the past 90 days, leaving insiders owning about 10.8% of shares.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) saw some unusual options trading on Thursday. Stock investors purchased 23,600 call options on the stock. This represents an increase of 41% compared to the typical daily volume of 16,734 call options.

Zoom Communications Trading Up 1.1%

NASDAQ ZM traded up $1.06 during trading on Thursday, hitting $96.82. 3,224,026 shares of the company traded hands, compared to its average volume of 4,147,565. Zoom Communications has a 12 month low of $69.15 and a 12 month high of $97.63. The business has a fifty day simple moving average of $81.94 and a 200 day simple moving average of $84.62. The company has a market capitalization of $28.53 billion, a P/E ratio of 15.57, a PEG ratio of 5.20 and a beta of 0.88.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing analysts' consensus estimates of $1.48 by ($0.04). The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.Zoom Communications's quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the firm 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. Equities research analysts predict that Zoom Communications will post 3.94 EPS for the current fiscal year.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Benchmark decreased their target price on Zoom Communications from $115.00 to $110.00 and set a "buy" rating for the company in a research report on Tuesday, February 24th. Citigroup upgraded Zoom Communications from a "neutral" rating to a "buy" rating and upped their target price for the company from $94.00 to $106.00 in a report on Monday, January 12th. Wolfe Research upgraded shares of Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price target for the company in a report on Thursday, February 5th. Sanford C. Bernstein cut their target price on shares of Zoom Communications from $90.00 to $88.00 and set a "market perform" rating for the company in a research report on Thursday, February 26th. Finally, Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $95.32.

Insider Buying and Selling

In related news, CEO Eric S. Yuan sold 15,273 shares of the firm's stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $82.23, for a total transaction of $1,255,898.79. Following the completion of the sale, the chief executive officer directly owned 36,796 shares in the company, valued at approximately $3,025,735.08. This trade represents a 29.33% 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. Also, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at $2,477,576.44. This represents a 21.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last ninety days, insiders have sold 138,887 shares of company stock worth $11,590,330. 10.78% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Communications

Several hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC boosted its position in shares of Zoom Communications by 16.8% in the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock valued at $591,000 after acquiring an additional 1,153 shares during the period. Intech Investment Management LLC boosted its holdings in Zoom Communications by 59.1% in the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after purchasing an additional 6,235 shares during the period. Geneos Wealth Management Inc. grew its position in Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock worth $65,000 after purchasing an additional 397 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of Zoom Communications during the 2nd quarter worth about $217,000. Finally, Invesco Ltd. raised its position in shares of Zoom Communications by 7.0% during the second quarter. Invesco Ltd. now owns 730,207 shares of the company's stock valued at $56,942,000 after buying an additional 47,749 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.

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