Stock Traders Buy High Volume of Zoom Communications Call Options (NASDAQ:ZM)

Key Points

• Zoom Communications saw a significant increase in options trading, with stock traders purchasing 20,918 call options, marking a 45% rise from its typical daily volume.
• Insider transactions included Director Jonathan Chadwick selling 25,000 shares, representing an 80.97% decrease in his ownership, while Velchamy Sankarlingam also reduced his stake by 5.59%.
• Institutional investors have recently made substantial modifications to their stakes in Zoom, with Norges Bank purchasing a new position valued at nearly $540 million in the second quarter.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) saw unusually large options trading on Monday. Stock traders purchased 20,918 call options on the stock. Thisrepresentsanincreaseofapproximately45% compared to the typical daily volume of 14,407 call options.

Insider Activity

In other news, Director Jonathan Chadwick sold 25,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $74.86, for a total value of $1,871,500.00. Following the transaction, the director owned 5,875 shares of the company's stock, valued at approximately $439,802.50. This trade represents a 80.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Velchamy Sankarlingam sold 7,661 shares of the stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $77.50, for a total transaction of $593,727.50. Following the completion of the sale, the insider directly owned 129,377 shares of the company's stock, valued at $10,026,717.50. This trade represents a 5.59% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 87,542 shares of company stock valued at $6,609,623 in the last quarter. Insiders own 10.78% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in Zoom Communications during the second quarter valued at $539,998,000. Acadian Asset Management LLC grew its stake in shares of Zoom Communications by 41.1% in the 2nd quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company's stock worth $293,909,000 after buying an additional 1,097,333 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in Zoom Communications by 63.5% during the second quarter. Robeco Institutional Asset Management B.V. now owns 2,137,093 shares of the company's stock worth $166,651,000 after acquiring an additional 830,393 shares during the last quarter. Victory Capital Management Inc. increased its position in shares of Zoom Communications by 119.5% during the 1st quarter. Victory Capital Management Inc. now owns 1,405,311 shares of the company's stock valued at $103,670,000 after purchasing an additional 765,092 shares during the last quarter. Finally, Vanguard Group Inc. lifted its position in Zoom Communications by 2.6% in the first quarter. Vanguard Group Inc. now owns 24,796,654 shares of the company's stock worth $1,829,249,000 after buying an additional 624,863 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Citigroup lifted their price target on Zoom Communications from $84.00 to $85.00 and gave the company a "neutral" rating in a research report on Monday. Royal Bank Of Canada boosted their target price on shares of Zoom Communications from $95.00 to $100.00 and gave the stock an "outperform" rating in a research report on Friday. Wedbush reiterated an "outperform" rating and issued a $95.00 price objective on shares of Zoom Communications in a research note on Friday. Cantor Fitzgerald reissued a "neutral" rating and issued a $87.00 price target on shares of Zoom Communications in a report on Thursday, May 22nd. Finally, JMP Securities restated a "market perform" rating on shares of Zoom Communications in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $89.04.

Zoom Communications Price Performance

NASDAQ ZM traded down $1.27 during trading on Monday, hitting $81.20. 3,208,117 shares of the company's stock traded hands, compared to its average volume of 2,765,176. The stock has a fifty day moving average of $75.08 and a two-hundred day moving average of $76.57. The firm has a market cap of $24.57 billion, a P/E ratio of 21.43, a PEG ratio of 21.46 and a beta of 0.68. Zoom Communications has a 12-month low of $64.41 and a 12-month high of $92.80.

About Zoom Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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