Zoom Communications, Inc. (NASDAQ:ZM) Sees Large Growth in Short Interest

Key Points

• Short interest jumped 15.7% in April to 6,531,127 shares (about 2.5% of the float), with a short‑interest ratio of 1.6 days, indicating rising bearish positioning against ZM.
• Top insiders sold sizable stakes under prearranged Rule 10b5‑1 plans—CEO Eric Yuan sold 69,923 shares and CFO Michelle Chang sold 8,489—part of 138,887 shares sold over 90 days worth ~$11.6M, leaving insiders with 11.51% ownership.
• Near‑term catalyst: Zoom will report Q1 FY2027 results after the close on May 21, while management’s push into AI/LLM initiatives and unusually large call‑option buying point to active, mixed investor sentiment ahead of the print.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) was the target of a significant growth in short interest in the month of April. As of April 15th, there was short interest totaling 6,531,127 shares, a growth of 15.7% from the March 31st total of 5,645,845 shares. Based on an average daily trading volume, of 4,122,595 shares, the short-interest ratio is presently 1.6 days. Approximately 2.5% of the company's shares are short sold.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer owned 30,467 shares in the company, valued at $2,477,576.44. The trade was a 21.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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. Also, CEO Eric S. Yuan sold 69,923 shares of the business's stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer owned 36,796 shares of the company's stock, valued at $2,988,571.12. This trade represents a 65.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 138,887 shares of company stock valued at $11,590,330. 11.51% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

Several institutional investors have recently bought and sold shares of the business. Graetz Wealth LLC increased its holdings in Zoom Communications by 14.7% during the first quarter. Graetz Wealth LLC now owns 3,338 shares of the company's stock valued at $268,000 after buying an additional 427 shares during the period. Resona Asset Management Co. Ltd. increased its holdings in Zoom Communications by 4.6% during the first quarter. Resona Asset Management Co. Ltd. now owns 94,652 shares of the company's stock valued at $7,591,000 after buying an additional 4,131 shares during the period. Childress Capital Advisors LLC increased its holdings in Zoom Communications by 15.5% during the first quarter. Childress Capital Advisors LLC now owns 3,604 shares of the company's stock valued at $290,000 after buying an additional 484 shares during the period. Meitav Investment House Ltd. purchased a new position in Zoom Communications during the first quarter valued at approximately $804,000. Finally, Resonant Capital Advisors LLC increased its holdings in Zoom Communications by 10.3% during the first quarter. Resonant Capital Advisors LLC now owns 5,257 shares of the company's stock valued at $423,000 after buying an additional 490 shares during the period. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications News Roundup

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Unusually large options buying—investors purchased ~23,600 call options on Thursday (about +41% vs. average), signaling short-term bullish bets and likely contributing to upward price pressure. (No direct article link)
• Positive Sentiment: Management is investing in positioning Zoom around large language models (a dedicated “SWAT team” to manage how ChatGPT/Gemini describe the company), which could help product differentiation and enterprise demand for AI-enhanced features. Zoom Has a ‘SWAT Team' to Stand Out on ChatGPT and Gemini
• Neutral Sentiment: Company announced Q1 FY2027 results will be released after the market close on May 21 with a live webcast—this is a near-term catalyst that can drive volatility and reprice shares based on guidance and metrics. Zoom to Release Financial Results for the First Quarter of Fiscal Year 2027
• Neutral Sentiment: Media and retail interest is elevated—Zacks and other outlets flagged ZM as a “trending” ticker and noted the stock’s intraday uptick, reflecting greater retail/investor attention that can amplify moves in either direction. Zoom Communications (ZM) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: Online investor forums (LSE share chat) show active discussion—useful to gauge retail sentiment but not a reliable directional signal on its own. Zoom Video Communications Share Chat (ZM.US)

Zoom Communications Stock Performance

Zoom Communications stock opened at $97.15 on Friday. The company has a market capitalization of $28.63 billion, a PE ratio of 15.67, a P/E/G ratio of 5.48 and a beta of 0.88. The company has a 50 day moving average price of $82.06 and a 200-day moving average price of $84.70. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $97.80.

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 (EPS) for the quarter, missing the consensus estimate 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 net margin of 39.03% and a return on equity of 11.88%. The business's quarterly revenue was up 5.3% compared to the same quarter last year. During the same period in the previous year, the business earned $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. On average, analysts forecast that Zoom Communications will post 3.94 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Rosenblatt Securities restated a "buy" rating and set a $115.00 target price on shares of Zoom Communications in a research report on Thursday, February 26th. KeyCorp lifted their price target on shares of Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a research note on Thursday, February 26th. Benchmark decreased their price target on shares of Zoom Communications from $115.00 to $110.00 and set a "buy" rating for the company in a research note on Tuesday, February 24th. Wall Street Zen downgraded shares of Zoom Communications from a "buy" rating to a "hold" rating in a research note on Saturday, March 7th. Finally, Piper Sandler lifted their price target on shares of Zoom Communications from $85.00 to $91.00 and gave the company a "neutral" rating in a research note on Monday, January 5th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $95.32.

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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