Zoom Communications (NASDAQ:ZM) CEO Eric Yuan Sells 12,100 Shares

Key Points

• Eric Yuan sold 12,100 shares of Zoom at an average price of $106.60 under a pre-arranged Rule 10b5-1 plan, totaling about $1.29 million, per an SEC filing.
• Zoom (ZM) traded at $105.13 (down $3.97) with a market cap near $31 billion, a P/E of 16.96 and a 52-week range of $69.15–$109.50, while analysts' consensus rating is "Hold" with a $95.32 price target.
• The company slightly missed EPS in the latest quarter ($1.44 vs. $1.48 est.) though revenue beat, set FY2027 EPS guidance of 5.770–5.810, and about 66.5% of shares are owned by institutional investors including Norges Bank, AQR and Vanguard.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) CEO Eric Yuan sold 12,100 shares of the firm's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.60, for a total value of $1,289,860.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Zoom Communications Price Performance

NASDAQ:ZM traded down $3.97 during trading hours on Wednesday, hitting $105.13. The company's stock had a trading volume of 6,173,064 shares, compared to its average volume of 4,266,525. The stock has a fifty day simple moving average of $82.44 and a 200-day simple moving average of $84.99. The company has a market capitalization of $30.98 billion, a P/E ratio of 16.96, a PEG ratio of 6.10 and a beta of 1.00. Zoom Communications, Inc. has a twelve month low of $69.15 and a twelve month high of $109.50.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). The business had revenue of $1.25 billion during the quarter, compared to analyst estimates 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 last 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, equities analysts predict that Zoom Communications, Inc. will post 3.94 EPS for the current fiscal year.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in Zoom Communications during the fourth quarter worth approximately $509,788,000. AQR Capital Management LLC grew its stake in Zoom Communications by 43.9% during the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock worth $1,052,328,000 after purchasing an additional 3,718,186 shares during the period. Two Sigma Investments LP acquired a new stake in Zoom Communications during the third quarter worth approximately $86,709,000. Vanguard Group Inc. grew its stake in Zoom Communications by 4.0% during the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock worth $2,327,002,000 after purchasing an additional 1,029,623 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in Zoom Communications by 46.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company's stock worth $218,282,000 after purchasing an additional 836,594 shares during the period. 66.54% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Benchmark dropped 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. KeyCorp increased their target price on Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a research report on Thursday, February 26th. Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday. Wolfe Research upgraded Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 target price for the company in a research report on Thursday, February 5th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $115.00 target price on shares of Zoom Communications in a research report on Thursday, February 26th. Fourteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $95.32.

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.

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