Insider Selling: Zoom Communications (NASDAQ:ZM) Director Sells $151,875.00 in Stock

Zoom Communications, Inc. (NASDAQ:ZM) Director Herbert Raymond Mcmaster sold 1,500 shares of Zoom Communications stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $101.25, for a total transaction of $151,875.00. Following the completion of the sale, the director owned 6,979 shares in the company, valued at $706,623.75. The trade was a 17.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Herbert Raymond Mcmaster also recently made the following trade(s):

• On Thursday, October 8th, Herbert Raymond Mcmaster sold 3,000 shares of Zoom Communications stock. The stock was sold at an average price of $94.71, for a total transaction of $284,130.00.

Zoom Communications Trading Down 0.4%

Shares of Zoom Communications stock traded down $0.43 during trading hours on Friday, reaching $95.77. 3,039,273 shares of the company’s stock were exchanged, compared to its average volume of 2,694,071. The company has a 50 day moving average of $96.29 and a two-hundred day moving average of $95.10. Zoom Communications, Inc. has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The stock has a market cap of $27.94 billion, a P/E ratio of 26.50, a P/E/G ratio of 4.27 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter in the previous year, the business earned $1.53 earnings per share. Zoom Communications’s quarterly 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. As a group, analysts expect that Zoom Communications, Inc. will post 4.27 earnings per share for the current fiscal year.

Institutional Trading of Zoom Communications

A number of hedge funds have recently made changes to their positions in the business. Pacer Advisors Inc. increased its holdings in shares of Zoom Communications by 10.8% during the 1st quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock worth $208,680,000 after acquiring an additional 253,181 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Zoom Communications by 4.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after purchasing an additional 94,043 shares during the last quarter. Bank of America Corp DE lifted its holdings in Zoom Communications by 50.5% during the 1st quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after purchasing an additional 592,899 shares during the last quarter. Bank of New York Mellon Corp boosted its position in Zoom Communications by 44.5% during the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock worth $113,490,000 after purchasing an additional 434,981 shares during the period. Finally, First Trust Advisors LP boosted its position in Zoom Communications by 2.8% during the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock worth $109,531,000 after purchasing an additional 36,657 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on ZM shares. BTIG Research reaffirmed a “buy” rating and set a $125.00 price target on shares of Zoom Communications in a research report on Wednesday. Sanford C. Bernstein reissued a “market perform” rating and issued a $108.00 price objective on shares of Zoom Communications in a report on Wednesday, August 26th. Jefferies Financial Group cut their price target on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. KeyCorp reissued a “sector weight” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday. Sixteen 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, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

About Zoom Communications

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.