Zoom Communications (NASDAQ:ZM) Trading Down 4.3% – Should You Sell?

Shares of Zoom Communications, Inc. (NASDAQ:ZM) dropped 4.3% during trading on Tuesday . The stock traded as low as $99.66 and last traded at $101.12. Approximately 1,071,537 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 4,409,872 shares. The stock had previously closed at $105.64.

Wall Street Analyst Weigh In

ZM has been the topic of several research analyst reports. Royal Bank Of Canada boosted their target price on shares of Zoom Communications from $110.00 to $130.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Citigroup boosted their price target on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a research report on Tuesday. Benchmark boosted their price target on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. BTIG Research boosted their price target on shares of Zoom Communications from $100.00 to $125.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Finally, Rosenblatt Securities boosted their price target on shares of Zoom Communications from $115.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, Zoom Communications has an average rating of “Moderate Buy” and an average price target of $108.15.

Zoom Communications Price Performance

The firm has a market cap of $29.60 billion, a P/E ratio of 14.75, a PEG ratio of 5.73 and a beta of 1.00. The stock’s 50-day simple moving average is $90.37 and its two-hundred day simple moving average is $87.12.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the previous year, the business posted $1.43 earnings per share. The business’s revenue was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. As a group, sell-side analysts expect that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, COO Aparna Bawa sold 12,886 shares of the business’s stock in a transaction on Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares in the company, valued at $173,312.36. The trade was a 86.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the business’s stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the sale, the chief executive officer directly owned 36,796 shares of the company’s stock, valued at $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 144,329 shares of company stock valued at $12,364,989. Insiders own 11.51% of the company’s stock.

Institutional Trading of Zoom Communications

A number of large investors have recently made changes to their positions in ZM. NewEdge Advisors LLC boosted its stake in shares of Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after purchasing an additional 1,153 shares during the period. Intech Investment Management LLC boosted its stake in shares of Zoom Communications by 59.1% during the first 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. boosted its stake in shares of Zoom Communications by 82.0% during the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after purchasing an additional 397 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Zoom Communications during the second quarter valued at $217,000. Finally, Invesco Ltd. boosted its stake 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 purchasing an additional 47,749 shares during the period. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.