Zoom Communications, Inc. $ZM Stock Purchased by Retirement Systems of Alabama

Retirement Systems of Alabama boosted its stake in shares of Zoom Communications, Inc. (NASDAQ:ZM) by 11.2% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 548,536 shares of the company’s stock after purchasing an additional 55,234 shares during the quarter. Retirement Systems of Alabama owned about 0.19% of Zoom Communications worth $49,791,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Pacer Advisors Inc. lifted its stake 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 buying an additional 253,181 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Zoom Communications by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after buying an additional 94,043 shares during the last quarter. Bank of America Corp DE grew its stake in Zoom Communications by 50.5% in 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 buying an additional 592,899 shares during the last quarter. Bank of New York Mellon Corp grew its stake in Zoom Communications by 44.5% in the 1st quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after buying an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in Zoom Communications by 2.8% in the 1st quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after acquiring an additional 36,657 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications Trading Down 0.9%

Shares of ZM stock opened at $90.91 on Wednesday. The stock has a market cap of $26.53 billion, a P/E ratio of 25.26, a price-to-earnings-growth ratio of 4.17 and a beta of 1.02. The stock has a 50 day simple moving average of $94.25 and a 200 day simple moving average of $92.21. Zoom Communications, Inc. has a 1 year low of $70.70 and a 1 year high of $114.74.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The firm’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.53 earnings per share. 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. Analysts forecast that Zoom Communications, Inc. will post 4.16 EPS for the current year.

Insider Activity

In other news, CFO Michelle Chang sold 10,156 shares of the stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $101.93, for a total transaction of $1,035,201.08. Following the sale, the chief financial officer directly owned 30,282 shares of the company’s stock, valued at approximately $3,086,644.26. This represents a 25.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction on Monday, October 12th. The stock was sold at an average price of $99.26, for a total value of $758,842.70. Following the completion of the transaction, the insider owned 151,813 shares in the company, valued at $15,068,958.38. The trade was a 4.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 83,582 shares of company stock worth $8,054,735. 8.83% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Sanford C. Bernstein restated a “market perform” rating and set a $108.00 price objective on shares of Zoom Communications in a research report on Wednesday, August 26th. Needham & Company LLC restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a report on Thursday, October 22nd. Morgan Stanley upped their target price on Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 26th. Rosenblatt Securities reiterated a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, October 21st. Finally, UBS Group lowered their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 21st. Sixteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Zoom launched AI Launchpad, offering eligible startups up to $150,000 in credits for its speech, language and voice AI services, with no equity stake required. The program may encourage developers to build on Zoom’s AI tools, though any revenue benefit is uncertain and likely not immediate. Zoom AI Launchpad announcement
• Neutral Sentiment: A report described a significant increase in short interest but gave the total as zero shares and the short-interest ratio as zero days. Those figures indicate no reported short position, making the headline’s characterization inconsistent and providing no clear trading signal.
• Negative Sentiment: Director Santiago Subotovsky sold 2,637 shares for about $236,000. The sale reduced his holdings by 2.26%, but it was made under a pre-arranged Rule 10b5-1 plan, which makes it a less direct signal about his view of Zoom’s prospects. Director stock sale report

Zoom Communications Company Profile

Zoom Communications provides cloud-based collaboration and communications software for businesses, organizations and individual users. Its products include Zoom Meetings for video conferencing, Zoom Team Chat, Zoom Phone, Zoom Rooms and tools for webinars and online events. The company also offers Zoom Contact Center and other services designed to support customer interactions and workplace collaboration. Founded in 2011 by Eric Yuan, Zoom became widely known for its video-conferencing service. The company, formerly known as Zoom Video Communications, adopted the name Zoom Communications in 2024 as it expanded its offerings beyond video meetings.