Zoom Communications (NASDAQ:ZM) Announces Earnings Results, Beats Expectations By $0.14 EPS

Zoom Communications (NASDAQ:ZM) released its quarterly earnings results on Thursday. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.14, FiscalAI reports. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%.

Zoom Communications Trading Down 2.7%

Shares of ZM stock traded down $2.67 during trading hours on Thursday, reaching $96.75. 8,076,156 shares of the stock were exchanged, compared to its average volume of 4,365,550. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56. The company’s 50-day moving average price is $87.73 and its 200-day moving average price is $86.52. The firm has a market capitalization of $28.51 billion, a price-to-earnings ratio of 15.60, a price-to-earnings-growth ratio of 5.57 and a beta of 1.00.

Insider Activity

In other news, insider Velchamy Sankarlingam sold 7,645 shares of the company’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total value of $653,188.80. Following the transaction, the insider directly owned 141,971 shares in the company, valued at approximately $12,130,002.24. This represents a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the company’s stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $2,988,571.12. The trade was a 65.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 144,329 shares of company stock worth $12,364,989 in the last 90 days. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Kestra Advisory Services LLC grew its holdings in shares of Zoom Communications by 2.0% in the fourth quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock worth $512,000 after purchasing an additional 116 shares during the last quarter. Daiwa Securities Group Inc. grew its holdings in shares of Zoom Communications by 0.7% in the second quarter. Daiwa Securities Group Inc. now owns 24,395 shares of the company’s stock worth $1,902,000 after purchasing an additional 181 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its holdings in shares of Zoom Communications by 83.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock worth $38,000 after purchasing an additional 200 shares during the last quarter. Principal Securities Inc. grew its holdings in shares of Zoom Communications by 8.1% in the fourth quarter. Principal Securities Inc. now owns 3,053 shares of the company’s stock worth $263,000 after purchasing an additional 230 shares during the last quarter. Finally, Utah Retirement Systems grew its holdings in shares of Zoom Communications by 0.6% in the fourth quarter. Utah Retirement Systems now owns 43,622 shares of the company’s stock worth $3,764,000 after purchasing an additional 245 shares during the last quarter. 66.54% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

ZM has been the topic of a number of recent research reports. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price target on the stock in a research note on Thursday, February 5th. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 1st. Sanford C. Bernstein decreased their price target on shares of Zoom Communications from $90.00 to $88.00 and set a “market perform” rating on the stock in a research note on Thursday, February 26th. Argus raised shares of Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a research note on Friday, March 13th. Fourteen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Zoom Communications presently has a consensus rating of “Hold” and an average price target of $97.57.

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.