Zoom Communications (NASDAQ:ZM) Stock Price Down 4.3% – Here’s Why

Shares of Zoom Communications, Inc. (NASDAQ:ZM) dropped 4.3% on Tuesday . The company traded as low as $99.66 and last traded at $101.12. Approximately 1,071,537 shares were traded during 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

A number of research analysts have commented on the stock. Morgan Stanley increased their price objective on shares of Zoom Communications from $92.00 to $105.00 and gave the company an “equal weight” rating in a research note on Friday. Royal Bank Of Canada upped their target price on shares of Zoom Communications from $110.00 to $130.00 and gave the company an “outperform” rating in a research note on Friday. KeyCorp raised shares of Zoom Communications from an “underweight” rating to a “sector weight” rating in a research report on Friday. Citigroup boosted their price objective on Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a report on Friday, May 15th. Finally, Robert W. Baird increased their target price on Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a report on Tuesday, May 19th. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $107.95.

Zoom Communications Stock Performance

The company’s fifty day moving average price is $89.35 and its 200 day moving average price is $86.88. The firm has a market capitalization of $29.81 billion, a price-to-earnings ratio of 14.85, a price-to-earnings-growth ratio of 6.04 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 12.06%. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter last year, the company posted $1.43 earnings per share. Zoom Communications’s revenue was up 5.5% on a year-over-year basis. 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 news, CEO Eric S. Yuan sold 69,923 shares of the company’s stock in a transaction dated 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 completion of the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the sale, the director directly owned 142,882 shares in the company, valued at approximately $15,228,363.56. This trade represents a 3.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 144,329 shares of company stock worth $12,364,989. 11.51% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

Several large investors have recently made changes to their positions in the company. Norges Bank bought a new position in Zoom Communications in the 4th quarter worth approximately $509,788,000. AQR Capital Management LLC grew its stake in shares of Zoom Communications by 43.9% in 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 in the last quarter. Atreides Management LP bought a new position in shares of Zoom Communications in the first quarter worth $105,761,000. Two Sigma Investments LP acquired a new position in shares of Zoom Communications during the third quarter valued at $86,709,000. Finally, Vanguard Group Inc. raised its stake in shares of Zoom Communications by 4.0% during the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after purchasing an additional 1,029,623 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

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.