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 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 Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a report on Friday, February 13th. KeyCorp upgraded Zoom Communications from an “underweight” rating to a “sector weight” rating in a research report on Friday. BTIG Research lifted their price target on Zoom Communications from $100.00 to $125.00 and gave the company a “buy” rating in a research report on Friday. Wall Street Zen downgraded Zoom Communications from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Finally, Needham & Company LLC raised their target price on Zoom Communications from $100.00 to $130.00 and gave the company a “buy” rating in a research note on Friday. Fourteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $107.95.

Zoom Communications Trading Down 4.2%

The stock has a fifty day moving average of $89.35 and a 200-day moving average of $86.88. The firm has a market capitalization of $29.81 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 6.04 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results 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. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 12.06% and a net margin of 41.99%.Zoom Communications’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter last year, the company posted $1.43 EPS. 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, equities research analysts forecast that Zoom Communications, Inc. will post 3.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total transaction of $653,188.80. Following the transaction, the insider directly owned 141,971 shares in the company, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the sale, the chief financial officer directly owned 30,467 shares in the company, valued at approximately $2,477,576.44. This trade represents a 21.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 144,329 shares of company stock valued at $12,364,989 over the last 90 days. 11.51% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zoom Communications

Several hedge funds have recently bought and sold shares of ZM. Kestra Advisory Services LLC grew its stake in Zoom Communications by 2.0% during the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock valued at $512,000 after acquiring an additional 116 shares in the last quarter. 3Chopt Investment Partners LLC lifted its position in shares of Zoom Communications by 1.6% in the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock worth $592,000 after purchasing an additional 119 shares in the last quarter. Rexford Capital Inc. boosted its holdings in shares of Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after purchasing an additional 122 shares during the period. New York State Teachers Retirement System grew its position in Zoom Communications by 0.5% during the fourth quarter. New York State Teachers Retirement System now owns 24,263 shares of the company’s stock valued at $2,094,000 after purchasing an additional 123 shares in the last quarter. Finally, Root Financial Partners LLC increased its stake in Zoom Communications by 33.5% in the 4th quarter. Root Financial Partners LLC now owns 542 shares of the company’s stock valued at $47,000 after buying an additional 136 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.