Investors Buy Large Volume of Call Options on Zoom Communications (NASDAQ:ZM)

Zoom Communications, Inc. (NASDAQ:ZM) saw some unusual options trading activity on Tuesday. Stock traders purchased 57,201 call options on the company. This represents an increase of 279% compared to the typical daily volume of 15,087 call options.

Zoom Communications Trading Up 14.7%

Shares of Zoom Communications stock traded up $11.58 during trading hours on Tuesday, reaching $90.18. 7,757,037 shares of the company’s stock were exchanged, compared to its average volume of 2,829,286. The stock has a market cap of $27.28 billion, a P/E ratio of 23.82, a P/E/G ratio of 10.73 and a beta of 0.79. The company has a 50 day moving average of $82.59 and a two-hundred day moving average of $79.66. Zoom Communications has a fifty-two week low of $64.41 and a fifty-two week high of $91.04.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, topping the consensus estimate of $1.44 by $0.08. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.21 billion. Zoom Communications had a return on equity of 11.91% and a net margin of 24.99%.The business’s quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.38 EPS. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS. Q4 2026 guidance at 1.480-1.490 EPS. As a group, analysts expect that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

ZM has been the topic of several analyst reports. JMP Securities reissued a “market perform” rating on shares of Zoom Communications in a research note on Thursday, September 18th. Wells Fargo & Company began coverage on shares of Zoom Communications in a research report on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 price target on the stock. Benchmark boosted their price objective on shares of Zoom Communications from $102.00 to $110.00 and gave the company a “buy” rating in a report on Thursday, September 18th. KeyCorp reduced their price target on shares of Zoom Communications from $73.00 to $69.00 and set an “underweight” rating on the stock in a research report on Friday, August 22nd. Finally, Dbs Bank upgraded Zoom Communications to a “moderate buy” rating in a research report on Tuesday, September 16th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $93.13.

Insider Buying and Selling

In related news, CFO Michelle Chang sold 33,956 shares of the stock in a transaction that occurred on Friday, October 10th. The shares were sold at an average price of $82.00, for a total value of $2,784,392.00. Following the transaction, the chief financial officer directly owned 20,539 shares in the company, valued at $1,684,198. This represents a 62.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Velchamy Sankarlingam sold 7,660 shares of the company’s stock in a transaction on Friday, October 10th. The shares were sold at an average price of $82.00, for a total transaction of $628,120.00. Following the sale, the insider owned 132,795 shares of the company’s stock, valued at $10,889,190. The trade was a 5.45% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 389,373 shares of company stock worth $32,311,579. 10.78% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently modified their holdings of ZM. Norges Bank acquired a new position in Zoom Communications during the second quarter worth approximately $539,998,000. AQR Capital Management LLC lifted its holdings in Zoom Communications by 23.4% during the 3rd quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock worth $699,357,000 after purchasing an additional 1,607,253 shares during the last quarter. Acadian Asset Management LLC boosted its stake in Zoom Communications by 41.1% in the 2nd quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company’s stock valued at $293,909,000 after purchasing an additional 1,097,333 shares during the period. Two Sigma Investments LP bought a new stake in Zoom Communications in the 3rd quarter valued at about $86,709,000. Finally, Vanguard Group Inc. grew its position in shares of Zoom Communications by 4.0% during the 3rd quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock worth $2,139,852,000 after purchasing an additional 986,164 shares in the last quarter. 66.54% of the stock is owned by institutional investors.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.