Traders Buy High Volume of Zoom Communications Call Options (NASDAQ:ZM)

Zoom Communications, Inc. (NASDAQ:ZM) was the recipient of unusually large options trading on Monday. Stock traders acquired 33,095 call options on the company. This represents an increase of 154% compared to the typical volume of 13,020 call options.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,417 shares of Zoom Communications stock in a transaction on Monday, January 12th. The stock was sold at an average price of $86.54, for a total transaction of $728,407.18. Following the transaction, the chief financial officer directly owned 25,482 shares in the company, valued at approximately $2,205,212.28. This trade represents a 24.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Eric S. Yuan sold 12,100 shares of the business’s stock in a transaction on Wednesday, January 14th. The stock was sold at an average price of $83.46, for a total value of $1,009,866.00. The SEC filing for this sale provides additional information. Insiders sold a total of 317,745 shares of company stock valued at $27,002,595 over the last three months. 10.78% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ZM. Toth Financial Advisory Corp acquired a new position in Zoom Communications in the fourth quarter valued at about $28,000. Elevation Point Wealth Partners LLC acquired a new position in Zoom Communications in the second quarter valued at about $27,000. REAP Financial Group LLC raised its position in shares of Zoom Communications by 181.7% in the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after acquiring an additional 229 shares during the period. FNY Investment Advisers LLC bought a new stake in Zoom Communications in the second quarter valued at approximately $31,000. Finally, Root Financial Partners LLC acquired a new stake in Zoom Communications in the third quarter worth $33,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ZM. Wall Street Zen cut shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 15th. BTIG Research assumed coverage on Zoom Communications in a research note on Tuesday, December 16th. They issued a “buy” rating and a $105.00 price target on the stock. Morgan Stanley upped their price objective on shares of Zoom Communications from $85.00 to $92.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 25th. Zacks Research raised shares of Zoom Communications from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, December 31st. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $90.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zoom Communications currently has an average rating of “Moderate Buy” and a consensus target price of $93.82.

Zoom Communications Trading Up 11.1%

NASDAQ ZM traded up $9.56 during trading on Monday, reaching $95.34. The company’s stock had a trading volume of 5,532,038 shares, compared to its average volume of 2,873,648. The stock has a market capitalization of $28.23 billion, a PE ratio of 18.56, a PEG ratio of 7.71 and a beta of 0.87. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $95.83. The business has a 50-day moving average price of $85.27 and a 200-day moving average price of $81.66.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The firm had revenue of $1.23 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same period in the prior year, the company posted $1.38 earnings per share. Zoom Communications’s revenue for the quarter was up 4.4% on a year-over-year basis. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its 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 year.

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.