Rakuten Investment Management Inc. Invests $719,000 in Zoom Communications, Inc. $ZM

Rakuten Investment Management Inc. purchased a new stake in shares of Zoom Communications, Inc. (NASDAQ:ZM) during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 8,719 shares of the company’s stock, valued at approximately $719,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Elevation Point Wealth Partners LLC purchased a new position in Zoom Communications during the second quarter valued at $27,000. REAP Financial Group LLC grew 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 worth $28,000 after buying an additional 229 shares during the period. FNY Investment Advisers LLC purchased a new stake in shares of Zoom Communications in the 2nd quarter worth about $31,000. Root Financial Partners LLC bought a new position in shares of Zoom Communications in the 3rd quarter worth about $33,000. Finally, Quent Capital LLC purchased a new position in Zoom Communications during the 3rd quarter valued at about $34,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ZM. Wedbush restated an “outperform” rating and issued a $95.00 price objective on shares of Zoom Communications in a report on Tuesday, November 25th. Wells Fargo & Company began coverage on Zoom Communications in a research note on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 price target on the stock. Jefferies Financial Group raised their price objective on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. Weiss Ratings reissued a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Finally, Piper Sandler increased their target price on Zoom Communications from $85.00 to $91.00 and gave the stock a “neutral” rating in a research note on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $93.82.

Insiders Place Their Bets

In other news, insider Velchamy Sankarlingam sold 7,568 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.55, for a total transaction of $655,010.40. Following the completion of the transaction, the insider directly owned 136,182 shares of the company’s stock, valued at $11,786,552.10. The trade was a 5.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $86.01, for a total transaction of $212,874.75. Following the transaction, the director owned 145,219 shares in the company, valued at approximately $12,490,286.19. This trade represents a 1.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 317,745 shares of company stock worth $27,002,595 in the last quarter. Insiders own 11.51% of the company’s stock.

Zoom Communications Trading Up 1.3%

ZM stock opened at $85.78 on Friday. The stock’s 50 day simple moving average is $85.27 and its 200 day simple moving average is $81.63. Zoom Communications, Inc. has a 12-month low of $64.41 and a 12-month high of $91.43. The stock has a market capitalization of $25.40 billion, a PE ratio of 16.69, a price-to-earnings-growth ratio of 7.71 and a beta of 0.87.

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 during the quarter, compared to analysts’ expectations of $1.21 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The company’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.38 earnings per share. 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. On average, research analysts predict that Zoom Communications, Inc. 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.