Insider Selling: Zoom Communications (NASDAQ:ZM) Director Sells $383,334.72 in Stock

Zoom Communications, Inc. (NASDAQ:ZM) Director Santiago Subotovsky sold 3,812 shares of the firm’s stock in a transaction on Wednesday, October 21st. The stock was sold at an average price of $100.56, for a total value of $383,334.72. Following the completion of the transaction, the director directly owned 117,974 shares in the company, valued at approximately $11,863,465.44. This represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Santiago Subotovsky also recently made the following trade(s):

• On Thursday, October 22nd, Santiago Subotovsky sold 20 shares of Zoom Communications stock. The shares were sold at an average price of $100.43, for a total value of $2,008.60.
• On Monday, October 5th, Santiago Subotovsky sold 2,637 shares of Zoom Communications stock. The shares were sold at an average price of $93.74, for a total value of $247,192.38.
• On Tuesday, September 8th, Santiago Subotovsky sold 2,637 shares of Zoom Communications stock. The stock was sold at an average price of $96.63, for a total value of $254,813.31.
• On Tuesday, August 4th, Santiago Subotovsky sold 7,911 shares of Zoom Communications stock. The stock was sold at an average price of $101.33, for a total value of $801,621.63.

Zoom Communications Stock Performance

Shares of NASDAQ ZM traded down $0.43 during trading on Friday, hitting $95.77. The company had a trading volume of 3,039,273 shares, compared to its average volume of 3,902,601. Zoom Communications, Inc. has a 12 month low of $70.70 and a 12 month high of $114.74. The firm has a market capitalization of $27.94 billion, a P/E ratio of 8.87, a price-to-earnings-growth ratio of 4.59 and a beta of 1.03. The stock has a 50 day simple moving average of $96.50 and a 200 day simple moving average of $95.10.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The firm’s revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the company posted $1.53 EPS. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. As a group, analysts predict that Zoom Communications, Inc. will post 4.27 EPS for the current year.

Analyst Ratings Changes

ZM has been the subject of a number of recent analyst reports. Sanford C. Bernstein reiterated a “market perform” rating and issued a $108.00 price target on shares of Zoom Communications in a research report on Wednesday, August 26th. Cantor Fitzgerald restated a “neutral” rating and set a $104.00 price objective on shares of Zoom Communications in a research report on Wednesday. Needham & Company LLC restated a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Thursday. KeyCorp restated a “sector weight” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Finally, Jefferies Financial Group dropped their target price on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $114.48.

Key Stories Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ZM. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in Zoom Communications by 0.4% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock worth $2,380,000 after purchasing an additional 107 shares in the last quarter. Fortitude Family Office LLC grew its holdings in Zoom Communications by 27.2% during the 3rd quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock valued at $48,000 after buying an additional 114 shares in the last quarter. 3Chopt Investment Partners LLC grew its holdings in Zoom Communications by 1.6% during the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after buying an additional 119 shares in the last quarter. Rexford Capital Inc. grew its holdings in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after buying an additional 122 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. raised its position in shares of Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after buying an additional 200 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

About Zoom Communications

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.