Zoom Video Communications Target of Unusually Large Options Trading (NASDAQ:ZM)

10 Oct 2024, 19:32 by Danessa Lincoln · The Markets Daily

Zoom Video Communications, Inc. (NASDAQ:ZM – Get Free Report) was the recipient of unusually large options trading activity on Thursday. Traders bought 61,463 call options on the stock. This is an increase of 191% compared to the typical volume of 21,129 call options.

Zoom Video Communications Price Performance

Shares of Zoom Video Communications stock traded up $1.21 on Thursday, reaching $71.18. 3,620,110 shares of the company were exchanged, compared to its average volume of 3,292,187. Zoom Video Communications has a 1-year low of $55.06 and a 1-year high of $74.77. The company has a market cap of $22.01 billion, a P/E ratio of 26.02, a price-to-earnings-growth ratio of 5.92 and a beta of -0.04. The stock’s 50 day moving average price is $65.14 and its 200-day moving average price is $62.42.

Zoom Video Communications (NASDAQ:ZM – Get Free Report) last posted its quarterly earnings data on Wednesday, August 21st. The company reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.21 by $0.18. The business had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.15 billion. Zoom Video Communications had a return on equity of 10.77% and a net margin of 19.08%. The company’s revenue was up 2.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.55 earnings per share. On average, research analysts predict that Zoom Video Communications will post 2.74 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zoom Video Communications news, COO Aparna Bawa sold 10,332 shares of the firm’s stock in a transaction dated Thursday, July 18th. The shares were sold at an average price of $56.81, for a total transaction of $586,960.92. Following the completion of the sale, the chief operating officer now directly owns 1,978 shares in the company, valued at approximately $112,370.18. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, COO Aparna Bawa sold 10,332 shares of Zoom Video Communications stock in a transaction that occurred on Thursday, July 18th. The shares were sold at an average price of $56.81, for a total value of $586,960.92. Following the completion of the sale, the chief operating officer now directly owns 1,978 shares in the company, valued at $112,370.18. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eric S. Yuan sold 2,420 shares of Zoom Video Communications stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $56.12, for a total transaction of $135,810.40. Following the completion of the sale, the chief executive officer now owns 90,354 shares of the company’s stock, valued at $5,070,666.48. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 66,255 shares of company stock worth $4,200,495 in the last three months. 10.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Zoom Video Communications by 3.2% in the fourth quarter. Vanguard Group Inc. now owns 23,417,464 shares of the company’s stock valued at $1,683,950,000 after purchasing an additional 721,923 shares during the last quarter. AQR Capital Management LLC grew its holdings in Zoom Video Communications by 78.5% in the second quarter. AQR Capital Management LLC now owns 5,731,354 shares of the company’s stock valued at $337,233,000 after purchasing an additional 2,520,987 shares during the last quarter. Pacer Advisors Inc. grew its holdings in Zoom Video Communications by 96.7% in the second quarter. Pacer Advisors Inc. now owns 5,246,938 shares of the company’s stock valued at $310,566,000 after purchasing an additional 2,579,720 shares during the last quarter. Acadian Asset Management LLC grew its holdings in Zoom Video Communications by 60.9% in the second quarter. Acadian Asset Management LLC now owns 4,902,397 shares of the company’s stock valued at $290,153,000 after purchasing an additional 1,855,679 shares during the last quarter. Finally, FIL Ltd grew its holdings in Zoom Video Communications by 1.3% in the fourth quarter. FIL Ltd now owns 3,069,797 shares of the company’s stock valued at $220,749,000 after purchasing an additional 40,456 shares during the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the stock. Needham & Company LLC reaffirmed a “hold” rating on shares of Zoom Video Communications in a report on Thursday, August 22nd. UBS Group raised shares of Zoom Video Communications to a “hold” rating in a report on Friday, July 26th. Rosenblatt Securities reissued a “buy” rating and issued a $78.00 target price on shares of Zoom Video Communications in a report on Friday, October 4th. Benchmark boosted their target price on shares of Zoom Video Communications from $83.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of Zoom Video Communications from $71.00 to $75.00 and gave the stock a “hold” rating in a report on Friday, August 23rd. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $75.05.

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Zoom Video Communications Company Profile

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