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

Zoom Communications, Inc. (NASDAQ:ZM) saw unusually large options trading activity on Friday. Stock traders purchased 34,966 call options on the stock. This is an increase of approximately 76% compared to the average daily volume of 19,873 call options.

Analyst Ratings Changes

Several research firms have recently issued reports on ZM. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, May 1st. Piper Sandler raised their price target on shares of Zoom Communications from $91.00 to $107.00 and gave the company a “neutral” rating in a report on Friday. Mizuho raised their price target on shares of Zoom Communications from $100.00 to $120.00 and gave the company an “outperform” rating in a report on Friday. KeyCorp raised shares of Zoom Communications from an “underweight” rating to a “sector weight” rating in a report on Friday. Finally, Citigroup raised their price target on shares of Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a report on Friday, May 15th. Fourteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $105.05.

Zoom Communications Price Performance

ZM traded up $11.36 during trading hours on Friday, reaching $108.11. 4,715,889 shares of the stock traded hands, compared to its average volume of 4,398,823. The firm’s fifty day simple moving average is $88.14 and its two-hundred day simple moving average is $86.59. The company has a market cap of $31.86 billion, a price-to-earnings ratio of 17.46, a PEG ratio of 5.69 and a beta of 1.00. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $113.73.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.41 by $0.14. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The business’s revenue was up 5.5% on a year-over-year basis. During the same period last year, the business earned $1.43 EPS. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, research analysts predict that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Aparna Bawa sold 12,886 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the completion of the sale, the chief operating officer owned 1,978 shares of the company’s stock, valued at $173,312.36. This represents a 86.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the sale, the director directly owned 142,882 shares of the company’s stock, valued at $15,228,363.56. The trade was a 3.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Advocate Investing Services LLC bought a new position in Zoom Communications during the 4th quarter valued at $26,000. Strive Financial Group LLC bought a new position in Zoom Communications during the 4th quarter valued at $27,000. Toth Financial Advisory Corp bought a new position in Zoom Communications during the 4th quarter valued at $28,000. Rexford Capital Inc. boosted its stake 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 acquiring an additional 122 shares during the last quarter. Finally, Root Financial Partners LLC bought a new position in Zoom Communications during the 3rd quarter valued at $33,000. 66.54% of the stock is currently owned by institutional investors.

Key Zoom Communications News

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

• Positive Sentiment: Rosenblatt raised its price target to $130 and reiterated a buy rating, citing upside from strong execution and AI-driven growth.
• Positive Sentiment: Needham lifted its target to $130 and kept a buy rating following the earnings beat.
• Positive Sentiment: BTIG increased its target to $125 and maintained a buy rating.
• Positive Sentiment: Mizuho raised its target to $120 and kept an outperform rating.
• Positive Sentiment: Benchmark also raised its target, reflecting broader analyst optimism after the quarter.
• Positive Sentiment: KeyCorp upgraded Zoom from underweight to sector weight, indicating a more constructive view on the stock.
• Neutral Sentiment: Piper Sandler raised its target but kept a neutral rating, suggesting some upside is already priced in.

Zoom Communications Company Profile

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.