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

Zoom Communications, Inc. (NASDAQ:ZM) was the recipient of unusually large options trading on Tuesday. Stock traders acquired 57,201 call options on the stock. This represents an increase of 279% compared to the typical volume of 15,087 call options.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM traded up $11.58 during trading on Tuesday, reaching $90.18. The stock had a trading volume of 7,757,037 shares, compared to its average volume of 2,829,286. Zoom Communications has a 52 week low of $64.41 and a 52 week high of $91.04. The firm’s fifty day moving average is $82.59 and its 200 day moving average is $79.66. The stock has a market cap of $27.28 billion, a price-to-earnings ratio of 23.82, a P/E/G ratio of 10.73 and a beta of 0.79.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. Zoom Communications’s quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.38 earnings per share. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS. Q4 2026 guidance at 1.480-1.490 EPS. On average, research analysts forecast that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insider Transactions at Zoom Communications

In other news, COO Aparna Bawa sold 10,528 shares of Zoom Communications stock in a transaction on Thursday, October 16th. The stock was sold at an average price of $79.77, for a total value of $839,818.56. Following the transaction, the chief operating officer owned 1,978 shares in the company, valued at approximately $157,785.06. This trade represents a 84.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Eric S. Yuan sold 73,378 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $82.73, for a total value of $6,070,561.94. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 389,373 shares of company stock worth $32,311,579. 10.78% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZM. Vanguard Group Inc. increased its holdings in shares of Zoom Communications by 4.0% during the third quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock valued at $2,139,852,000 after acquiring an additional 986,164 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Zoom Communications by 23.4% in the third quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock valued at $699,357,000 after buying an additional 1,607,253 shares in the last quarter. State Street Corp grew its holdings in shares of Zoom Communications by 0.4% during the third quarter. State Street Corp now owns 7,219,148 shares of the company’s stock valued at $595,580,000 after buying an additional 29,647 shares during the last quarter. Norges Bank acquired a new position in Zoom Communications during the 2nd quarter valued at about $539,998,000. Finally, T. Rowe Price Investment Management Inc. boosted its stake in Zoom Communications by 0.6% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 6,421,733 shares of the company’s stock valued at $473,732,000 after purchasing an additional 36,210 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Piper Sandler reiterated a “neutral” rating and set a $85.00 price target on shares of Zoom Communications in a report on Friday, August 22nd. UBS Group initiated coverage on Zoom Communications in a research report on Monday, October 20th. They issued a “neutral” rating and a $85.00 target price for the company. Royal Bank Of Canada restated an “outperform” rating and set a $100.00 price target on shares of Zoom Communications in a report on Tuesday. Zacks Research downgraded Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Monday, November 10th. Finally, Needham & Company LLC restated a “buy” rating and issued a $100.00 price target on shares of Zoom Communications in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $93.13.

About Zoom Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.