Zoom Communications, Inc. (NASDAQ:ZM) Short Interest Down 18.0% in January

Zoom Communications, Inc. (NASDAQ:ZM) was the target of a large decline in short interest in January. As of January 15th, there was short interest totaling 5,494,131 shares, a decline of 18.0% from the December 31st total of 6,702,200 shares. Approximately 2.1% of the shares of the stock are sold short. Based on an average daily trading volume, of 2,627,619 shares, the days-to-cover ratio is presently 2.1 days. Based on an average daily trading volume, of 2,627,619 shares, the days-to-cover ratio is presently 2.1 days. Approximately 2.1% of the shares of the stock are sold short.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Royal Bank Of Canada reissued an “outperform” rating and set a $100.00 price target on shares of Zoom Communications in a research note on Tuesday, November 25th. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $87.00 price objective on shares of Zoom Communications in a research note on Tuesday, November 25th. Wall Street Zen cut Zoom Communications from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 15th. Piper Sandler raised their price target on Zoom Communications from $85.00 to $91.00 and gave the stock a “neutral” rating in a research report on Monday, January 5th. Finally, UBS Group began coverage on Zoom Communications in a research report on Monday, October 20th. They issued a “neutral” rating and a $85.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zoom Communications presently has a consensus rating of “Moderate Buy” and a consensus target price of $93.82.

Insider Activity

In related news, Director Santiago Subotovsky sold 2,475 shares of the business’s 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 completion of the transaction, the director owned 145,219 shares of the company’s stock, valued at approximately $12,490,286.19. The trade was a 1.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Michelle Chang sold 8,417 shares of the firm’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $86.54, for a total transaction of $728,407.18. Following the completion of the transaction, the chief financial officer directly owned 25,482 shares of the company’s stock, valued at approximately $2,205,212.28. The trade was a 24.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 241,892 shares of company stock valued at $20,472,809. 10.78% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Toth Financial Advisory Corp purchased a new stake in Zoom Communications in the fourth quarter worth about $28,000. Elevation Point Wealth Partners LLC purchased a new stake in shares of Zoom Communications in the 2nd quarter worth approximately $27,000. REAP Financial Group LLC increased its position in Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after buying an additional 229 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in Zoom Communications during the second quarter valued at $31,000. Finally, Root Financial Partners LLC bought a new stake in Zoom Communications in the third quarter worth $33,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications Trading Down 4.4%

Shares of NASDAQ ZM opened at $88.73 on Wednesday. The firm has a fifty day simple moving average of $87.00 and a two-hundred day simple moving average of $82.58. Zoom Communications has a 12 month low of $64.41 and a 12 month high of $97.58. The firm has a market capitalization of $26.27 billion, a PE ratio of 17.26, a price-to-earnings-growth ratio of 8.32 and a beta of 0.90.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The company 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 33.17% and a return on equity of 12.20%. Zoom Communications’s revenue was up 4.4% on a year-over-year basis. During the same period in the prior year, the firm 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, sell-side analysts predict that Zoom Communications will post 2.93 earnings per share for the current year.

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.