Zoom Communications Sees Unusually High Options Volume (NASDAQ:ZM)

Zoom Communications, Inc. (NASDAQ:ZM) was the recipient of some unusual options trading activity on Tuesday. Traders acquired 57,201 call options on the company. This represents an increase of 279% compared to the typical daily volume of 15,087 call options.

Zoom Communications Trading Up 9.8%

Shares of ZM opened at $86.34 on Wednesday. Zoom Communications has a 12-month low of $64.41 and a 12-month high of $91.04. The stock has a market cap of $26.12 billion, a P/E ratio of 16.80, a PEG ratio of 10.72 and a beta of 0.79. The company has a 50-day moving average of $82.61 and a two-hundred day moving average of $79.69.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data 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. Zoom Communications had a net margin of 33.17% and a return on equity of 12.33%. The business had revenue of $1.23 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same period last year, the company posted $1.38 EPS. The company’s revenue was up 4.4% on a year-over-year basis. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS. Q4 2026 guidance at 1.480-1.490 EPS. As a group, analysts forecast that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Michelle Chang sold 33,956 shares of Zoom Communications stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $82.00, for a total value of $2,784,392.00. Following the sale, the chief financial officer owned 20,539 shares of the company’s stock, valued at $1,684,198. The trade was a 62.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,660 shares of the business’s stock in a transaction dated Friday, October 10th. The stock was sold at an average price of $82.00, for a total transaction of $628,120.00. Following the transaction, the insider owned 132,795 shares in the company, valued at approximately $10,889,190. This trade represents a 5.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 389,373 shares of company stock worth $32,311,579 in the last ninety days. Insiders own 10.78% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently made changes to their positions in ZM. Vanguard Group Inc. boosted its stake 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 during the last quarter. AQR Capital Management LLC lifted its holdings in Zoom Communications by 23.4% in the 3rd quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock valued at $699,357,000 after purchasing an additional 1,607,253 shares in the last quarter. State Street Corp lifted its holdings in Zoom Communications by 0.4% in the 3rd quarter. State Street Corp now owns 7,219,148 shares of the company’s stock valued at $595,580,000 after purchasing an additional 29,647 shares in the last quarter. Norges Bank acquired a new stake in shares of Zoom Communications during the 2nd quarter worth about $539,998,000. Finally, T. Rowe Price Investment Management Inc. grew its holdings in shares of Zoom Communications by 0.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 6,421,733 shares of the company’s stock worth $473,732,000 after buying an additional 36,210 shares in the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have issued reports on ZM. Needham & Company LLC reissued a “buy” rating and set a $100.00 target price on shares of Zoom Communications in a research note on Tuesday. Wells Fargo & Company started coverage on Zoom Communications in a report on Tuesday, September 30th. They set an “equal weight” rating and a $90.00 price objective on the stock. Royal Bank Of Canada reiterated an “outperform” rating and issued a $100.00 price objective on shares of Zoom Communications in a research report on Tuesday. Citigroup boosted their target price on shares of Zoom Communications from $85.00 to $94.00 and gave the stock a “neutral” rating in a research report on Monday, November 17th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $90.00 price target on shares of Zoom Communications in a research note on Tuesday. Ten equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $92.43.

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.