Federated Hermes Inc. Decreases Stock Position in Zoom Communications, Inc. $ZM

Federated Hermes Inc. trimmed its position in shares of Zoom Communications, Inc. (NASDAQ:ZM) by 64.5% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 222,926 shares of the company’s stock after selling 404,814 shares during the quarter. Federated Hermes Inc. owned 0.07% of Zoom Communications worth $17,384,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of the company. SouthState Corp bought a new stake in shares of Zoom Communications in the 1st quarter worth about $25,000. Elevation Point Wealth Partners LLC purchased a new stake in Zoom Communications in the 2nd quarter worth about $27,000. REAP Financial Group LLC lifted its stake in Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock worth $28,000 after purchasing an additional 229 shares during the last quarter. GKV Capital Management Co. Inc. bought a new stake in Zoom Communications in the first quarter worth about $31,000. Finally, FNY Investment Advisers LLC purchased a new position in shares of Zoom Communications during the second quarter valued at approximately $31,000. Institutional investors own 66.54% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Mizuho increased their price target on Zoom Communications from $95.00 to $100.00 and gave the stock an “outperform” rating in a report on Tuesday, August 26th. Benchmark increased their target price on Zoom Communications from $102.00 to $110.00 and gave the stock a “buy” rating in a research note on Thursday, September 18th. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Cantor Fitzgerald restated a “neutral” rating and issued a $87.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Zoom Communications in a research note on Monday. Eleven equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Zoom Communications currently has an average rating of “Hold” and an average target price of $92.43.

Zoom Communications Price Performance

ZM stock opened at $88.05 on Thursday. Zoom Communications, Inc. has a 1-year low of $64.41 and a 1-year high of $91.04. The business has a 50-day moving average price of $83.12 and a 200 day moving average price of $79.98. The company has a market capitalization of $26.07 billion, a P/E ratio of 17.13, a PEG ratio of 7.94 and a beta of 0.81.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The company had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same period in the prior year, the business earned $1.38 EPS. The firm’s quarterly 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 and its Q4 2026 guidance at 1.480-1.490 EPS. On average, analysts anticipate that Zoom Communications, Inc. will post 2.93 earnings per share for the current fiscal year.

Insider Activity at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,660 shares of Zoom Communications stock in a transaction on Friday, October 10th. The stock was sold at an average price of $82.00, for a total value of $628,120.00. Following the transaction, the insider directly owned 132,795 shares in the company, valued at approximately $10,889,190. This trade represents a 5.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Santiago Subotovsky sold 2,475 shares of the business’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $86.05, for a total value of $212,973.75. Following the completion of the transaction, the director directly owned 147,694 shares of the company’s stock, valued at approximately $12,709,068.70. The trade was a 1.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 386,778 shares of company stock valued at $32,097,329 over the last quarter. 11.51% of the stock is owned by insiders.

Zoom Communications Company Profile

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.