Zoom Video Communications CEO's Stock Sale Exceeds $6.9 Million

On December 4th, Eric S. Yuan, the CEO of Zoom Video Communications, Inc. (NASDAQ:ZM), sold 83,333 shares of the company's stock. The shares were sold at an average price of $83.50, resulting in a total value of $6,958,305.50 from the transaction. This sale was documented in a legal filing with the SEC, which is accessible on their website.

Zoom Video Communications Stock Performance

During trading on the following Friday, Zoom's stock increased by 3.4%, reaching a price of $86.22. The trading volume for that day was approximately 3,336,804 shares, which is slightly lower than the average trading volume of 3,343,853 shares. Over the past year, the stock has fluctuated between a low of $55.06 and a high of $92.80. Zoom Video Communications currently has a market capitalization of $26.43 billion and a price-to-earnings ratio (P/E) of 28.74. Additionally, it has a P/E to growth (P/E/G) ratio of 5.28 and a beta of -0.03, which indicates lower volatility compared to the broader market. The stock's 50-day moving average is $76.37, while its 200-day moving average stands at $66.83.

Recent Analyst Ratings

Several equity analysts have recently published reports regarding Zoom’s stock. For instance, on August 22nd, Robert W. Baird reduced their price target for the stock from $84.00 to $77.00 while maintaining an "outperform" rating. Benchmark, on the other hand, raised their price target from $85.00 to $97.00 and continued to rate the stock as a "buy" on November 26th. Furthermore, Needham & Company LLC reiterated a "hold" rating on October 11th. Morgan Stanley also increased their price target from $68.00 to $86.00 and maintained an "equal weight" rating in a report published on November 13th. Wells Fargo & Company adjusted their price target from $60.00 to $70.00 and categorized the stock as "underweight" on the same day as Benchmark. Overall, the stock has received two sell ratings, fifteen hold ratings, seven buy ratings, and one strong buy rating, with an average consensus rating of "Hold" and a target price of $85.19 according to MarketBeat.

Institutional Investment Activity

Recently, several institutional investors have adjusted their stakes in Zoom Video Communications. Pacer Advisors Inc. increased their holdings in the second quarter by 96.7%, acquiring an additional 2,579,720 shares, now totaling 5,246,938 shares worth $310,566,000. Similarly, AQR Capital Management LLC grew its stake by 78.5% during the same quarter, owning 5,731,354 shares valued at $337,233,000. FMR LLC also raised its position by 23.8% in the third quarter, now holding 12,444,887 shares worth $867,906,000 after purchasing an additional 2,395,396 shares. Acadian Asset Management LLC increased their position by 60.9% in the second quarter. Lastly, Eagle Asset Management Inc. bought a new stake during the third quarter worth approximately $62,038,000. Currently, institutional investors own about 66.54% of the company's shares.

Company Overview

Zoom Video Communications, Inc. provides a unified communications platform that serves customers across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its offerings include Zoom Meetings, which enables HD video, voice, chat, and content sharing through various devices; Zoom Phone, an enterprise cloud-based phone system; and Zoom Chat, which facilitates messaging and content sharing across platforms.

Zoom, CEO, Stock