Traders Buy Large Volume of Call Options on Zoom Communications (NASDAQ:ZM)

Zoom Communications, Inc. (NASDAQ:ZM) saw some unusual options trading activity on Monday. Stock traders bought 33,095 call options on the stock. This represents an increase of approximately 154% compared to the average volume of 13,020 call options.

Zoom Communications Price Performance

NASDAQ:ZM traded up $9.56 during mid-day trading on Monday, reaching $95.34. The stock had a trading volume of 5,532,038 shares, compared to its average volume of 2,873,648. The company has a market capitalization of $28.23 billion, a price-to-earnings ratio of 18.56, a price-to-earnings-growth ratio of 7.71 and a beta of 0.87. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $95.83. The stock’s 50 day simple moving average is $85.27 and its two-hundred day simple moving average is $81.66.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Monday, November 24th. The company reported $1.52 EPS for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The company had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.Zoom Communications’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter last year, the business posted $1.38 EPS. 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. Sell-side analysts anticipate that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Buying and Selling

In other Zoom Communications news, CEO Eric S. Yuan sold 73,378 shares of the stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $86.15, for a total transaction of $6,321,514.70. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Aparna Bawa sold 12,137 shares of the business’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $81.37, for a total transaction of $987,587.69. Following the completion of the sale, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at approximately $160,949.86. The trade was a 85.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 317,745 shares of company stock valued at $27,002,595 in the last ninety days. Company insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Elevation Point Wealth Partners LLC acquired a new position in Zoom Communications during the 2nd quarter worth $27,000. REAP Financial Group LLC grew its position in Zoom Communications by 181.7% in 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. Toth Financial Advisory Corp acquired a new position in Zoom Communications during the 4th quarter valued at about $28,000. FNY Investment Advisers LLC bought a new stake in shares of Zoom Communications during the 2nd quarter worth about $31,000. Finally, Root Financial Partners LLC acquired a new stake in shares of Zoom Communications in the 3rd quarter worth approximately $33,000. 66.54% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have weighed in on ZM shares. Wall Street Zen lowered shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a report on Saturday, November 15th. Jefferies Financial Group upped their price objective on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a report on Tuesday, November 25th. BTIG Research began coverage on Zoom Communications in a research note on Tuesday, December 16th. They set a “buy” rating and a $105.00 target price for the company. Citigroup raised Zoom Communications from a “neutral” rating to a “buy” rating and upped their price target for the company from $94.00 to $106.00 in a research note on Monday, January 12th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. One investment 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. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $93.82.

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.