Aberdeen Group plc increased its stake in Zoom Communications, Inc. (NASDAQ:ZM) by 192% during the third quarter, according to a recent filing with the Securities and Exchange Commission.
The firm now holds 936,891 shares of the company, representing a total investment of $85,042,000.
This move by Aberdeen Group follows a series of recent adjustments to holdings by other institutional investors. Bank of America Corp DE raised its position by 50.5% in the first quarter, now owning 1,767,728 shares valued at approximately $142,108,000. Similarly, the Bank of New York Mellon Corp increased its stake by 44.5%, bringing its total ownership to 1,411,745 shares worth $113,490,000. Institutional investors and hedge funds currently control 66.54% of the company’s stock.
Company insiders have also adjusted their positions in the firm. On October 12, insider Velchamy Sankarlingam sold 7,645 shares at an average price of $99.26, totaling $758,842.70. This transaction, executed under a pre-arranged Rule 10b5-1 trading plan, was intended to cover tax withholding obligations associated with the vesting of equity awards, as detailed in an official SEC filing.
Director Santiago Subotovsky sold 2,637 shares on November 5 at an average price of $89.56, totaling $236,169.72. This sale, also conducted under a Rule 10b5-1 plan, reduced the director’s holdings to 113,875 shares. Over the last quarter, company insiders sold a total of 83,582 shares valued at $8,054,735, and they currently own 8.83% of the company’s stock.
Zoom Communications reported earnings of $1.55 per share for the quarter ending August 25, exceeding the consensus estimate of $1.48. Revenue for the period reached $1.28 billion, marking a 4.9% increase compared to the same quarter in the previous year. The company has set its fiscal year 2027 guidance at 6.080–6.120 EPS, with Q3 2027 guidance projected between 1.460 and 1.480 EPS.
Equity research analysts maintain a moderate outlook on the stock. On October 21, Cantor Fitzgerald reiterated a "neutral" rating with a $104.00 price target. On the same day, UBS Group adjusted its price target from $115.00 to $112.00, while BTIG Research maintained a "buy" rating with a $125.00 target. According to MarketBeat, the stock currently holds an average rating of "Moderate Buy" and an average price target of $114.48.
Institutional investors and hedge funds own 66.54% of the company’s outstanding shares.
Why did company insiders sell shares in October and November to cover tax withholding obligations related to the vesting of equity awards? The sales by Velchamy Sankarlingam and Santiago Subotovsky were executed under pre-arranged Rule 10b5-1 trading plans. These transactions were primarily designed to cover tax withholding obligations related to the vesting of equity awards, as noted in SEC disclosures.
Zoom Communications has established its fiscal year 2027 guidance at 6.080–6.120 EPS and its third-quarter 2027 guidance at 1.460–1.480 EPS.
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