Traders Buy High Volume of Zoom Video Communications Put Options (NASDAQ:ZM)

Zoom Video Communications, Inc. (NASDAQ:ZM) was the recipient of unusually large options trading activity on Wednesday. Traders bought 111,754 put options on the company. This is an increase of approximately 266% compared to the typical volume of 30,516 put options.

Zoom Video Communications Trading Down 0.3 %

Shares of ZM traded down $0.20 during trading hours on Wednesday, reaching $59.08. 1,998,493 shares of the company’s stock traded hands, compared to its average volume of 3,330,319. The stock has a market cap of $18.17 billion, a PE ratio of 29.04 and a beta of -0.07. The firm’s 50 day simple moving average is $65.12 and its 200-day simple moving average is $66.12. Zoom Video Communications has a 12 month low of $58.87 and a 12 month high of $75.90.

Zoom Video Communications (NASDAQ:ZM) last issued its quarterly earnings results on Monday, February 26th. The company reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.42 by $0.34. The firm had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.13 billion. Zoom Video Communications had a return on equity of 9.68% and a net margin of 14.08%. As a group, analysts expect that Zoom Video Communications will post 2.15 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ZM. JPMorgan Chase & Co. cut their price target on Zoom Video Communications from $83.00 to $80.00 and set a “neutral” rating on the stock in a report on Tuesday, February 27th. Mizuho cut their price target on Zoom Video Communications from $100.00 to $90.00 and set a “buy” rating on the stock in a report on Tuesday, February 27th. Jefferies Financial Group assumed coverage on Zoom Video Communications in a report on Tuesday, March 19th. They set a “hold” rating and a $70.00 price target on the stock. Rosenblatt Securities reiterated a “neutral” rating and issued a $75.00 target price on shares of Zoom Video Communications in a report on Tuesday, March 26th. Finally, Piper Sandler increased their target price on Zoom Video Communications from $69.00 to $72.00 and gave the stock a “neutral” rating in a report on Friday, January 12th. Two equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $77.56.

Insider Transactions at Zoom Video Communications

In other news, insider Velchamy Sankarlingam sold 1,553 shares of the stock in a transaction dated Tuesday, March 12th. The shares were sold at an average price of $70.00, for a total value of $108,710.00. Following the completion of the transaction, the insider now owns 71,956 shares of the company’s stock, valued at $5,036,920. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Zoom Video Communications news, CEO Eric S. Yuan sold 27,963 shares of the stock in a transaction that occurred on Wednesday, April 10th. The shares were sold at an average price of $61.98, for a total transaction of $1,733,146.74. Following the completion of the sale, the chief executive officer now owns 95,140 shares of the company’s stock, valued at approximately $5,896,777.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Velchamy Sankarlingam sold 1,553 shares of the stock in a transaction that occurred on Tuesday, March 12th. The shares were sold at an average price of $70.00, for a total transaction of $108,710.00. Following the sale, the insider now directly owns 71,956 shares of the company’s stock, valued at approximately $5,036,920. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 85,456 shares of company stock valued at $5,539,710. 11.28% of the stock is currently owned by insiders.

Institutional Trading of Zoom Video Communications

Large investors have recently modified their holdings of the business. Renaissance Technologies LLC increased its stake in Zoom Video Communications by 61.0% in the 1st quarter. Renaissance Technologies LLC now owns 6,449,306 shares of the company’s stock worth $756,052,000 after purchasing an additional 2,444,294 shares during the period. Norges Bank purchased a new position in shares of Zoom Video Communications during the fourth quarter valued at approximately $164,224,000. Acadian Asset Management LLC increased its stake in shares of Zoom Video Communications by 639.9% during the third quarter. Acadian Asset Management LLC now owns 1,629,081 shares of the company’s stock valued at $113,916,000 after buying an additional 1,408,908 shares during the period. Vanguard Group Inc. increased its stake in shares of Zoom Video Communications by 4.6% during the third quarter. Vanguard Group Inc. now owns 22,695,541 shares of the company’s stock valued at $1,587,326,000 after buying an additional 1,000,005 shares during the period. Finally, ARK Investment Management LLC increased its stake in shares of Zoom Video Communications by 7.7% during the fourth quarter. ARK Investment Management LLC now owns 10,964,576 shares of the company’s stock valued at $788,463,000 after buying an additional 781,663 shares during the period. Institutional investors own 66.54% of the company’s stock.

About Zoom Video 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.