Zoom CEO yuan sells $2.5m in shares

Published 17/07/2025, 00:54
Zoom CEO yuan sells $2.5m in shares

Zoom Communications (NASDAQ:ZM) Chief Executive Officer Eric S. Yuan sold a total of $2.5 million in Class A Common Stock on July 14, 2025. The company, which maintains impressive gross profit margins of 76% and strong financial health according to InvestingPro analysis, continues to demonstrate solid operational performance.

According to a Form 4 filing with the Securities and Exchange Commission, Yuan sold 6,214 shares at a weighted average price of $74.4852, in multiple transactions at prices ranging from $73.72 to $74.715. He then sold 27,477 shares at a weighted average price of $74.8583, in multiple transactions at prices ranging from $74.72 to $75.005. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model, with analysts setting price targets ranging from $65 to $115.

The shares are held of record by Zheng Yuan and Hongyu Zhang, cotrustees of the the 2018 Yuan and Zhang Revocable Trust, for which the Reporting Person and the Reporting Person’s spouse serve as cotrustees. The sales were executed pursuant to a Rule 10b5-1 trading plan. Following the transactions, Yuan directly owns zero shares. For deeper insights into insider trading patterns and comprehensive financial analysis, access the full Zoom Pro Research Report, available exclusively on InvestingPro.

In other recent news, Zoom Communications has reported its first-quarter fiscal year 2026 earnings, surpassing expectations with an $8 million revenue beat. Following this, Benchmark raised Zoom’s stock price target to $102, maintaining a Buy rating, while Piper Sandler adjusted its target to $85, up from $77, but kept a Neutral stance. Stifel also maintained its Hold rating with a price target of $85, citing stability in buyer behavior despite extended sales cycles with large U.S. customers. Zoom has expanded its Zoom Phone service to four additional telecom circles in India, enhancing its presence in major business hubs. This expansion aligns with the company’s strategy to support distributed workforces and hybrid teams. At its 2025 Annual Meeting of Stockholders, Zoom’s proposals, including the election of directors and the appointment of KPMG LLP as its independent auditor, were approved. The company has also been increasing its share repurchase program, a move seen positively by analysts. Zoom’s innovative use of AI, as demonstrated by CEO Eric Yuan’s avatar presentation, highlights its commitment to technological advancements and privacy.

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