Zoom communications director sells $192,701 in stock

Published 27/03/2025, 01:18
© Reuters

SAN JOSE, CA—Santiago Subotovsky, a director at Zoom Communications, Inc. (NASDAQ:ZM), has sold shares of the company’s Class A Common Stock valued at approximately $192,701, according to a recent SEC filing. The transaction, which took place on March 24, 2025, involved the sale of 2,475 shares at a weighted average price of $77.86 per share, with prices ranging from $77.56 to $78.28. The sale represents a small portion of Zoom’s $23.7 billion market capitalization, with the company maintaining impressive gross profit margins of 76% and a strong balance sheet showing more cash than debt.

The sale was conducted under a Rule 10b5-1 trading plan, a prearranged trading strategy that allows insiders to sell a predetermined number of shares at a predetermined time, thereby avoiding potential accusations of insider trading. Following this transaction, Subotovsky holds 169,452 shares of Zoom’s Class A Common Stock.

The filing also notes that the balance of shares reflects the receipt of 13,379 shares from a pro-rata distribution and includes 6,678 shares acquired upon the vesting of restricted stock units, held for the benefit of EEP III.

Zoom Communications, a leading provider of video conferencing services, continues to be a significant player in the technology sector, with its stock closely watched by investors. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with analyst targets ranging from $70 to $115 per share. Discover comprehensive insights about Zoom and 1,400+ other stocks through InvestingPro’s detailed research reports.

In other recent news, Zoom Communications, Inc. has announced a significant expansion of its artificial intelligence features, introducing new AI Companion capabilities across its platform to enhance productivity and collaboration. The AI Companion will actively perform tasks, including calendar management and writing assistance, and Zoom plans to offer a Custom AI Companion add-on in April. Additionally, Zoom has partnered with Mitel to launch a new hybrid cloud communications solution, integrating Zoom’s AI-driven tools with Mitel’s telephony systems, which is now available globally.

Analysts have provided varied outlooks on Zoom’s stock. Benchmark analyst Matthew Harrigan maintained a Buy rating with a $97 target, highlighting growth in monthly active users for Zoom’s AI Companion. In contrast, Stifel adjusted its price target from $90 to $85, maintaining a Hold rating while acknowledging potential growth drivers like Zoom’s Contact Center and Workvivo. Bernstein SocGen Group also retained a Market Perform rating with an $89 target, noting modest growth projections and challenges in reigniting overall growth. These developments reflect Zoom’s ongoing efforts to innovate and adapt to changing market conditions.

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