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Santiago Subotovsky, a director at Zoom Communications, Inc. (NASDAQ:ZM), recently sold shares of the company’s Class A common stock, according to a regulatory filing. The transactions, executed on June 3, were part of a pre-arranged trading plan under Rule 10b5-1. The video communications giant, currently valued at $24.6 billion, maintains impressive financial health with a 76% gross profit margin and strong liquidity metrics. According to InvestingPro analysis, the stock is currently trading below its Fair Value.
Subotovsky sold a total of 2,475 shares, generating approximately $199,663. The shares were sold at an average price ranging from $80.4764 to $81.0628 per share. Following these sales, Subotovsky holds 155,349 shares directly. Despite this insider sale, InvestingPro data shows management has been actively buying back shares, and the company maintains a strong balance sheet with more cash than debt.
Additionally, Subotovsky holds 1,470 shares indirectly through the Subotovsky Mann Family Trust, where he serves as a trustee. The stock has shown resilience with a 31% return over the past year. For deeper insights into ZM’s valuation and growth potential, including 8 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Zoom Video Communications Inc. reported first-quarter earnings for fiscal year 2026 that slightly exceeded expectations, with a notable $8 million revenue surplus. The company also increased its full-year constant currency revenue guidance by $15 million, driven by a price increase for Online Pro customers. Benchmark responded to these developments by raising Zoom’s stock price target to $102 while maintaining a Buy rating, citing the company’s adaptability in pricing strategies. Meanwhile, Piper Sandler adjusted its price target to $85, maintaining a Neutral rating, and noted the traction of newer products like CX and Workvivo among existing customers.
Stifel analysts reiterated a Hold rating with an $85 price target, observing consistent trends in Zoom’s Online and Enterprise segments despite cautious spending from some large U.S. customers. Bernstein maintained a Market Perform rating with an $89 price target, acknowledging a slight earnings beat and a cautious outlook due to macroeconomic uncertainties. BofA Securities raised its price target to $84, maintaining a Neutral stance, and highlighted a modest guidance increase for the Online segment.
Zoom’s management continues to navigate challenges in the Enterprise segment, with extended sales cycles and increased deal scrutiny. The company’s strategic focus on enhancing user experience and technological capabilities remains evident, as demonstrated by the CEO’s use of an AI avatar during the earnings call. These developments collectively reflect Zoom’s efforts to balance innovation with financial performance amid a complex economic landscape.
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