Galvin Gaustad & Stein LLC Sells 282,189 Shares of Zoom Video Communications, Inc.

In the latest update regarding its investment portfolio, Galvin Gaustad & Stein LLC has reported a significant reduction in its holdings of Zoom Video Communications, Inc. (NASDAQ:ZM). According to their most recent Form 13F filing with the Securities and Exchange Commission (SEC), the institutional investor decreased its stake in the company by an impressive 91.0% during the fourth quarter. After the sales, Galvin Gaustad & Stein LLC now owns 27,786 shares of Zoom, down from a total of 282,189 shares sold in this period. As of the filing, these remaining shares are valued at approximately $2,268,000.

Other institutional investors and hedge funds have also been adjusting their positions in Zoom Video Communications recently. For instance, AQR Capital Management LLC raised its stake in the company by 78.5% during the second quarter, bringing their total holdings to 5,731,354 shares, which are now valued at about $337,233,000 after acquiring an additional 2,520,987 shares. Similarly, FMR LLC increased its holdings by 23.8% in the third quarter, now owning 12,444,887 shares worth approximately $867,906,000 after purchasing 2,395,396 extra shares.

Additionally, Eagle Asset Management Inc. entered the picture by buying a new stake in Zoom during the third quarter, valued around $62,038,000. Assenagon Asset Management S.A. boosted its position by 126.8% in the fourth quarter, reaching 1,251,302 shares valued at $102,119,000, after acquiring 699,625 shares. Meanwhile, Nordea Investment Management AB increased its holdings significantly by 202.8%, achieving ownership of 779,051 shares now valued at $64,054,000 after an additional purchase of 521,778 shares. Collectively, institutional investors own approximately 66.54% of Zoom’s stock.

Zoom Video Communications Stock Performance

On the trading day following the report, Zoom's stock opened at $78.17. The company has shown a solid performance with a 50-day simple moving average of $82.56 and a 200-day simple moving average of $72.15. As of now, Zoom Video Communications possesses a market capitalization of $23.96 billion with a price-to-earnings (PE) ratio of 26.03, and a price-to-earnings-growth (PEG) ratio of 4.94. The stock has traded within a one-year range of a low of $55.06 and a high of $92.80.

Analysts Update Price Targets

Recent evaluations by analysts regarding Zoom's stock have led to several updates. For example, Wells Fargo & Company upgraded their rating from "underweight" to "equal weight," increasing their price target from $70.00 to $85.00. Cantor Fitzgerald initiated coverage on Zoom's shares setting a "neutral" rating with a target price of $87.00. Furthermore, Morgan Stanley also increased their price target from $86.00 to $96.00 while maintaining an "equal weight" rating.

Moreover, HSBC Global Research upgraded the stock to a "strong buy" rating. Currently, the consensus from sixteen investment analysts suggests a "hold" rating, while eight analysts have issued buy ratings, and one has given a strong buy rating with an average target price set at $89.10.

Insider Sales Activity

In insider trading news, Velchamy Sankarlingam, an insider at Zoom, sold 3,618 shares on December 10, at an average price of $84.94, totaling around $307,312.92. After the transaction, Sankarlingam's remaining shares are valued at approximately $9,158,740.44, indicating a 3.25% reduction in their ownership. Additionally, Chief Accounting Officer Shane Crehan sold 1,551 shares on the same day, which resulted in a 32.30% decrease in their position. Over the last three months, insiders collectively sold 489,981 shares of Zoom's stock that amounted to $38,712,948, and insiders now hold approximately 10.78% of the company’s shares.

About Zoom Video Communications

Zoom Video Communications, Inc. is a well-known provider of a unified communications platform across multiple regions including the Americas, Asia Pacific, Europe, and the Middle East. The company is famous for its services such as Zoom Meetings for high-definition video and chat capabilities, Zoom Phone which is a cloud-based phone system for enterprises, and Zoom Chat for message and content sharing across various devices.

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