CEO of Zoom Cuts Ownership, The Selling Then Followed by Other Fellow Executives
Jan. 14, 2025 - It appears that the beginning of 2025 was deemed as a good time for the executives at Zoom Communications to slash their Zoom ownership. On January 8th and 10th, several Zoom executives were recorded making insider sales totaling $4.35 million.
On January 8th, Eric S. Yuan sold 33,751 of the 34,703 Zoom shares he owned, representing 97.26% of his entire holdings. Two days later, on January 10th, other Zoom executives followed suit. Aparna Bawa (COO) sold 66.3% of her holdings, Velchamy Sankarlingam (President of Engineering and Product) sold 6.7%, and Shane Crehan (CAO) sold 26.13%.
Below are the highlighted transactions:
Source: GuruFocus' Zoom Insider
The four executives from Zoom cut their stake at an average price of $78.69 per share and made no significant changes in the stock price.
Reuters reported that despite the significant portions of their zoom shares selling, the transaction was part of mandated “sell to cover” arrangement. These executives are allowed to sell a portion of their shares to exercise their tax obligations induced from exercising stock options, equity awards or receives restricted stock units.
Yuan confirmed to investing.com that he sold 33,751 shares of Zoom's class A common stock as part of pre- arranged plan to cover tax obligations related to equity awards.
But selling a significant portion that almost empties the whole stake can be interpreted into different things such as liquidity needs for personal expenses or change in confidence to the prospect of the company.
Zoom's stock peaked during pandemic when activities done mostly from home, and since its peak fluctuations followed. The company's growth also slowed and there has been concerns about its future performance. Yuan and other executives continue to play pivotal role in Zoom Communications following the selling and no announcements indicating replacement or stepping down.
You can make more informed investment decisions by visiting GuruFocus and deep dive into Zoom's performance, charts, breakdowns, insiders, and more!
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