Zoom (ZM) product chief sells 2,590 shares under 10b5-1 plan
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Zoom Communications, Inc. President of Engineering & Product Sankarlingam Velchamy sold 2,590 shares of Class A Common Stock at $78.24 per share in an open‑market trade under a pre‑arranged Rule 10b5‑1 trading plan.
On the prior day, he acquired 7,031 shares through the vesting and conversion of restricted stock units at an exercise price of $0.00, while 3,579 shares were withheld by the issuer at $77.50 per share to satisfy tax obligations. Following these transactions, he holds 137,044 shares directly, plus additional indirect holdings and 186,765 underlying shares tied to outstanding restricted stock units.
Positive
- None.
Negative
- None.
Insider Trade Summary 10b5-1
Net Seller: 2,590 shares ($202,642)
Net Sell
10 txns
Insider
Sankarlingam Velchamy
Role
Pres. of Engineering & Product
Sold
2,590 shs ($203K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Sale | Class A Common Stock | 2,590 | $78.24 | $203K |
| Exercise | Restricted Stock Units | 4,224 | $0.00 | -- |
| Exercise | Restricted Stock Units | 2,807 | $0.00 | -- |
| Exercise | Class A Common Stock | 7,031 | $0.00 | -- |
| Tax Withholding | Class A Common Stock | 3,579 | $77.50 | $277K |
| holding | Restricted Stock Units | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Holdings After Transaction:
Class A Common Stock — 137,044 shares (Direct);
Restricted Stock Units — 8,447 shares (Direct);
Class A Common Stock — 36,060 shares (Indirect, Velchamy Family Trust)
Footnotes (1)
- Shares withheld by Issuer to satisfy the tax withholding obligation in connection with the vesting of Restricted Stock Units. The sales reported on this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on January 14, 2025 Each restricted stock unit represents a contingent right to receive one share of Issuer's Class A Common Stock. The Reporting Person received an award of restricted stock units on September 9, 2022, which will vest in equal quarterly installments over four years. The Reporting Person received an award of restricted stock units on September 12, 2023, which will vest in equal quarterly installments over three years. The Reporting Person received an award of restricted stock units which vest quarterly in 16 equal installments beginning on July 9, 2024.
FAQ
What insider transaction did Zoom (ZM) executive Sankarlingam Velchamy report?
Sankarlingam Velchamy reported selling 2,590 shares of Zoom Class A Common Stock at $78.24 per share. The sale was an open‑market transaction made under a pre‑arranged Rule 10b5‑1 trading plan, indicating it was scheduled in advance rather than timed opportunistically.
Did Sankarlingam Velchamy exercise restricted stock units in this Zoom (ZM) filing?
Yes. He acquired 7,031 shares of Zoom Class A Common Stock through the vesting and conversion of restricted stock units at an exercise price of $0.00. The RSUs stem from multiple awards granted in 2022, 2023, and 2024 that vest in regular quarterly installments over several years.
What does the Rule 10b5-1 trading plan mean in Zoom (ZM) executive’s sale?
The filing states the sale was executed under a Rule 10b5‑1 trading plan adopted on January 14, 2025. Such plans pre‑schedule trades according to preset instructions, reducing the likelihood that the timing reflects non‑public information or a discretionary short‑term view on Zoom’s share price.
What ongoing equity compensation does Zoom (ZM) provide to Sankarlingam Velchamy?
He holds restricted stock unit awards granted in September 2022 and September 2023, vesting in equal quarterly installments over four and three years, respectively. Another RSU award vests quarterly in 16 equal installments beginning July 9, 2024, supporting a structured, multi‑year equity compensation program.