Zoom Communications (NASDAQ:ZM) Receives Buy Rating from Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a research report released on Friday morning,Benzinga reports. They currently have a $100.00 price objective on the stock.

ZM has been the topic of several other research reports. Wedbush reissued an “outperform” rating and set a $95.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Morgan Stanley increased their price target on Zoom Communications from $85.00 to $92.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 25th. Jefferies Financial Group lifted their price target on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. BTIG Research dropped their price objective on Zoom Communications from $105.00 to $100.00 and set a “buy” rating on the stock in a research note on Thursday, February 26th. Finally, Citigroup upgraded Zoom Communications from a “neutral” rating to a “buy” rating and upped their price objective for the company from $94.00 to $106.00 in a report on Monday, January 12th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $95.32.

Zoom Communications Stock Down 1.1%

Shares of ZM opened at $74.10 on Friday. The firm has a market capitalization of $21.94 billion, a PE ratio of 11.95, a P/E/G ratio of 4.29 and a beta of 0.93. The firm has a 50-day moving average price of $85.41 and a 200 day moving average price of $84.50. Zoom Communications has a 52-week low of $64.41 and a 52-week high of $97.58.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. On average, equities analysts expect that Zoom Communications will post 2.93 EPS for the current year.

Insider Activity

In other Zoom Communications news, CFO Michelle Chang sold 8,417 shares of Zoom Communications stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.54, for a total value of $728,407.18. Following the transaction, the chief financial officer owned 25,482 shares in the company, valued at approximately $2,205,212.28. The trade was a 24.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Velchamy Sankarlingam sold 2,590 shares of the company’s stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $78.24, for a total value of $202,641.60. Following the completion of the transaction, the insider directly owned 137,044 shares in the company, valued at $10,722,322.56. This represents a 1.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 183,084 shares of company stock valued at $15,704,721 in the last ninety days. 11.51% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently modified their holdings of ZM. Advocate Investing Services LLC purchased a new stake in shares of Zoom Communications during the fourth quarter valued at $26,000. Strive Financial Group LLC purchased a new position in Zoom Communications in the 4th quarter worth about $27,000. Toth Financial Advisory Corp purchased a new position in Zoom Communications in the 4th quarter worth about $28,000. Elevation Point Wealth Partners LLC acquired a new stake in Zoom Communications during the 2nd quarter worth about $27,000. Finally, Root Financial Partners LLC acquired a new stake in Zoom Communications during the 3rd quarter worth about $33,000. 66.54% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom continues to push AI deeper into enterprise workflows — new virtual agent and workflow automation features (including PCI Pal payments support and broader third‑party interoperability) make Zoom more central to customer service and back‑office use cases, which supports revenue expansion potential. Zoom AI Push Aims To Make Platform Core To Enterprise Workflows
• Positive Sentiment: Security and fraud protection for Zoom Contact Center improved via Pindrop integration (real‑time deepfake detection and voice authentication). This reduces enterprise implementation risk and can ease sales into regulated verticals. Pindrop Zoom Integration Embeds Real-Time Deepfake Detection and Identity Verification in Zoom Contact Center
• Positive Sentiment: Industry momentum: Enterprise Connect’s successful Las Vegas debut highlights demand and partner visibility for enterprise communications players like Zoom — positive for pipeline and partner relationships. Enterprise Connect Debuts in Las Vegas with Record Energy, Sets Return for 2027
• Neutral Sentiment: Analyst backing: Needham reaffirmed a Buy and set a $100 target (≈35% upside from current levels), supporting upside narrative, but the broader consensus remains split (many Holds). Analyst views are a mixed but important sentiment driver. Benzinga
• Neutral Sentiment: Third‑party competition and ecosystem: Otter.ai (speech/notes AI) named a new CRO to accelerate enterprise adoption — a reminder that specialized transcription/AI tools are competing for the same corporate workflows Zoom targets. This raises competitive intensity but doesn’t directly undercut Zoom’s integrated platform advantages. Otter.ai Appoints Kenny Scannell as Chief Revenue Officer to Accelerate Global Growth and Enterprise Adoption of AI
• Negative Sentiment: Insider selling: Senior executive Velchamy Sankarlingam sold 2,590 shares (filed 3/10), which can be read negatively by some investors even though the sale is small relative to his holdings. Zoom Communications (NASDAQ:ZM) Insider Velchamy Sankarlingam Sells 2,590 Shares
• Positive Sentiment: Value argument after earnings pullback: Commentary from The Motley Fool highlights that Zoom’s network effects and enterprise positioning lessen near‑term AI disruption risk and that the stock’s post‑earnings decline presents a value opportunity to some long‑term investors. This Software Stock Looks Like an Incredible Value After Its Post-Earnings Sell-Off

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.