Zoom Communications (NASDAQ:ZM) Upgraded at Oppenheimer

Oppenheimer upgraded shares of Zoom Communications (NASDAQ:ZM) from a market perform rating to an outperform rating in a report released on Wednesday, Marketbeat reports. The brokerage currently has $130.00 price objective on the stock.

A number of other analysts also recently weighed in on ZM. Bank of America began coverage on shares of Zoom Communications in a report on Wednesday, August 19th. They set a “buy” rating and a $130.00 price target for the company. Morgan Stanley lifted their price objective on shares of Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 26th. Rosenblatt Securities restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a research report on Friday, August 21st. Yorkville Ives started coverage on shares of Zoom Communications in a research report on Tuesday, October 6th. They set an “outperform” rating and a $120.00 price objective for the company. Finally, BTIG Research restated a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a research note on Monday, August 24th. Sixteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Down 0.4%

Shares of Zoom Communications stock opened at $95.77 on Wednesday. The company has a market capitalization of $27.94 billion, a price-to-earnings ratio of 26.50, a PEG ratio of 4.27 and a beta of 1.03. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74. The firm’s 50-day moving average price is $96.29 and its two-hundred day moving average price is $95.10.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the firm earned $1.53 EPS. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. On average, sell-side analysts expect that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other news, CEO Eric Yuan sold 12,100 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the completion of the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. This represents a 34.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $94.71, for a total transaction of $284,130.00. Following the completion of the sale, the director owned 8,479 shares in the company, valued at approximately $803,046.09. The trade was a 26.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 87,414 shares of company stock valued at $8,580,692. Company insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently added to or reduced their stakes in ZM. Pacer Advisors Inc. lifted its stake in Zoom Communications by 10.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after purchasing an additional 253,181 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Zoom Communications by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after purchasing an additional 94,043 shares during the last quarter. Bank of America Corp DE boosted its position in Zoom Communications by 50.5% in the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after buying an additional 592,899 shares in the last quarter. Bank of New York Mellon Corp boosted its position in Zoom Communications by 44.5% in the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after buying an additional 434,981 shares in the last quarter. Finally, First Trust Advisors LP boosted its position in Zoom Communications by 2.8% in the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after buying an additional 36,657 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications News Summary

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

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.