Zoom Communications, Inc. (ZM) – What Are Researchers Thinking About This Stock?

Zoom Communications, Inc. (NASDAQ:ZM) has received a consensus rating of “Moderate Buy” from the twenty-seven ratings firms that are covering the firm, Marketbeat.com reports. Eleven equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $114.48.

Several analysts have recently weighed in on ZM shares. Needham & Company LLC restated a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a report on Thursday, October 22nd. 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 report on Wednesday, August 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $130.00 target price on shares of Zoom Communications in a report on Wednesday, October 21st. Rosenblatt Securities restated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a report on Wednesday, October 21st. Finally, Oppenheimer upgraded shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price objective on the stock in a research report on Wednesday, October 21st.

Zoom Communications Price Performance

NASDAQ:ZM opened at $95.50 on Wednesday. The firm has a market capitalization of $27.86 billion, a price-to-earnings ratio of 8.84, a PEG ratio of 4.26 and a beta of 1.02. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The business has a 50 day simple moving average of $95.56 and a 200-day simple moving average of $91.90.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. Zoom Communications’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the business posted $1.53 earnings per share. 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. As a group, analysts expect that Zoom Communications will post 4.24 earnings per share for the current fiscal year.

Insider Transactions at Zoom Communications

In related news, CEO Eric Yuan sold 12,100 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the sale, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. The trade was a 34.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Mcmaster sold 1,500 shares of the firm’s stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $101.25, for a total transaction of $151,875.00. Following the sale, the director directly owned 6,979 shares of the company’s stock, valued at approximately $706,623.75. The trade was a 17.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 88,856 shares of company stock worth $8,725,094. Insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of hedge funds have recently added to or reduced their stakes in the stock. Provenance Wealth Advisors LLC acquired a new stake in Zoom Communications in the 3rd quarter valued at about $43,000. Torray Investment Partners LLC lifted its position in shares of Zoom Communications by 46.2% during the third quarter. Torray Investment Partners LLC now owns 36,252 shares of the company’s stock worth $3,291,000 after acquiring an additional 11,456 shares in the last quarter. Bank Julius Baer & Co. Ltd Zurich increased its holdings in shares of Zoom Communications by 29.2% in the third quarter. Bank Julius Baer & Co. Ltd Zurich now owns 1,218 shares of the company’s stock worth $111,000 after buying an additional 275 shares during the period. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Zoom Communications during the 3rd quarter valued at $5,493,000. Finally, MGO One Seven LLC raised its position in Zoom Communications by 7.3% in the 3rd quarter. MGO One Seven LLC now owns 2,820 shares of the company’s stock worth $256,000 after buying an additional 193 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

About Zoom Communications

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.