Zoom Communications (NASDAQ:ZM) Stock Price Up 11.2% – Time to Buy?

Shares of Zoom Communications, Inc. (NASDAQ:ZM) rose 11.2% during mid-day trading on Monday . The stock traded as high as $114.47 and last traded at $113.00. Approximately 3,867,460 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 4,435,287 shares. The stock had previously closed at $101.59.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on ZM shares. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price for the company in a research note on Thursday, February 5th. Argus upgraded shares of Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Benchmark increased their price objective on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Morgan Stanley increased their price objective on shares of Zoom Communications from $92.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Friday, May 22nd. Finally, Zacks Research downgraded shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $108.15.

Zoom Communications Stock Up 11.3%

The business’s 50 day moving average is $91.36 and its 200-day moving average is $87.38. The firm has a market capitalization of $33.16 billion, a P/E ratio of 16.54, a PEG ratio of 5.79 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.42 by $0.13. The firm had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The company’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. Research analysts forecast that Zoom Communications, Inc. will post 3.96 EPS for the current fiscal year.

Insider Transactions at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of Zoom Communications stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the completion of the sale, the director directly owned 142,882 shares of the company’s stock, valued at approximately $15,228,363.56. The trade was a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of Zoom Communications stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.60, for a total transaction of $1,289,860.00. 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 quarter, insiders sold 144,329 shares of company stock valued at $12,364,989. 10.78% of the stock is owned by insiders.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors have recently added to or reduced their stakes in ZM. NewEdge Advisors LLC grew its position in Zoom Communications by 16.8% in the 1st quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock worth $591,000 after purchasing an additional 1,153 shares in the last quarter. Intech Investment Management LLC grew its position in Zoom Communications by 59.1% in the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after purchasing an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. grew its position in Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock worth $65,000 after purchasing an additional 397 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in Zoom Communications in the 2nd quarter worth about $217,000. Finally, Invesco Ltd. grew its position in Zoom Communications by 7.0% in the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company’s stock worth $56,942,000 after purchasing an additional 47,749 shares in the last quarter. 66.54% of the stock is owned by institutional investors.

About Zoom Communications

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.