Zoom Communications, Inc. (NASDAQ:ZM) Receives Average Recommendation of “Hold” from Brokerages

Zoom Communications, Inc. (NASDAQ:ZM) has been given a consensus rating of “Hold” by the twenty-eight ratings firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 12-month target price among analysts that have issued ratings on the stock in the last year is $95.3182.

ZM has been the subject of several analyst reports. Citigroup raised 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 research note on Monday, January 12th. Benchmark reduced their price objective on Zoom Communications from $115.00 to $110.00 and set a “buy” rating for the company in a research note on Tuesday, February 24th. Zacks Research downgraded Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Rosenblatt Securities reissued a “buy” rating and set a $115.00 target price on shares of Zoom Communications in a research note on Thursday, February 26th. Finally, KeyCorp raised their price target on Zoom Communications from $69.00 to $74.00 and gave the company an “underweight” rating in a report on Thursday, February 26th.

More Zoom Communications News

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

• Positive Sentiment: AI rebrand and renewed valuation interest — Zoom’s repositioning as an “AI‑first” work platform has pushed investors to revisit its growth profile and valuation, supporting recent share‑price momentum. Assessing Zoom Communications (ZM) Valuation After Its AI Rebrand And Recent Share Price Momentum
• Positive Sentiment: Senior product hire signals product roadmap push — Markets reacted positively after Zoom named a former Microsoft executive as chief product officer, a hire that investors view as strengthening AI/product execution. Zoom rises after appointing former Microsoft exec as chief product officer
• Positive Sentiment: Strategic assets and institutional interest — Coverage points to Zoom’s cash position and strategic stakes (e.g., Anthropic exposure) and several institutions increasing holdings, which can support a higher multiple if execution continues. Zoom’s Anthropic Stake and Huge Cash Pile Could Change the Story
• Neutral Sentiment: Analyst/valuation debate continues — Multiple recent writeups ask whether the post‑pandemic price reset is complete or if fundamentals still argue for further repricing; these analyses create mixed near‑term sentiment rather than a clear directional push. Is It Time To Reassess Zoom Communications (ZM) After Its Post Pandemic Price Reset?
• Neutral Sentiment: Retail/institutional attention rising — Zacks and other trackers note heavy investor searches and elevated interest, which can amplify moves but is not a directional fundamental on its own. Investors Heavily Search Zoom Communications, Inc. (ZM): Here is What You Need to Know
• Negative Sentiment: Large CEO stock sales — CEO Eric Yuan sold sizable blocks of shares in mid‑April (multiple filings totaling ~85k shares across trades), which can weigh on sentiment despite disclosures that many trades were executed under pre‑arranged 10b5‑1 plans. Zoom Communications (NASDAQ:ZM) CEO Eric Yuan Sells 15,273 Shares
• Negative Sentiment: Recent short‑term volatility/weak sessions — Coverage noted a pullback in the prior session, highlighting that momentum remains fragile and the stock can swing on sentiment and headline flow. Zoom Communications (ZM) Stock Declines While Market Improves: Some Information for Investors

Insiders Place Their Bets

In related news, CEO Eric S. Yuan sold 15,273 shares of Zoom Communications stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $82.23, for a total value of $1,255,898.79. Following the sale, the chief executive officer directly owned 36,796 shares in the company, valued at $3,025,735.08. The trade was a 29.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 2,475 shares of Zoom Communications stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $77.42, for a total value of $191,614.50. Following the completion of the sale, the director owned 153,442 shares in the company, valued at approximately $11,879,479.64. This trade represents a 1.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 120,970 shares of company stock valued at $10,021,951 in the last three months. 11.51% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Communications

A number of institutional investors have recently modified their holdings of ZM. Norges Bank purchased a new stake in shares of Zoom Communications in the fourth quarter valued at approximately $509,788,000. AQR Capital Management LLC boosted its stake in shares of Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after buying an additional 3,718,186 shares in the last quarter. Two Sigma Investments LP purchased a new stake in shares of Zoom Communications in the third quarter valued at approximately $86,709,000. Vanguard Group Inc. boosted its stake in shares of Zoom Communications by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after buying an additional 1,029,623 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its stake in shares of Zoom Communications by 54.4% in the third quarter. Pacer Advisors Inc. now owns 2,695,193 shares of the company’s stock valued at $222,353,000 after buying an additional 949,829 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Zoom Communications Stock Up 1.5%

ZM opened at $88.02 on Friday. The business has a 50 day moving average price of $82.07 and a two-hundred day moving average price of $84.01. The company has a market cap of $25.94 billion, a PE ratio of 14.20, a P/E/G ratio of 4.96 and a beta of 0.88. Zoom Communications has a 52 week low of $69.15 and a 52 week high of $97.58.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). The company had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The firm’s revenue was up 5.3% on a year-over-year basis. During the same period in the prior year, the company earned $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. As a group, sell-side analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

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.