Zoom Communications (NASDAQ:ZM) Sets New 1-Year High – Time to Buy?

Zoom Communications, Inc. (NASDAQ:ZM) hit a new 52-week high on Tuesday . The stock traded as high as $111.56 and last traded at $107.12, with a volume of 4107053 shares changing hands. The stock had previously closed at $109.21.

Wall Street Analyst Weigh In

ZM has been the topic of several recent research reports. Zacks Research downgraded Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Wolfe Research upgraded Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price on the stock in a research report on Thursday, February 5th. Argus upgraded Zoom Communications to a “hold” rating in a research report on Monday, March 9th. Needham & Company LLC restated a “buy” rating and set a $100.00 target price on shares of Zoom Communications in a research report on Friday, March 13th. Finally, Citigroup upgraded Zoom Communications from a “neutral” rating to a “buy” rating and increased their target price for the stock from $94.00 to $106.00 in a research 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 given a Sell rating to the company. According to MarketBeat.com, Zoom Communications has an average rating of “Hold” and an average target price of $95.32.

Zoom Communications Stock Down 1.9%

The stock has a market cap of $31.57 billion, a PE ratio of 17.28, a P/E/G ratio of 6.25 and a beta of 1.00. The firm has a 50-day simple moving average of $84.34 and a 200-day simple moving average of $85.73.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter last year, the business posted $1.41 EPS. The company’s quarterly revenue was up 5.3% on a year-over-year basis. 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, research analysts expect that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Insider Activity at Zoom Communications

In related news, Director Santiago Subotovsky sold 5,274 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 142,882 shares in the company, valued at approximately $15,228,363.56. This represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the company’s stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares in the company, valued at approximately $2,988,571.12. This trade represents a 65.52% 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. Insiders have sold 144,329 shares of company stock valued at $12,364,989 in the last ninety days. Insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Advocate Investing Services LLC purchased a new stake in Zoom Communications during the fourth quarter valued at about $26,000. Strive Financial Group LLC bought a new position in shares of Zoom Communications during the 4th quarter valued at about $27,000. Toth Financial Advisory Corp bought a new position in shares of Zoom Communications during the 4th quarter valued at about $28,000. Rexford Capital Inc. increased its position in shares of Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after purchasing an additional 122 shares during the last quarter. Finally, Root Financial Partners LLC bought a new position in shares of Zoom Communications during the 3rd quarter valued at about $33,000. 66.54% of the stock is currently 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.