Zoom Communications, Inc. (NASDAQ:ZM) Given Average Rating of “Moderate Buy” by Analysts

Zoom Communications, Inc. (NASDAQ:ZM) has been assigned a consensus rating of “Moderate Buy” from the twenty-seven ratings firms that are covering the company, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $109.3333.

ZM has been the topic of a number of recent analyst reports. Robert W. Baird boosted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Jefferies Financial Group increased their price objective on shares of Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a report on Friday, May 22nd. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Mizuho boosted their target price on Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Thursday, July 2nd.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $104.71 on Friday. The stock has a market cap of $30.70 billion, a price-to-earnings ratio of 15.38, a PEG ratio of 5.68 and a beta of 1.00. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The business has a fifty day moving average of $92.79 and a 200-day moving average of $90.81.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. The business 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 period in the previous year, the business earned $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. On average, equities research analysts predict that Zoom Communications will post 4.21 EPS for the current year.

Insider Transactions at Zoom Communications

In related news, Director Santiago Subotovsky sold 7,911 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the transaction, the director owned 127,060 shares of the company’s stock, valued at $12,874,989.80. This trade represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock in a transaction dated Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total value of $703,095.12. Following the transaction, the insider directly owned 148,403 shares in the company, valued at approximately $13,650,107.94. The trade was a 4.90% 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 56,155 shares of company stock worth $5,654,761. Corporate insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently made changes to their positions in ZM. Advocate Investing Services LLC bought a new stake in Zoom Communications during the fourth quarter worth approximately $26,000. Strive Financial Group LLC bought a new position in shares of Zoom Communications in the fourth quarter valued at $27,000. Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of Zoom Communications by 133.3% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after buying an additional 200 shares in the last quarter. Rexford Capital Inc. lifted 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 acquiring an additional 122 shares during the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its position in shares of Zoom Communications by 83.3% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company’s stock valued at $38,000 after acquiring an additional 200 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications Company Profile

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.