Needham & Company LLC Reaffirms Buy Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by analysts at Needham & Company LLC in a research report issued on Thursday, Benzinga reports. They presently have a $130.00 price objective on the stock. Needham & Company LLC’s target price indicates a potential upside of 30.73% from the stock’s previous close.

A number of other research analysts have also weighed in on ZM. Yorkville Ives assumed coverage on shares of Zoom Communications in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 price target on the stock. UBS Group lowered their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a report on Wednesday. Sanford C. Bernstein reissued a “market perform” rating and issued a $108.00 price target on shares of Zoom Communications in a research note on Wednesday, August 26th. Cantor Fitzgerald restated a “neutral” rating and issued a $104.00 price target on shares of Zoom Communications in a report on Wednesday. Finally, Rosenblatt Securities restated a “buy” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, Zoom Communications currently has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Stock Up 2.0%

ZM stock opened at $99.44 on Thursday. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74. The company has a market cap of $29.01 billion, a P/E ratio of 9.21, a price-to-earnings-growth ratio of 4.50 and a beta of 1.03. The business’s fifty day moving average is $96.77 and its 200-day moving average is $95.00.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.53 EPS. 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. Research analysts anticipate that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Activity at Zoom Communications

In other news, CEO Eric Yuan sold 12,100 shares of the stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $93.74, for a total value of $1,134,254.00. Following the completion of the sale, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. This represents a 34.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 2,637 shares of the stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $247,192.38. Following the completion of the sale, the director directly owned 121,786 shares of the company’s stock, valued at approximately $11,416,219.64. The trade was a 2.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 71,209 shares of company stock worth $6,938,989. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ZM. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Zoom Communications by 133.3% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after purchasing an additional 200 shares during the last quarter. Rexford Capital Inc. increased its position in Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after buying an additional 122 shares during the last quarter. V Square Quantitative Management LLC increased its position in Zoom Communications by 100.4% during the first quarter. V Square Quantitative Management LLC now owns 505 shares of the company’s stock worth $41,000 after buying an additional 253 shares during the last quarter. Strategic Investment Solutions Inc. IL raised its stake in Zoom Communications by 400.0% in the second quarter. Strategic Investment Solutions Inc. IL now owns 500 shares of the company’s stock valued at $43,000 after buying an additional 400 shares during the period. Finally, Elevation Wealth Partners LLC raised its stake in Zoom Communications by 133.8% in the third quarter. Elevation Wealth Partners LLC now owns 477 shares of the company’s stock valued at $43,000 after buying an additional 273 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom introduced a Unified Context Layer and new AI capabilities across Zoom Workplace, customer experience, developer tools, and events. The products are designed to convert meeting and customer conversations into completed tasks, potentially increasing customer engagement and creating additional revenue opportunities. Zoom Advances Its AI Strategy With a New Unified Context Layer
• Positive Sentiment: Oppenheimer upgraded Zoom from Perform to Outperform and set a $130 price target, saying the company’s newer AI services and platform traction were impressive. Rosenblatt and BTIG also reaffirmed bullish ratings with $130 and $125 targets, respectively. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: RBC maintained an Outperform rating with a $130 target, citing signs of revenue reacceleration supported by enterprise growth. The analyst activity helped reinforce expectations that Zoom’s shift beyond video meetings can improve growth. Zoom Communications’ Revenue Reacceleration Supported by Enterprise Growth
• Positive Sentiment: Zoom also unveiled long-term financial targets and additional AI-powered offerings, giving investors greater visibility into its growth strategy and supporting the stock’s upward move. Why Is Zoom Communications Stock Gaining Wednesday?
• Neutral Sentiment: Cantor Fitzgerald reaffirmed a Neutral rating with a $104 price target, indicating that some analysts remain cautious about how quickly the new AI initiatives will translate into measurable revenue and earnings growth.

Zoom Communications Company Profile

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.