Zoom Communications’ (ZM) Buy Rating Reaffirmed at Needham & Company LLC

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reiterated by analysts at Needham & Company LLC in a research note issued on Thursday, Benzinga reports. They presently have a $130.00 target price on the stock. Needham & Company LLC‘s price objective would indicate a potential upside of 35.74% from the stock’s previous close.

Several other analysts have also issued reports on the stock. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Wednesday. Rosenblatt Securities reiterated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Wednesday. UBS Group reduced their target price on shares of Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a research note on Wednesday. Yorkville Ives began coverage on shares of Zoom Communications in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 target price for the company. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $104.00 target price on shares of Zoom Communications in a research note on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Stock Down 0.4%

ZM traded down $0.43 during trading on Thursday, hitting $95.77. 3,039,162 shares of the company’s stock were exchanged, compared to its average volume of 3,899,812. The business’s 50 day moving average is $96.50 and its two-hundred day moving average is $95.10. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The stock has a market cap of $27.94 billion, a P/E ratio of 8.87, a PEG ratio of 4.59 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter in the prior year, the company posted $1.53 earnings per share. The business’s revenue was up 4.9% on a year-over-year basis. 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. On average, sell-side analysts forecast that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 2,637 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $247,192.38. Following the sale, the director directly owned 121,786 shares of the company’s stock, valued at $11,416,219.64. This represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, insider Velchamy Sankarlingam sold 7,645 shares of the company’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.26, for a total transaction of $758,842.70. Following the sale, the insider directly owned 151,813 shares in the company, valued at approximately $15,068,958.38. This trade represents a 4.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 71,209 shares of company stock valued at $6,938,989. Insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently modified their holdings of the company. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of Zoom Communications by 0.4% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock worth $2,380,000 after buying an additional 107 shares in the last quarter. Fortitude Family Office LLC lifted its holdings in shares of Zoom Communications by 27.2% in the third quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock worth $48,000 after buying an additional 114 shares in the last quarter. 3Chopt Investment Partners LLC lifted its holdings in shares of Zoom Communications by 1.6% in the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock worth $592,000 after buying an additional 119 shares in the last quarter. Rexford Capital Inc. lifted its holdings in shares of Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after buying an additional 122 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted 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 worth $30,000 after buying an additional 200 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

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.