Zoom Communications’ (ZM) “Buy” Rating Reiterated at Needham & Company LLC

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

ZM has been the topic of a number of other reports. Rosenblatt Securities reissued a “buy” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday. Oppenheimer raised shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price objective for the company in a research note on Wednesday. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. BTIG Research reaffirmed a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a report on Wednesday. Finally, 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 target price on the stock. Sixteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Price Performance

Shares of NASDAQ:ZM traded down $0.43 during trading on Thursday, hitting $95.77. 3,039,273 shares of the company were exchanged, compared to its average volume of 3,902,601. The company has a market cap of $27.94 billion, a PE ratio of 8.87, a P/E/G ratio of 4.59 and a beta of 1.03. The stock has a 50 day moving average of $96.29 and a 200 day moving average of $95.10. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74.

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

Insiders Place Their Bets

In other news, CEO Eric Yuan sold 12,100 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer directly owned 22,998 shares in the company, valued at approximately $2,155,832.52. This represents a 34.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 10,156 shares of the stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.93, for a total value of $1,035,201.08. Following the transaction, the chief financial officer owned 30,282 shares in the company, valued at $3,086,644.26. This trade represents a 25.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 85,197 shares of company stock valued at $8,359,533 over the last quarter. Insiders own 8.83% of the company’s stock.

Institutional Trading of Zoom Communications

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Tidal Investments LLC grew its holdings in shares of Zoom Communications by 251.2% during the 2nd quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock valued at $10,655,000 after purchasing an additional 88,303 shares during the last quarter. Bull Harbor Capital LLC bought a new stake in Zoom Communications in the first quarter worth $939,000. First Heartland Consultants Inc. purchased a new stake in Zoom Communications during the third quarter valued at about $1,870,000. Edgestream Partners L.P. purchased a new stake in Zoom Communications during the first quarter valued at about $2,689,000. Finally, Ameritas Advisory Services LLC purchased a new stake in Zoom Communications during the second quarter valued at about $1,062,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

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

About Zoom Communications

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.