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

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reiterated by analysts at Needham & Company LLC in a research report issued to clients and investors on Thursday, Benzinga reports. They currently have a $130.00 price target on the stock. Needham & Company LLC‘s target price suggests a potential upside of 31.95% from the stock’s current price.

A number of other analysts have also recently weighed in on ZM. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a research report on Wednesday. Bank of America initiated coverage on Zoom Communications in a research report on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price on the stock. Finally, UBS Group decreased their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a research report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $114.48.

Zoom Communications Stock Down 0.9%

Shares of Zoom Communications stock traded down $0.92 during trading on Thursday, hitting $98.52. The stock had a trading volume of 798,266 shares, compared to its average volume of 3,891,897. The stock has a 50 day simple moving average of $96.77 and a 200 day simple moving average of $95.00. The company has a market capitalization of $28.75 billion, a PE ratio of 9.15, a P/E/G ratio of 4.50 and a beta of 1.03. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74.

Zoom Communications (NASDAQ:ZM) last released its earnings results 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. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The firm’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period last year, the firm posted $1.53 earnings per share. 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. As a group, equities analysts expect that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In related news, 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 transaction, the insider owned 151,813 shares in the company, valued at $15,068,958.38. This represents a 4.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, Director Santiago Subotovsky sold 7,911 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the transaction, the director owned 127,060 shares in the company, valued at approximately $12,874,989.80. The trade was a 5.86% 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 71,209 shares of company stock worth $6,938,989 over the last quarter. Corporate insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Sumitomo Mitsui DS Asset Management Company Ltd lifted its position in Zoom Communications by 0.4% during the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock valued at $2,380,000 after purchasing an additional 107 shares during the period. Fortitude Family Office LLC lifted its position in Zoom Communications by 27.2% during the 3rd quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock valued at $48,000 after purchasing an additional 114 shares during the period. 3Chopt Investment Partners LLC lifted its position in Zoom Communications by 1.6% during the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after purchasing an additional 119 shares during the period. Rexford Capital Inc. lifted its position in 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 period. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its position in Zoom Communications by 133.3% during 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 period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications News Summary

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

• Positive Sentiment: AI strategy strengthens growth narrative: Zoom introduced a Unified Context Layer and new AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools and events. The products could help Zoom expand beyond video conferencing and increase customer monetization. Zoom AI strategy announcement
• Positive Sentiment: Analyst upgrades and favorable targets: Oppenheimer upgraded Zoom to Outperform from Perform and set a $130 price target. Needham, RBC, Rosenblatt and BTIG also reaffirmed bullish ratings with targets ranging from $125 to $130, implying roughly 26%–31% upside from recent trading levels. Oppenheimer upgrades Zoom
• Positive Sentiment: Enterprise growth may support revenue reacceleration: RBC analysts said Zoom’s growth outlook is being supported by enterprise customers, while management’s Zoomtopia presentations emphasized new revenue streams and longer-term expansion opportunities.
• Positive Sentiment: Valuation remains attractive to some investors: One analysis estimated that ZM could be approximately 16% undervalued following the AI announcements. Zoom’s cash-rich balance sheet, profitability and low earnings multiple may provide additional support if growth improves.

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.