Zacks Research Upgrades Zoom Communications (NASDAQ:ZM) to Strong-Buy

Zoom Communications (NASDAQ:ZM) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday,Zacks.com reports.

ZM has been the topic of several other reports. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $90.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Morgan Stanley lifted their price target on Zoom Communications from $85.00 to $92.00 and gave the company an “equal weight” rating in a research report on Tuesday, November 25th. Cantor Fitzgerald restated a “neutral” rating and issued a $87.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. Finally, Wall Street Zen cut shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $93.00.

Zoom Communications Stock Down 3.4%

Zoom Communications stock opened at $83.32 on Wednesday. Zoom Communications has a 52 week low of $64.41 and a 52 week high of $91.43. The company has a market capitalization of $24.67 billion, a price-to-earnings ratio of 16.21, a price-to-earnings-growth ratio of 7.75 and a beta of 0.81. The stock has a 50-day moving average price of $85.36 and a 200 day moving average price of $80.94.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Monday, November 24th. The company reported $1.52 EPS for the quarter, beating the consensus estimate of $1.44 by $0.08. The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The business’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.38 EPS. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. Research analysts anticipate that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zoom Communications news, CFO Michelle Chang sold 33,956 shares of the company’s stock in a transaction on Friday, October 10th. The shares were sold at an average price of $82.00, for a total transaction of $2,784,392.00. Following the completion of the transaction, the chief financial officer directly owned 20,539 shares in the company, valued at approximately $1,684,198. This represents a 62.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,660 shares of the stock in a transaction on Friday, October 10th. The shares were sold at an average price of $82.00, for a total transaction of $628,120.00. Following the transaction, the insider directly owned 132,795 shares in the company, valued at approximately $10,889,190. The trade was a 5.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 462,751 shares of company stock valued at $38,730,439. Corporate insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZM. Elevation Point Wealth Partners LLC acquired a new stake in Zoom Communications in the 2nd quarter worth about $27,000. REAP Financial Group LLC lifted its position in shares of Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after acquiring an additional 229 shares in the last quarter. FNY Investment Advisers LLC acquired a new stake in shares of Zoom Communications in the second quarter worth approximately $31,000. Root Financial Partners LLC acquired a new stake in shares of Zoom Communications in the third quarter worth approximately $33,000. Finally, Quent Capital LLC purchased a new stake in shares of Zoom Communications during the third quarter worth approximately $34,000. 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.