Zoom Communications (NASDAQ:ZM) Stock Price Up 6.7% – What’s Next?

Zoom Communications, Inc. (NASDAQ:ZM)’s share price shot up 6.7% during mid-day trading on Monday . The stock traded as high as $91.17 and last traded at $91.4880. 1,166,855 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 2,592,674 shares. The stock had previously closed at $85.78.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Morgan Stanley raised their target price on shares of Zoom Communications from $85.00 to $92.00 and gave the stock an “equal weight” rating in a research report on Tuesday, November 25th. Wells Fargo & Company assumed coverage on Zoom Communications in a research note on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 price objective on the stock. UBS Group initiated coverage on Zoom Communications in a research report on Monday, October 20th. They set a “neutral” rating and a $85.00 target price for the company. Cantor Fitzgerald reiterated a “neutral” rating and issued a $87.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Finally, Wall Street Zen downgraded Zoom Communications from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 15th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $93.82.

Zoom Communications Stock Performance

The business’s fifty day moving average price is $85.27 and its two-hundred day moving average price is $81.66. The firm has a market capitalization of $28.27 billion, a P/E ratio of 18.57, a PEG ratio of 7.71 and a beta of 0.87.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Monday, November 24th. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.44 by $0.08. The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.21 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. Zoom Communications’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $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. Sell-side analysts predict that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Insider Activity

In other news, COO Aparna Bawa sold 12,137 shares of the firm’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $81.37, for a total value of $987,587.69. Following the completion of the sale, the chief operating officer owned 1,978 shares of the company’s stock, valued at $160,949.86. This trade represents a 85.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,568 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $86.55, for a total value of $655,010.40. Following the transaction, the insider directly owned 136,182 shares in the company, valued at $11,786,552.10. This represents a 5.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 317,745 shares of company stock worth $27,002,595. Company insiders own 10.78% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds and other institutional investors have recently modified their holdings of ZM. Norges Bank purchased a new stake in Zoom Communications during the 2nd quarter worth approximately $539,998,000. AQR Capital Management LLC raised its holdings in shares of Zoom Communications by 23.4% in the third quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock worth $699,357,000 after buying an additional 1,607,253 shares during the last quarter. Acadian Asset Management LLC lifted its stake in shares of Zoom Communications by 41.1% during the second quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company’s stock worth $293,909,000 after buying an additional 1,097,333 shares during the period. Two Sigma Investments LP purchased a new stake in shares of Zoom Communications during the third quarter valued at $86,709,000. Finally, Vanguard Group Inc. grew its holdings in shares of Zoom Communications by 4.0% during the third quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock valued at $2,139,852,000 after buying an additional 986,164 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.