Zoom Communications (NASDAQ:ZM) Price Target Raised to $130.00

Zoom Communications (NASDAQ:ZM) had its price objective hoisted by stock analysts at Needham & Company LLC from $100.00 to $130.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price target suggests a potential upside of 34.37% from the stock’s current price.

ZM has been the subject of several other reports. Jefferies Financial Group reissued a “buy” rating and issued a $118.00 price objective on shares of Zoom Communications in a research report on Friday. KeyCorp raised Zoom Communications from an “underweight” rating to a “sector weight” rating in a research report on Friday. Citigroup increased their price objective on Zoom Communications from $106.00 to $122.00 and gave the company a “buy” rating in a research report on Friday, May 15th. Zacks Research cut Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Finally, Mizuho increased their price objective on Zoom Communications from $100.00 to $120.00 and gave the company an “outperform” rating in a research report on Friday. Fourteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, Zoom Communications presently has a consensus rating of “Moderate Buy” and a consensus target price of $102.65.

Zoom Communications Stock Down 2.7%

Shares of Zoom Communications stock opened at $96.75 on Friday. The stock has a market capitalization of $28.51 billion, a P/E ratio of 15.60, a PEG ratio of 5.69 and a beta of 1.00. The stock has a 50 day moving average price of $88.14 and a two-hundred day moving average price of $86.59. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14. The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. Sell-side analysts anticipate that Zoom Communications will post 3.94 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Michelle Chang sold 8,489 shares of the company’s stock in a transaction on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at approximately $2,477,576.44. This represents a 21.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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, COO Aparna Bawa sold 12,886 shares of the company’s stock in a transaction on Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the completion of the transaction, the chief operating officer owned 1,978 shares of the company’s stock, valued at $173,312.36. The trade was a 86.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 144,329 shares of company stock valued at $12,364,989 in the last ninety days. 11.51% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Zoom Communications by 10.5% during the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company’s stock worth $19,697,000 after acquiring an additional 22,704 shares in the last quarter. Strive Asset Management LLC acquired a new position in Zoom Communications during the third quarter worth $1,238,000. LSV Asset Management raised its stake in Zoom Communications by 5.0% during the third quarter. LSV Asset Management now owns 1,069,440 shares of the company’s stock worth $88,229,000 after acquiring an additional 50,579 shares in the last quarter. Krilogy Financial LLC acquired a new position in Zoom Communications during the third quarter worth $1,963,000. Finally, Sherry Group Inc. acquired a new position in Zoom Communications during the fourth quarter worth $894,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …

About Zoom Communications

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.