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

Needham & Company LLC reaffirmed their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a report published on Wednesday,Benzinga reports. Needham & Company LLC currently has a $130.00 target price on the stock.

Several other brokerages have also commented on ZM. Weiss Ratings lowered shares of Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 14th. HSBC lifted their price target on shares of Zoom Communications from $107.00 to $133.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. UBS Group upped their price objective on Zoom Communications from $105.00 to $115.00 and gave the stock a “neutral” rating in a report on Thursday, August 20th. Bank of America started coverage on Zoom Communications in a research report on Wednesday, August 19th. They issued a “buy” rating and a $130.00 target price on the stock. Finally, Piper Sandler lifted their target price on Zoom Communications from $91.00 to $107.00 and gave the company a “neutral” rating in a report on Friday, May 22nd. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, Zoom Communications currently has an average rating of “Moderate Buy” and an average target price of $112.55.

Zoom Communications Price Performance

ZM opened at $98.43 on Wednesday. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74. The business has a 50-day moving average of $94.65 and a two-hundred day moving average of $91.44. The stock has a market capitalization of $28.86 billion, a price-to-earnings ratio of 9.11, a price-to-earnings-growth ratio of 5.12 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data 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. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the firm posted $1.53 EPS. The company’s revenue was up 4.9% on a year-over-year basis. 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. Equities research analysts anticipate that Zoom Communications will post 4.25 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other news, CEO Eric S. Yuan sold 12,100 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total value of $1,212,057.00. Following the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,303,709.66. This trade represents a 34.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,644 shares of the business’s stock in a transaction dated Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total value of $703,095.12. Following the transaction, the insider owned 148,403 shares in the company, valued at approximately $13,650,107.94. This represents a 4.90% decrease in their position. 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 sold 56,155 shares of company stock worth $5,654,761 over the last three months. 8.83% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

A number of hedge funds have recently made changes to their positions in ZM. California State Teachers Retirement System increased its holdings in shares of Zoom Communications by 8,620.6% in the 2nd quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock valued at $2,761,908,000 after acquiring an additional 31,632,917 shares during the last quarter. Norges Bank bought a new position in Zoom Communications during the fourth quarter worth $509,788,000. AQR Capital Management LLC lifted its stake in Zoom Communications by 43.9% during the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock worth $1,052,328,000 after purchasing an additional 3,718,186 shares during the last quarter. Atreides Management LP acquired a new position in Zoom Communications in the first quarter worth $105,761,000. Finally, Two Sigma Investments LP acquired a new position in Zoom Communications in the third quarter worth $86,709,000. Institutional investors and hedge funds own 66.54% of the company’s stock.

Key Zoom Communications News

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

• Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year, and adjusted EPS of $1.55, exceeding analyst estimates of $1.27 billion and $1.48, respectively. Enterprise revenue grew 7.8% to $787.5 million, while remaining performance obligations increased 14%, indicating solid demand from larger customers. Zoom Communications Q2 2027 Earnings Call Summary
• Positive Sentiment: ZM recently moved above its 50-day moving average, a technical development that can signal improving short-term momentum and may attract additional technical buyers. Zoom Communications Breaks Above 50-Day Moving Average
• Positive Sentiment: Some analysts remain constructive: Needham reiterated a “Buy” rating, while another analysis cited Zoom’s cash position, 24.6% GAAP operating margin and potential value from its Anthropic investment as reasons for optimism. Needham Reiterates Buy Rating
• Neutral Sentiment: Analyst views remain mixed. Citizens JMP assigned a “Market Perform” rating and KeyCorp reaffirmed “Sector Weight,” suggesting the earnings beat may already be reflected in the stock’s valuation. Citizens JMP Market Perform Rating
• Negative Sentiment: Growth remains uneven: online revenue increased only 0.6% to $489.7 million, and management’s third-quarter profit outlook was weaker than expected. The cautious guidance overshadowed the quarterly earnings beat and raised concerns about Zoom’s ability to accelerate companywide growth through AI and enterprise products. Zoom Enterprise and Online Revenue Analysis

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.