Zoom Communications’ (ZM) “Sector Weight” Rating Reiterated at KeyCorp

KeyCorp reaffirmed their sector weight rating on shares of Zoom Communications (NASDAQ:ZM) in a report published on Wednesday morning,Benzinga reports.

ZM has been the topic of several other research reports. UBS Group raised their price objective on Zoom Communications from $105.00 to $115.00 and gave the stock a “neutral” rating in a research note on Thursday, August 20th. Piper Sandler boosted their price objective on Zoom Communications from $91.00 to $107.00 and gave the company a “neutral” rating in a research note on Friday, May 22nd. Citigroup increased their target price on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Robert W. Baird raised their target price on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a research note on Tuesday, May 19th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $130.00 price target on shares of Zoom Communications in a report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, Zoom Communications has a consensus rating of “Moderate Buy” and an average price target of $112.55.

Zoom Communications Price Performance

NASDAQ:ZM opened at $98.43 on Wednesday. The firm 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 has a one year low of $70.70 and a one year high of $114.74. The business has a fifty day moving average price of $94.65 and a 200-day moving average price of $91.44.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the business earned $1.53 earnings per share. Zoom Communications’s quarterly revenue was up 4.9% compared to the same quarter last year. 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. On average, equities research analysts expect that Zoom Communications will post 4.25 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction dated Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total transaction of $703,095.12. Following the completion of the sale, the insider owned 148,403 shares in the company, valued at approximately $13,650,107.94. This trade represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total value of $801,621.63. Following the sale, the director owned 127,060 shares of the company’s stock, valued at $12,874,989.80. This represents a 5.86% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 56,155 shares of company stock valued at $5,654,761 in the last ninety days. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Corient Private Wealth LP raised its position in shares of Zoom Communications by 17.1% during the second quarter. Corient Private Wealth LP now owns 79,755 shares of the company’s stock valued at $6,884,000 after buying an additional 11,675 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Zoom Communications during the second quarter worth $17,053,000. California State Teachers Retirement System boosted its position in shares of Zoom Communications by 8,620.6% during the second quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock worth $2,761,908,000 after acquiring an additional 31,632,917 shares during the last quarter. Ameritas Advisory Services LLC bought a new position in shares of Zoom Communications during the second quarter worth $1,062,000. Finally, Wedmont Private Capital grew its stake in Zoom Communications by 17.0% during the second quarter. Wedmont Private Capital now owns 4,047 shares of the company’s stock valued at $363,000 after acquiring an additional 588 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors.

Key Headlines Impacting Zoom Communications

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

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.