BTIG Research Reaffirms Buy Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reiterated by investment analysts at BTIG Research in a note issued to investors on Wednesday, Benzinga reports. They currently have a $125.00 target price on the stock. BTIG Research‘s target price would indicate a potential upside of 24.36% from the company’s previous close.

Several other research analysts have also weighed in on the stock. Cantor Fitzgerald restated a “neutral” rating and set a $104.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. UBS Group restated a “neutral” rating and set a $112.00 target price on shares of Zoom Communications in a research report on Wednesday. Weiss Ratings upgraded shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Yorkville Ives initiated coverage on shares of Zoom Communications in a research report on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 price target on the stock. Finally, Jefferies Financial Group lowered their price target on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Trading Up 3.1%

Shares of Zoom Communications stock traded up $3.06 on Wednesday, reaching $100.52. 907,809 shares of the stock were exchanged, compared to its average volume of 3,897,116. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74. The business has a fifty day moving average price of $96.88 and a two-hundred day moving average price of $94.88. The firm has a market capitalization of $29.33 billion, a PE ratio of 9.31, a PEG ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last issued its earnings results 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 company 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 business posted $1.53 earnings per share. The firm’s revenue for the quarter 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. Research analysts expect that Zoom Communications will post 4.27 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Eric Yuan sold 12,100 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. This represents a 34.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $94.71, for a total transaction of $284,130.00. Following the transaction, the director directly owned 8,479 shares in the company, valued at $803,046.09. The trade was a 26.13% 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. Over the last ninety days, insiders sold 71,209 shares of company stock valued at $6,938,989. Corporate insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Several institutional investors and hedge funds have recently modified their holdings of the company. Pacer Advisors Inc. lifted its stake in shares of Zoom Communications by 10.8% during the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after buying an additional 253,181 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Zoom Communications by 4.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after buying an additional 94,043 shares during the period. Bank of America Corp DE lifted its stake in shares of Zoom Communications by 50.5% during the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after buying an additional 592,899 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Zoom Communications by 44.5% during the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after buying an additional 434,981 shares during the period. Finally, First Trust Advisors LP lifted its stake in shares of Zoom Communications by 2.8% during the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after buying an additional 36,657 shares during the period. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Oppenheimer upgraded Zoom to Outperform from Perform and set a $130 price target. The firm said it was impressed by traction for Zoom’s newer AI services after attending Zoomtopia, signaling greater confidence that AI can support future growth. Zoom Video upgraded at Oppenheimer on AI platform traction, shares jump
• Positive Sentiment: Zoom introduced a Unified Context Layer and additional AI products designed to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. The initiative supports management’s effort to reposition Zoom as an AI-first business platform rather than primarily a video-conferencing provider. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Other analysts remained constructive: Rosenblatt reaffirmed a Buy rating with a $130 target, while BTIG maintained Buy with a $125 target. These targets imply meaningful potential upside from recent trading levels and reinforce the positive reaction to Zoom’s AI strategy.
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, expanding potential integrations for business customers seeking proof-of-human access and identity capabilities in an AI-heavy environment. Tools for Humanity joins Zoom ISV Exchange Program
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its Neutral rating with a $104 price target. The view suggests limited near-term upside and reflects continued caution about how quickly Zoom’s AI investments will translate into material revenue growth.

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.