Zoom Communications, Inc. (NASDAQ:ZM) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Zoom Communications, Inc. (NASDAQ:ZM) has received a consensus rating of “Moderate Buy” from the twenty-seven analysts that are currently covering the firm, MarketBeat Ratings reports. Twelve research analysts have rated the stock with a hold rating and fifteen have issued a buy rating on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $109.3333.

Several research analysts have weighed in on ZM shares. Wall Street Zen lowered Zoom Communications from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Citizens Jmp reaffirmed a “market perform” rating on shares of Zoom Communications in a research report on Wednesday, May 20th. Morgan Stanley upped their target price on Zoom Communications from $92.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Friday, May 22nd. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, May 1st. Finally, Rosenblatt Securities increased their price objective on Zoom Communications from $115.00 to $130.00 and gave the company a “buy” rating in a report on Friday, May 22nd.

Zoom Communications Price Performance

Shares of ZM stock opened at $105.21 on Friday. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $114.74. The stock’s 50-day moving average is $93.91 and its two-hundred day moving average is $88.06. The firm has a market cap of $30.85 billion, a P/E ratio of 15.45, a PEG ratio of 6.08 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The company had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the firm posted $1.43 EPS. The business’s revenue was up 5.5% compared to the same quarter last year. 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. As a group, research analysts expect that Zoom Communications will post 3.94 EPS for the current year.

Insider Buying and Selling at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares of the company’s stock, valued at approximately $173,312.36. This represents a 86.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the transaction, the director directly owned 142,882 shares in the company, valued at approximately $15,228,363.56. This represents a 3.56% 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 have sold a total of 159,228 shares of company stock worth $14,102,835 in the last 90 days. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Advocate Investing Services LLC acquired a new position in shares of Zoom Communications during the 4th quarter valued at about $26,000. Strive Financial Group LLC acquired a new position in shares of Zoom Communications during the 4th quarter valued at about $27,000. Toth Financial Advisory Corp acquired a new position in shares of Zoom Communications during the 4th quarter valued at about $28,000. Rexford Capital Inc. increased its holdings in shares of Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after acquiring an additional 122 shares during the last quarter. Finally, Sound Income Strategies LLC increased its holdings in shares of Zoom Communications by 94.8% during the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock valued at $33,000 after acquiring an additional 200 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

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.