Zoom Communications (NASDAQ:ZM) Given Buy Rating at Needham & Company LLC

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reissued by equities research analysts at Needham & Company LLC in a research report issued on Thursday,Benzinga reports. They presently have a $130.00 target price on the stock. Needham & Company LLC’s target price points to a potential upside of 47.89% from the stock’s current price.

Other analysts also recently issued reports about the stock. Argus raised shares of Zoom Communications to a “hold” rating in a research report on Monday, March 9th. Jefferies Financial Group lifted their price target on shares of Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a research report on Friday, May 22nd. BTIG Research boosted their price objective on shares of Zoom Communications from $100.00 to $125.00 and gave the stock a “buy” rating in a research note on Friday, May 22nd. Piper Sandler upped their price objective on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a report on Friday, May 22nd. Finally, Cantor Fitzgerald raised their target price on shares of Zoom Communications from $87.00 to $104.00 and gave the company a “neutral” rating in a research note on Friday, May 22nd. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $109.33.

Zoom Communications Stock Performance

Shares of ZM traded down $2.23 on Thursday, reaching $87.90. The stock had a trading volume of 1,593,529 shares, compared to its average volume of 4,412,765. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $114.74. The firm has a market capitalization of $25.78 billion, a price-to-earnings ratio of 12.92, a price-to-earnings-growth ratio of 4.77 and a beta of 1.01. The company has a 50-day simple moving average of $96.75 and a 200-day simple moving average of $88.84.

Zoom Communications (NASDAQ:ZM) last issued its quarterly 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. The company had revenue of $1.24 billion for the quarter, compared to analysts’ expectations of $1.22 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the prior year, the firm 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. On average, analysts expect that Zoom Communications will post 4.08 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other news, Director Santiago Subotovsky sold 5,274 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $109.78, for a total value of $578,979.72. Following the transaction, the director directly owned 137,608 shares in the company, valued at $15,106,606.24. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $111.61, for a total value of $1,350,481.00. 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. Over the last ninety days, insiders have sold 156,638 shares of company stock worth $13,900,194. Company insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of large investors have recently made changes to their positions in ZM. Advocate Investing Services LLC bought a new position in shares of Zoom Communications in the 4th quarter worth approximately $26,000. Strive Financial Group LLC bought a new position in Zoom Communications in the fourth quarter worth approximately $27,000. Toth Financial Advisory Corp purchased a new position in shares of Zoom Communications during the 4th quarter worth $28,000. Rexford Capital Inc. grew its position 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 period. Finally, Sound Income Strategies LLC increased its stake in shares of Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock worth $33,000 after purchasing an additional 200 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors.

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.