Zoom Communications, Inc. (NASDAQ:ZM) Stock Rated “Moderate Buy” by Wall Street Analysts

Zoom Communications, Inc. (NASDAQ:ZM) has been assigned a consensus recommendation of “Moderate Buy” from the twenty-seven research firms that are presently covering the company, Marketbeat reports. Eleven research analysts have rated the stock with a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $114.48.

Several equities analysts have recently issued reports on ZM shares. Citizens Jmp reaffirmed a “market perform” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. KeyCorp reissued a “sector weight” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Royal Bank Of Canada restated an “outperform” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday, October 21st. Bank of America initiated coverage on shares of Zoom Communications in a report on Wednesday, August 19th. They issued a “buy” rating and a $130.00 target price for the company. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Thursday, October 22nd.

Zoom Communications Stock Down 0.2%

Zoom Communications stock opened at $91.84 on Wednesday. The company has a market capitalization of $26.80 billion, a P/E ratio of 8.50, a PEG ratio of 4.11 and a beta of 1.02. The stock’s 50 day moving average is $94.99 and its 200 day moving average is $91.99. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the previous year, the business earned $1.53 earnings per share. The firm’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. As a group, equities analysts expect that Zoom Communications will post 4.24 EPS for the current year.

Insider Activity at Zoom Communications

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $99.26, for a total value of $758,842.70. Following the completion of the transaction, the insider directly owned 151,813 shares in the company, valued at $15,068,958.38. The trade was a 4.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric Yuan sold 12,100 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the completion of the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. The trade was a 34.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 68,845 shares of company stock valued at $6,711,415 over the last ninety days. Corporate insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Sumitomo Mitsui DS Asset Management Company Ltd grew its holdings in Zoom Communications by 0.4% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock valued at $2,380,000 after purchasing an additional 107 shares during the period. Fortitude Family Office LLC increased its position in Zoom Communications by 27.2% in the third quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock worth $48,000 after buying an additional 114 shares in the last quarter. Rexford Capital Inc. raised its stake in shares of Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after buying an additional 122 shares during the period. MGO One Seven LLC lifted its position in shares of Zoom Communications by 7.3% during the 3rd quarter. MGO One Seven LLC now owns 2,820 shares of the company’s stock valued at $256,000 after buying an additional 193 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its position in shares of Zoom Communications by 133.3% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after buying an additional 200 shares in the last quarter. 66.54% of the stock is owned by institutional investors.

About Zoom Communications

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.