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

Zoom Communications, Inc. (NASDAQ:ZM) has earned an average recommendation of “Hold” from the twenty-six ratings firms that are presently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation and eleven have given a buy recommendation to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $92.4286.

Several equities analysts have issued reports on ZM shares. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Zacks Research cut Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Monday, November 10th. UBS Group assumed coverage on Zoom Communications in a research note on Monday, October 20th. They set a “neutral” rating and a $85.00 target price on the stock. William Blair reaffirmed an “outperform” rating on shares of Zoom Communications in a research report on Tuesday, September 30th. Finally, Wall Street Zen lowered Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th.

Insider Activity at Zoom Communications

In other news, CEO Eric S. Yuan sold 73,378 shares of Zoom Communications stock in a transaction on Monday, November 17th. The shares were sold at an average price of $82.73, for a total transaction of $6,070,561.94. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,660 shares of the business’s stock in a transaction on Friday, October 10th. The shares were sold at an average price of $82.00, for a total transaction of $628,120.00. Following the sale, the insider directly owned 132,795 shares in the company, valued at $10,889,190. This trade represents a 5.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 386,898 shares of company stock worth $32,105,164 in the last 90 days. 11.51% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

Several large investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Zoom Communications in the second quarter valued at about $539,998,000. AQR Capital Management LLC boosted its position in Zoom Communications by 23.4% in the third quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock valued at $699,357,000 after buying an additional 1,607,253 shares during the last quarter. Acadian Asset Management LLC boosted its position in Zoom Communications by 41.1% in the second quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company’s stock valued at $293,909,000 after buying an additional 1,097,333 shares during the last quarter. Two Sigma Investments LP acquired a new position in Zoom Communications in the 3rd quarter worth approximately $86,709,000. Finally, Vanguard Group Inc. increased its holdings in Zoom Communications by 4.0% in the 3rd quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock worth $2,139,852,000 after buying an additional 986,164 shares during the period. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications Stock Performance

ZM stock opened at $87.65 on Friday. Zoom Communications has a one year low of $64.41 and a one year high of $91.04. The firm has a market cap of $25.95 billion, a price-to-earnings ratio of 17.05, a PEG ratio of 7.94 and a beta of 0.81. The firm has a 50-day simple moving average of $82.77 and a two-hundred day simple moving average of $79.83.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The firm had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The company’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.38 EPS. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. As a group, equities analysts predict that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.