Zoom Communications (NASDAQ:ZM) Cut to Hold at Wall Street Zen

Zoom Communications (NASDAQ:ZM) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

Other research analysts have also recently issued research reports about the stock. Rosenblatt Securities restated a “buy” rating and set a $115.00 price target on shares of Zoom Communications in a research note on Thursday, February 26th. Royal Bank Of Canada reissued an “outperform” rating and issued a $100.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. BTIG Research cut their target price on Zoom Communications from $105.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. Morgan Stanley boosted their price target on Zoom Communications from $85.00 to $92.00 and gave the company an “equal weight” rating in a research note on Tuesday, November 25th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $87.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Price Performance

Shares of ZM stock opened at $77.50 on Friday. The stock has a market cap of $22.95 billion, a P/E ratio of 12.50, a price-to-earnings-growth ratio of 4.41 and a beta of 0.93. The stock has a fifty day moving average price of $86.41 and a 200 day moving average price of $84.52. Zoom Communications has a one year low of $64.41 and a one year high of $97.58.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). The business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The company’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.41 EPS. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. Equities research analysts anticipate that Zoom Communications will post 2.93 EPS for the current year.

Insider Buying and Selling at Zoom Communications

In other news, Director Santiago Subotovsky sold 2,475 shares of the business’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $77.42, for a total transaction of $191,614.50. Following the completion of the sale, the director owned 153,442 shares in the company, valued at $11,879,479.64. The trade was a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Velchamy Sankarlingam sold 7,568 shares of the firm’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $86.55, for a total value of $655,010.40. Following the completion of the transaction, the insider owned 136,182 shares in the company, valued at approximately $11,786,552.10. This represents a 5.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 183,089 shares of company stock worth $15,730,024 over the last 90 days. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC boosted its stake in shares of Zoom Communications by 16.8% in the 1st quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after purchasing an additional 1,153 shares during the last quarter. Intech Investment Management LLC raised its stake in shares of Zoom Communications by 59.1% during the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after buying an additional 6,235 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in Zoom Communications by 82.0% in the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after buying an additional 397 shares during the period. Sivia Capital Partners LLC bought a new position in Zoom Communications in the second quarter valued at approximately $217,000. Finally, Envestnet Asset Management Inc. boosted its stake in Zoom Communications by 68.2% in the second quarter. Envestnet Asset Management Inc. now owns 49,370 shares of the company’s stock valued at $3,850,000 after acquiring an additional 20,017 shares during the last quarter. 66.54% of the stock is currently owned by institutional investors and hedge funds.

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.