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

Zoom Communications, Inc. (NASDAQ:ZM) has been given an average rating of “Moderate Buy” by the twenty-seven research firms that are presently covering the stock, Marketbeat.com reports. Twelve research analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $109.3333.

ZM has been the subject of several research reports. Royal Bank Of Canada increased their price objective on shares of Zoom Communications from $110.00 to $130.00 and gave the company an “outperform” rating in a report on Friday, May 22nd. Argus raised shares of Zoom Communications to a “hold” rating in a report on Monday, March 9th. Jefferies Financial Group increased their price objective on shares of Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a report on Friday, May 22nd. Sanford C. Bernstein dropped their price objective on shares of Zoom Communications from $90.00 to $88.00 and set a “market perform” rating for the company in a report on Thursday, February 26th. Finally, Benchmark increased their price objective on shares of Zoom Communications from $115.00 to $121.00 and gave the company a “buy” rating in a report on Thursday, May 21st.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, 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 transaction of $562,102.92. Following the completion of the transaction, the director owned 142,882 shares of the company’s stock, valued at $15,228,363.56. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed 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. Also, CFO Michelle Chang sold 8,489 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the transaction, the chief financial officer directly owned 30,467 shares of the company’s stock, valued at $2,477,576.44. This trade represents a 21.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 156,638 shares of company stock worth $13,900,194. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Advocate Investing Services LLC bought a new position in shares of Zoom Communications in the 4th quarter valued at about $26,000. Strive Financial Group LLC bought a new position in shares of Zoom Communications in the 4th quarter valued at about $27,000. Toth Financial Advisory Corp bought a new position in shares of Zoom Communications in the 4th quarter valued at about $28,000. Rexford Capital Inc. lifted its holdings in shares of Zoom Communications by 45.7% in 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 lifted its holdings 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 valued at $33,000 after acquiring an additional 200 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

Zoom Communications Stock Performance

Shares of ZM stock opened at $85.47 on Thursday. Zoom Communications has a 52-week low of $69.15 and a 52-week high of $114.74. The firm has a market capitalization of $25.06 billion, a PE ratio of 12.55, a PEG ratio of 4.77 and a beta of 1.01. The stock has a fifty day simple moving average of $96.84 and a two-hundred day simple moving average of $88.92.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the business posted $1.43 EPS. Zoom Communications’s revenue for the quarter 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. On average, sell-side analysts forecast that Zoom Communications will post 4.08 EPS for the current fiscal year.

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.