Zoom Communications, Inc. (NASDAQ:ZM) Given Average Rating of “Moderate Buy” by Brokerages

Zoom Communications, Inc. (NASDAQ:ZM) has received a consensus recommendation of “Moderate Buy” from the twenty-seven ratings firms that are currently covering the stock, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $109.3333.

A number of equities research analysts have recently weighed in on ZM shares. Cantor Fitzgerald lifted their price target on shares of Zoom Communications from $87.00 to $104.00 and gave the company a “neutral” rating in a research report on Friday, May 22nd. BTIG Research increased their price target on Zoom Communications from $100.00 to $125.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Piper Sandler raised their price objective on Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research note on Friday, May 22nd. Morgan Stanley lifted their price objective on Zoom Communications from $92.00 to $105.00 and gave the company an “equal weight” rating in a report on Friday, May 22nd. Finally, Jefferies Financial Group upped their target price on Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a research report on Friday, May 22nd.

Insider Buying and Selling

In other Zoom Communications news, CEO Eric S. Yuan sold 12,100 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.60, for a total transaction of $1,289,860.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $90.80, for a total transaction of $770,801.20. Following the completion of the transaction, the chief financial officer directly owned 35,452 shares in the company, valued at approximately $3,219,041.60. This represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 48,517 shares of company stock worth $5,061,783. Company insiders own 8.83% of the company’s stock.

Institutional Trading of Zoom Communications

A number of institutional investors and hedge funds have recently made changes to their positions in ZM. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Strive Financial Group LLC acquired a new position in Zoom Communications during the fourth quarter valued at approximately $27,000. Toth Financial Advisory Corp bought a new stake in Zoom Communications during the fourth quarter worth $28,000. Thurston Springer Miller Herd & Titak Inc. lifted its stake in Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock worth $30,000 after purchasing an additional 200 shares during the last quarter. Finally, Rexford Capital Inc. lifted its stake in Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after purchasing an additional 122 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $91.13 on Monday. Zoom Communications has a 52 week low of $69.15 and a 52 week high of $114.74. The firm’s 50-day simple moving average is $94.75 and its 200 day simple moving average is $88.93. The firm has a market cap of $26.72 billion, a price-to-earnings ratio of 13.38, a P/E/G ratio of 4.86 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the previous year, the firm posted $1.43 EPS. The business’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. Sell-side analysts anticipate that Zoom Communications will post 4.23 EPS for the current 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.