Royal Bank Of Canada Reiterates “Outperform” Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reissued by analysts at Royal Bank Of Canada in a report released on Tuesday,Benzinga reports. They presently have a $130.00 price objective on the stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 51.26% from the company’s current price.

Several other research firms also recently weighed in on ZM. Morgan Stanley boosted their target price on Zoom Communications from $92.00 to $105.00 and gave the company an “equal weight” rating in a report on Friday, May 22nd. Wells Fargo & Company raised their price target on Zoom Communications from $90.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Friday, May 22nd. Cantor Fitzgerald lifted their price target on Zoom Communications from $87.00 to $104.00 and gave the stock a “neutral” rating in a research report on Friday, May 22nd. Argus upgraded Zoom Communications to a “hold” rating in a research note on Monday, March 9th. Finally, HSBC increased their price objective on Zoom Communications from $107.00 to $133.00 and gave the company a “buy” rating in a report on Tuesday, June 2nd. Fifteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $109.33.

Zoom Communications Trading Down 0.2%

NASDAQ:ZM traded down $0.20 during midday trading on Tuesday, hitting $85.94. 633,480 shares of the company were exchanged, compared to its average volume of 4,416,419. The company has a fifty day simple moving average of $96.79 and a 200 day simple moving average of $88.85. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $114.74. The company has a market capitalization of $25.20 billion, a PE ratio of 12.61, a price-to-earnings-growth ratio of 4.77 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share 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 analysts’ expectations of $1.22 billion. During the same period in the previous year, the company earned $1.43 earnings per share. Zoom Communications’s quarterly revenue 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. As a group, equities research analysts expect that Zoom Communications will post 4.09 EPS for the current year.

Insider Activity

In other news, COO Aparna Bawa sold 12,886 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at $173,312.36. The trade was a 86.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the sale, the insider owned 141,971 shares of the company’s stock, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their position. 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 sold 156,638 shares of company stock worth $13,900,194 in the last ninety days. 8.83% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

Several hedge funds have recently modified their holdings of ZM. Norges Bank purchased a new position in Zoom Communications in the fourth quarter worth $509,788,000. AQR Capital Management LLC boosted its position in shares of Zoom Communications by 43.9% during the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock worth $1,052,328,000 after purchasing an additional 3,718,186 shares in the last quarter. Atreides Management LP acquired a new position in shares of Zoom Communications during the 1st quarter worth $105,761,000. Two Sigma Investments LP acquired a new position in shares of Zoom Communications during the 3rd quarter worth $86,709,000. Finally, Vanguard Group Inc. grew its stake in shares of Zoom Communications by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock worth $2,327,002,000 after purchasing an additional 1,029,623 shares during the period. 66.54% of the stock is 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.