Zoom Communications (NASDAQ:ZM) Earns Buy Rating from Needham & Company LLC

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by Needham & Company LLC in a report issued on Thursday, Benzinga reports. They currently have a $130.00 target price on the stock. Needham & Company LLC‘s target price indicates a potential upside of 30.73% from the company’s current price.

Several other equities research analysts have also weighed in on ZM. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $108.00 target price on shares of Zoom Communications in a report on Wednesday, August 26th. BTIG Research reaffirmed a “buy” rating and issued a $125.00 target price on shares of Zoom Communications in a report on Wednesday. UBS Group lowered their target price on shares of Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a report on Wednesday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a report on Wednesday. Finally, Yorkville Ives began coverage on shares of Zoom Communications in a report on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 target price on the stock. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Stock Performance

Shares of ZM stock opened at $99.44 on Thursday. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74. The stock has a market cap of $29.01 billion, a price-to-earnings ratio of 9.21, a P/E/G ratio of 4.50 and a beta of 1.03. The firm has a fifty day moving average of $96.77 and a 200-day moving average of $95.00.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the prior year, the company posted $1.53 EPS. The business’s revenue was up 4.9% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. On average, sell-side analysts predict that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction on Monday, October 12th. The shares were sold at an average price of $99.46, for a total transaction of $844,315.94. Following the completion of the sale, the chief financial officer owned 40,438 shares of the company’s stock, valued at $4,021,963.48. This represents a 17.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction on Monday, October 12th. The stock was sold at an average price of $99.26, for a total transaction of $758,842.70. Following the sale, the insider directly owned 151,813 shares of the company’s stock, valued at $15,068,958.38. This represents a 4.79% 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. In the last three months, insiders have sold 71,209 shares of company stock valued at $6,938,989. Corporate insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Several large investors have recently made changes to their positions in ZM. Root Financial Partners LLC bought a new stake in shares of Zoom Communications during the third quarter worth $84,000. Aire Advisors LLC bought a new stake in shares of Zoom Communications during the third quarter worth $273,000. Quadrant Capital Group LLC grew its position in Zoom Communications by 2,161.0% in the third quarter. Quadrant Capital Group LLC now owns 4,522 shares of the company’s stock valued at $444,000 after purchasing an additional 4,322 shares in the last quarter. Nisa Investment Advisors LLC grew its position in Zoom Communications by 29.1% in the third quarter. Nisa Investment Advisors LLC now owns 10,484 shares of the company’s stock valued at $952,000 after purchasing an additional 2,364 shares in the last quarter. Finally, Bank Pictet & Cie Europe AG grew its position in Zoom Communications by 5.9% in the third quarter. Bank Pictet & Cie Europe AG now owns 7,177 shares of the company’s stock valued at $651,000 after purchasing an additional 403 shares in the last quarter. Institutional investors own 66.54% of the company’s stock.

Key Stories Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Analyst upgrades and favorable targets: Oppenheimer upgraded Zoom to Outperform from Perform and set a $130 price target after expressing confidence in the company’s newer AI services. Needham, RBC, and Rosenblatt reaffirmed bullish ratings with $130 targets, while BTIG maintained a Buy rating with a $125 target. These targets imply substantial upside from recent trading levels. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: AI strategy gains investor attention: At Zoomtopia, Zoom introduced a Unified Context Layer and additional AI tools designed to turn meeting conversations into completed tasks across Zoom Workplace, customer experience, developer tools, and events. The products support management’s effort to reposition Zoom as a broader AI-first work platform and create new revenue opportunities. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Enterprise growth and financial outlook: RBC said Zoom’s revenue reacceleration is being supported by enterprise growth. Investors are also responding to long-term financial targets and recent commentary suggesting renewed momentum. Zoom’s latest quarterly results included revenue growth of 4.9% year over year and earnings above consensus estimates.
• Neutral Sentiment: Some analysts remain cautious: Cantor Fitzgerald reaffirmed a Neutral rating, although it raised or maintained a $104 price target. This indicates that while Wall Street sentiment has improved, not all analysts view the AI opportunity as fully reflected in near-term earnings.

About Zoom Communications

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.