Zoom Communications (NASDAQ:ZM) Given “Buy” Rating at Needham & Company LLC

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

A number of other equities analysts have also recently weighed in on ZM. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $104.00 price target on shares of Zoom Communications in a research note on Wednesday. UBS Group reduced their price objective on shares of Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a research note on Wednesday. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Sanford C. Bernstein restated a “market perform” rating and set a $108.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, KeyCorp restated a “sector weight” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Sixteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of “Moderate Buy” and an average price target of $114.48.

Zoom Communications Price Performance

Zoom Communications stock opened at $99.44 on Thursday. The stock’s 50 day moving average price is $96.77 and its 200 day moving average price is $95.00. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74. The company has a market cap of $29.01 billion, a PE ratio of 9.21, a price-to-earnings-growth ratio of 4.50 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The firm 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 business posted $1.53 earnings per share. Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. 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, equities research analysts anticipate that Zoom Communications will post 4.27 EPS for the current fiscal year.

Insider Buying and Selling

In other Zoom Communications news, CEO Eric Yuan sold 12,100 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the completion of the transaction, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. This trade represents a 34.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through 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 company’s stock in a transaction dated 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 directly owned 40,438 shares in the company, valued at $4,021,963.48. This trade represents a 17.35% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 71,209 shares of company stock valued at $6,938,989 in the last 90 days. 8.83% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Communications

Institutional investors and hedge funds have recently modified their holdings of the business. Pacer Advisors Inc. lifted its holdings in shares of Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after purchasing an additional 253,181 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Zoom Communications by 4.2% in the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after purchasing an additional 94,043 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Zoom Communications by 50.5% in the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after purchasing an additional 592,899 shares in the last quarter. Bank of New York Mellon Corp lifted its holdings in shares of Zoom Communications by 44.5% in the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after purchasing an additional 434,981 shares in the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Zoom Communications by 2.8% in the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after purchasing an additional 36,657 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom introduced a Unified Context Layer and new AI capabilities across Zoom Workplace, customer experience, developer tools, and events. The products are designed to convert meeting and customer conversations into completed tasks, potentially increasing customer engagement and creating additional revenue opportunities. Zoom Advances Its AI Strategy With a New Unified Context Layer
• Positive Sentiment: Oppenheimer upgraded Zoom from Perform to Outperform and set a $130 price target, saying the company’s newer AI services and platform traction were impressive. Rosenblatt and BTIG also reaffirmed bullish ratings with $130 and $125 targets, respectively. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: RBC maintained an Outperform rating with a $130 target, citing signs of revenue reacceleration supported by enterprise growth. The analyst activity helped reinforce expectations that Zoom’s shift beyond video meetings can improve growth. Zoom Communications’ Revenue Reacceleration Supported by Enterprise Growth
• Positive Sentiment: Zoom also unveiled long-term financial targets and additional AI-powered offerings, giving investors greater visibility into its growth strategy and supporting the stock’s upward move. Why Is Zoom Communications Stock Gaining Wednesday?
• Neutral Sentiment: Cantor Fitzgerald reaffirmed a Neutral rating with a $104 price target, indicating that some analysts remain cautious about how quickly the new AI initiatives will translate into measurable revenue and earnings growth.

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.