Zoom Communications (NASDAQ:ZM) Hits New 12-Month High – What’s Next?

Zoom Communications, Inc. (NASDAQ:ZM) shares reached a new 52-week high during trading on Thursday . The company traded as high as $97.63 and last traded at $97.3930, with a volume of 2416615 shares changing hands. The stock had previously closed at $95.76.

Analyst Ratings Changes

ZM has been the subject of a number of recent analyst reports. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research report on Tuesday, February 24th. KeyCorp upped their target price on shares of Zoom Communications from $69.00 to $74.00 and gave the stock an “underweight” rating in a research report on Thursday, February 26th. BTIG Research cut their target price on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. Wolfe Research upgraded shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price for the company in a research report on Thursday, February 5th. Finally, Benchmark cut their target price on shares of Zoom Communications from $115.00 to $110.00 and set a “buy” rating for the company in a research report on Tuesday, February 24th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $95.32.

Zoom Communications Price Performance

The firm has a market capitalization of $28.63 billion, a P/E ratio of 15.67, a P/E/G ratio of 5.20 and a beta of 0.88. The firm’s 50 day simple moving average is $81.94 and its two-hundred day simple moving average is $84.62.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities research analysts forecast that Zoom Communications, Inc. will post 3.94 EPS for the current year.

Insider Activity

In other news, Director Santiago Subotovsky sold 2,643 shares of the company’s stock in a transaction dated Thursday, April 16th. The shares were sold at an average price of $87.32, for a total transaction of $230,786.76. Following the completion of the transaction, the director directly owned 150,799 shares of the company’s stock, valued at approximately $13,167,768.68. This represents a 1.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 company’s 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 approximately $2,477,576.44. This trade represents a 21.79% decrease in their ownership of the stock. 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 quarter, insiders sold 138,887 shares of company stock valued at $11,590,330. 10.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Zoom Communications by 10.5% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company’s stock worth $19,697,000 after buying an additional 22,704 shares in the last quarter. Strive Asset Management LLC bought a new position in Zoom Communications in the third quarter worth about $1,238,000. LSV Asset Management raised its stake in Zoom Communications by 5.0% in the third quarter. LSV Asset Management now owns 1,069,440 shares of the company’s stock worth $88,229,000 after buying an additional 50,579 shares in the last quarter. Krilogy Financial LLC bought a new position in Zoom Communications in the third quarter worth about $1,963,000. Finally, Boston Common Asset Management LLC bought a new position in Zoom Communications in the fourth quarter worth about $2,163,000. 66.54% of the stock is owned by institutional investors.

Zoom Communications Company Profile

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.