Zoom Communications (NASDAQ:ZM) Sets New 1-Year High – Time to Buy?

Zoom Communications, Inc. (NASDAQ:ZM)’s share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $111.56 and last traded at $107.12, with a volume of 4107053 shares changing hands. The stock had previously closed at $109.21.

Analyst Upgrades and Downgrades

ZM has been the topic of several recent research reports. Needham & Company LLC reiterated a “buy” rating and set a $100.00 price objective on shares of Zoom Communications in a research report on Friday, March 13th. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research report on Tuesday, February 24th. Zacks Research lowered Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Argus upgraded Zoom Communications to a “hold” rating in a research report on Monday, March 9th. Finally, Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 1st. Fourteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Stock Down 1.9%

The stock has a market cap of $31.57 billion, a PE ratio of 17.28, a P/E/G ratio of 6.25 and a beta of 1.00. The company has a fifty day moving average price of $84.34 and a 200 day moving average price of $85.73.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). The company had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm’s quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.41 EPS. 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, research analysts predict that Zoom Communications, Inc. will post 3.94 earnings per share for the current year.

Insider Transactions at Zoom Communications

In related news, COO Aparna Bawa sold 12,886 shares of the firm’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $87.62, for a total value of $1,129,071.32. Following the sale, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at $173,312.36. This trade represents a 86.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the sale, the chief financial officer directly owned 30,467 shares in the company, valued at $2,477,576.44. The trade was a 21.79% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 144,329 shares of company stock valued at $12,364,989. 10.78% of the stock is currently owned by corporate insiders.

Institutional Trading of Zoom Communications

Several large investors have recently modified their holdings of ZM. Norges Bank bought a new stake in shares of Zoom Communications in the fourth quarter worth about $509,788,000. AQR Capital Management LLC grew its stake in shares of Zoom Communications by 43.9% in the fourth 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 during the last quarter. Two Sigma Investments LP bought a new stake in shares of Zoom Communications in the third quarter worth about $86,709,000. Vanguard Group Inc. grew its stake in shares of Zoom Communications by 4.0% in the fourth 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 last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Zoom Communications by 46.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company’s stock worth $218,282,000 after purchasing an additional 836,594 shares during the last quarter. 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.