Zoom Communications’ (ZM) “Outperform” Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada restated their outperform rating on shares of Zoom Communications (NASDAQ:ZM) in a research note released on Wednesday,Benzinga reports. The brokerage currently has a $130.00 price target on the stock.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Jefferies Financial Group lowered their price objective on Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research report on Wednesday, August 26th. Cantor Fitzgerald restated a “neutral” rating and set a $104.00 target price on shares of Zoom Communications in a report on Wednesday. BTIG Research reaffirmed a “buy” rating and issued a $125.00 target price on shares of Zoom Communications in a research report on Wednesday. Finally, Oppenheimer raised shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 target price on the stock in a research report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Stock Performance

Zoom Communications stock opened at $95.77 on Wednesday. The stock’s 50 day simple moving average is $96.29 and its two-hundred day simple moving average is $95.10. The stock has a market cap of $27.94 billion, a price-to-earnings ratio of 26.50, a PEG ratio of 4.27 and a beta of 1.03. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.53 EPS. 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, analysts predict that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Activity at Zoom Communications

In related news, Director Santiago Subotovsky sold 3,812 shares of the stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $100.56, for a total transaction of $383,334.72. Following the sale, the director directly owned 117,974 shares of the company’s stock, valued at approximately $11,863,465.44. This represents a 3.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 1,500 shares of the firm’s stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $101.25, for a total transaction of $151,875.00. Following the sale, the director owned 6,979 shares of the company’s stock, valued at approximately $706,623.75. This represents a 17.69% 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. Insiders sold a total of 87,414 shares of company stock worth $8,580,692 in the last ninety days. 8.83% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors have recently made changes to their positions in the company. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in shares of Zoom Communications by 0.4% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock worth $2,380,000 after acquiring an additional 107 shares during the last quarter. Fortitude Family Office LLC increased its holdings in shares of Zoom Communications by 27.2% during the third quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock valued at $48,000 after acquiring an additional 114 shares in the last quarter. 3Chopt Investment Partners LLC increased its holdings in shares of Zoom Communications by 1.6% during the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after acquiring an additional 119 shares in the last quarter. Rexford Capital Inc. increased its holdings in shares of Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after acquiring an additional 122 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. raised its position in shares of Zoom Communications by 133.3% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after purchasing an additional 200 shares during the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

More Zoom Communications News

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

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

Zoom Communications Company Profile

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.