Zoom Communications’ (ZM) “Buy” Rating Reiterated at Rosenblatt Securities

Rosenblatt Securities reiterated their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a research report sent to investors on Friday morning,Benzinga reports. The firm currently has a $130.00 price objective on the stock.

A number of other equities research analysts also recently commented on the stock. UBS Group lifted their target price on shares of Zoom Communications from $105.00 to $115.00 and gave the stock a “neutral” rating in a research report on Thursday. Citigroup increased their price target on Zoom Communications from $122.00 to $126.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Bank of America assumed coverage on Zoom Communications in a research note on Wednesday, August 19th. They issued a “buy” rating and a $130.00 price target on the stock. Mizuho lifted their price objective on Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, May 22nd. Finally, Needham & Company LLC reiterated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a research report on Thursday, July 2nd. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $111.64.

Zoom Communications Price Performance

Shares of ZM stock opened at $107.43 on Friday. The company has a 50 day moving average price of $93.62 and a 200-day moving average price of $91.12. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The firm has a market capitalization of $31.50 billion, a PE ratio of 15.78, a P/E/G ratio of 5.67 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. During the same period in the previous year, the company earned $1.43 earnings per share. The firm’s quarterly revenue was up 5.5% on a year-over-year basis. Analysts anticipate that Zoom Communications will post 4.21 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the transaction, the chief financial officer directly owned 35,452 shares in the company, valued at approximately $3,219,041.60. This trade represents a 19.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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, CEO Eric S. Yuan sold 12,100 shares of Zoom Communications stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the transaction, the chief executive officer owned 22,998 shares in the company, valued at $2,303,709.66. This represents a 34.47% 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. Insiders have sold a total of 56,155 shares of company stock valued at $5,654,761 over the last three months. Insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Ameritas Advisory Services LLC bought a new stake in Zoom Communications during the second quarter valued at about $1,062,000. Wedmont Private Capital increased its position in Zoom Communications by 17.0% in the second quarter. Wedmont Private Capital now owns 4,047 shares of the company’s stock worth $363,000 after buying an additional 588 shares in the last quarter. HB Wealth Management LLC raised its stake in shares of Zoom Communications by 27.2% in the second quarter. HB Wealth Management LLC now owns 8,014 shares of the company’s stock worth $692,000 after buying an additional 1,712 shares during the period. Clay Northam Wealth Management LLC bought a new position in shares of Zoom Communications in the second quarter worth about $210,000. Finally, Saudi Central Bank lifted its position in shares of Zoom Communications by 79.0% during the 2nd quarter. Saudi Central Bank now owns 16,756 shares of the company’s stock valued at $1,446,000 after buying an additional 7,396 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

Zoom Communications News Summary

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

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and assigned a $130 price target, implying meaningful upside from recent trading levels. Benzinga
• Positive Sentiment: Analysts expect Zoom’s enterprise business and AI-related product monetization to support second-quarter results. Bank of America also argues that the company’s post-pandemic reset may be nearing completion, supported by new products, improved customer retention and an underappreciated asset. Zacks earnings preview TheStreet Bank of America analysis
• Positive Sentiment: Zoom’s recent earnings momentum remains supportive: the company previously exceeded quarterly EPS and revenue expectations, while revenue grew year over year. The stock also outperformed the broader market in the latest referenced session. Yahoo Finance performance report
• Neutral Sentiment: Bank of America initiated coverage, adding a new institutional view that investors will assess alongside existing recommendations. American Banking News coverage
• Neutral Sentiment: Valuation signals are mixed: Zoom appears inexpensive relative to the market on earnings, roughly market-level on cash flow, but relatively expensive on sales. Technical and historical-market data are also being highlighted ahead of earnings. Trefis valuation analysis Barchart analysis
• Negative Sentiment: Key earnings risks include softness in Zoom’s online segment, customer churn and unfavorable currency effects. Investors are also focused on whether management’s guidance and operating metrics justify the already bullish analyst expectations. Yahoo Finance Q2 estimates

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.