Zoom Communications' (ZM) Market Perform Rating Reiterated at Citizens Jmp

Key Points

• Citizens Jmp reiterated a “Market Perform” rating on Zoom Communications, while broader analyst sentiment remains a “Moderate Buy” with a consensus price target of $111.64.
• Zoom reported quarterly adjusted earnings of $1.55 per share and revenue of $1.28 billion, beating estimates; revenue rose 4.9% year over year, and fiscal 2027 EPS guidance was set at $6.08–$6.12.
• Despite the earnings beat, Zoom’s third-quarter profit outlook came in below expectations, reflecting concerns about competition, margin pressure and the pace of AI monetization. Insiders sold 56,155 shares worth about $5.65 million during the last quarter.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "market perform" rating reissued by investment analysts at Citizens Jmp in a research note issued on Wednesday,Benzinga reports.

Other analysts have also recently issued research reports about the stock. Rosenblatt Securities reissued a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a research note on Friday, August 21st. Bank of America assumed coverage on shares of Zoom Communications in a research note on Wednesday, August 19th. They issued a "buy" rating and a $130.00 price target on the stock. Robert W. Baird lifted their price objective on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Tuesday, May 19th. KeyCorp reiterated a "sector weight" rating on shares of Zoom Communications in a research note on Wednesday. Finally, Needham & Company LLC reissued a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $111.64.

Zoom Communications Stock Performance

Zoom Communications stock opened at $100.92 on Wednesday. The company's fifty day moving average price is $94.00 and its 200 day moving average price is $91.30. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The stock has a market capitalization of $29.59 billion, a P/E ratio of 14.82, a P/E/G ratio of 5.53 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period in the prior year, the business posted $1.53 earnings per share. 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. Sell-side analysts predict that Zoom Communications will post 4.21 EPS for the current year.

Insider Buying and Selling

In other news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the sale, the insider owned 148,403 shares of the company's stock, valued at $13,650,107.94. This represents a 4.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the sale, the director owned 127,060 shares of the company's stock, valued at $12,874,989.80. This represents a 5.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 56,155 shares of company stock valued at $5,654,761 in the last quarter. Corporate insiders own 8.83% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Zoom Communications during the second quarter worth $17,053,000. California State Teachers Retirement System lifted its stake in shares of Zoom Communications by 8,620.6% in the 2nd quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company's stock valued at $2,761,908,000 after purchasing an additional 31,632,917 shares during the last quarter. Ameritas Advisory Services LLC acquired a new position in shares of Zoom Communications in the 2nd quarter valued at $1,062,000. Wedmont Private Capital grew its holdings in shares of Zoom Communications by 17.0% during the 2nd quarter. Wedmont Private Capital now owns 4,047 shares of the company's stock worth $363,000 after purchasing an additional 588 shares during the period. Finally, HB Wealth Management LLC grew its holdings in shares of Zoom Communications by 27.2% during the 2nd quarter. HB Wealth Management LLC now owns 8,014 shares of the company's stock worth $692,000 after purchasing an additional 1,712 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

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.

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