Cantor Fitzgerald Reaffirms "Neutral" Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "neutral" rating restated by investment analysts at Cantor Fitzgerald in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $104.00 price objective on the stock. Cantor Fitzgerald's target price points to a potential upside of 6.71% from the stock's current price.

Other equities analysts have also recently issued research reports about the stock. Needham & Company LLC reaffirmed a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a research report on Wednesday, August 26th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $130.00 price target on shares of Zoom Communications in a research report on Wednesday. Oppenheimer raised shares of Zoom Communications from a "market perform" rating to an "outperform" rating and set a $130.00 price target on the stock in a research report on Wednesday. KeyCorp reaffirmed a "sector weight" rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $114.48.

Zoom Communications Stock Performance

Shares of NASDAQ ZM opened at $97.46 on Wednesday. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The stock has a market cap of $28.44 billion, a price-to-earnings ratio of 9.02, a PEG ratio of 4.51 and a beta of 1.03. The firm's 50-day simple moving average is $96.88 and its 200 day simple moving average is $94.88.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter last year, the firm earned $1.53 EPS. The firm's revenue for the quarter was up 4.9% compared to the same quarter last year. 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, sell-side analysts predict that Zoom Communications will post 4.27 EPS for the current year.

Insider Transactions at Zoom Communications

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.46, for a total value of $844,315.94. Following the completion of the sale, the chief financial officer owned 40,438 shares in the company, valued at approximately $4,021,963.48. This trade represents a 17.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 Yuan sold 12,100 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the completion of the sale, the chief executive officer owned 22,998 shares of the company's stock, valued at approximately $2,155,832.52. This trade represents a 34.47% 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. In the last 90 days, insiders have sold 71,209 shares of company stock worth $6,938,989. Company insiders own 8.83% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Pacer Advisors Inc. increased its stake in Zoom Communications by 10.8% in the 1st quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company's stock valued at $208,680,000 after buying an additional 253,181 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Zoom Communications by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company's stock valued at $189,051,000 after buying an additional 94,043 shares during the last quarter. Bank of America Corp DE increased its stake in Zoom Communications by 50.5% in the 1st quarter. Bank of America Corp DE now owns 1,767,728 shares of the company's stock valued at $142,108,000 after buying an additional 592,899 shares during the last quarter. Bank of New York Mellon Corp increased its stake in Zoom Communications by 44.5% in the 1st quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company's stock valued at $113,490,000 after buying an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP increased its stake in Zoom Communications by 2.8% in the 1st quarter. First Trust Advisors LP now owns 1,362,501 shares of the company's stock valued at $109,531,000 after buying an additional 36,657 shares during the last quarter. Hedge funds and other institutional investors own 66.54% of the company's stock.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Oppenheimer upgraded Zoom Communications (ZM) from “market perform” to “outperform” and set a $130 price target, citing a more constructive outlook for the stock.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $130 target, while BTIG Research maintained its “buy” rating and $125 target. The targets point to substantial potential appreciation from current levels.
• Positive Sentiment: At Zoomtopia, the company introduced a Unified Context Layer and additional AI-powered products intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools, and events. The initiatives support management’s effort to expand Zoom beyond video conferencing and create new revenue opportunities. Zoom AI strategy announcement
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, adding capabilities related to proof of human access for business customers. The partnership could strengthen Zoom’s ecosystem and address authentication needs as AI-generated content becomes more prevalent. Tools for Humanity partnership
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its “neutral” rating but increased or maintained its target at $104, suggesting limited upside relative to the more bullish analyst forecasts.
• Neutral Sentiment: Investor commentary is focusing on Zoom’s AI-first repositioning, cash-rich balance sheet, and potential to become a broader workplace platform. These arguments may support valuation, but execution and the company’s relatively modest growth remain important risks. Zoom investor session transcript

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.