BTIG Research Forecasts Strong Price Appreciation for Zoom Communications (NASDAQ:ZM) Stock

Key Points

• BTIG Research raised its price target on Zoom from $100 to $125 and kept a buy rating, implying about 29% upside from the prior close.
• Zoom’s latest earnings beat expectations, with quarterly EPS of $1.55 and revenue of $1.24 billion, both ahead of analyst estimates. The company also reported 5.5% year-over-year revenue growth and raised guidance.
• Analyst sentiment is broadly constructive, with 14 analysts rating the stock a Buy and 12 a Hold, while the average price target stands at $102.65. However, insider selling and some competitive pressure remain notable watchpoints.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price objective upped by BTIG Research from $100.00 to $125.00 in a report released on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's price objective suggests a potential upside of 29.20% from the stock's previous close.

ZM has been the subject of a number of other reports. KeyCorp raised Zoom Communications from an "underweight" rating to a "sector weight" rating in a research report on Friday. Zacks Research lowered Zoom Communications from a "strong-buy" rating to a "hold" rating in a research report on Friday, February 13th. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research report on Wednesday. Benchmark boosted their target price on Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Weiss Ratings raised Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 1st. Fourteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $102.65.

Zoom Communications Trading Down 2.7%

ZM stock opened at $96.75 on Friday. The stock has a 50-day moving average price of $88.14 and a 200-day moving average price of $86.59. Zoom Communications has a 1-year low of $69.15 and a 1-year high of $111.56. The firm has a market cap of $28.51 billion, a PE ratio of 15.60, a price-to-earnings-growth ratio of 5.69 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period last year, the company posted $1.43 EPS. The business's quarterly revenue was up 5.5% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, analysts forecast that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the transaction, the insider owned 141,971 shares in the company, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares of the company's stock, valued at $173,312.36. This trade represents a 86.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 144,329 shares of company stock worth $12,364,989. 11.51% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Kestra Advisory Services LLC boosted its stake in shares of Zoom Communications by 2.0% in the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company's stock worth $512,000 after buying an additional 116 shares during the last quarter. 3Chopt Investment Partners LLC boosted its stake in shares of Zoom Communications by 1.6% in the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company's stock worth $592,000 after buying an additional 119 shares during the last quarter. Rexford Capital Inc. boosted its stake in shares of Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after buying an additional 122 shares during the last quarter. New York State Teachers Retirement System boosted its stake in shares of Zoom Communications by 0.5% in the 4th quarter. New York State Teachers Retirement System now owns 24,263 shares of the company's stock worth $2,094,000 after buying an additional 123 shares during the last quarter. Finally, Root Financial Partners LLC boosted its stake in shares of Zoom Communications by 33.5% in the 4th quarter. Root Financial Partners LLC now owns 542 shares of the company's stock worth $47,000 after buying an additional 136 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: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...

About Zoom Communications

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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