Zoom Communications, Inc. (NASDAQ:ZM) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Zoom, with 16 buy ratings and 12 holds among 28 analysts. The average 12-month price target is $112.55, above the reported share price of $101.33.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS versus the $1.48 consensus estimate and $1.28 billion in revenue versus $1.27 billion expected. Revenue increased 4.9% year over year.
• Insiders sold 50,881 shares worth approximately $4.88 million over the past quarter, while institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-eight analysts that are presently covering the company, MarketBeat Ratings reports. Twelve equities research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $112.5455.

Several equities research analysts recently issued reports on ZM shares. 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. HSBC upped their target price on shares of Zoom Communications from $107.00 to $133.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 27th. Benchmark lifted their price target on shares of Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research report on Thursday, May 21st. Finally, Citizens Jmp reissued a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, August 26th.

Zoom Communications Price Performance

Shares of ZM opened at $101.33 on Tuesday. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The company has a market capitalization of $29.57 billion, a price-to-earnings ratio of 9.38, a PEG ratio of 4.69 and a beta of 1.04. The stock's 50-day moving average price is $96.18 and its 200-day moving average price is $91.66.

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 return on equity of 10.86% and a net margin of 65.19%.The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same period last year, the business earned $1.53 earnings per share. Zoom Communications's quarterly revenue was up 4.9% on a year-over-year basis. 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. As a group, equities analysts anticipate that Zoom Communications will post 4.26 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other Zoom Communications news, CEO Eric Yuan sold 12,100 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $95.34, for a total value of $1,153,614.00. Following the sale, the chief executive officer owned 22,998 shares of the company's stock, valued at $2,192,629.32. The trade was a 34.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total value of $801,621.63. Following the transaction, the director owned 127,060 shares in the company, valued at $12,874,989.80. This trade represents a 5.86% decrease in their ownership of the stock. 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. Insiders have sold a total of 50,881 shares of company stock worth $4,878,914 over the last quarter. Company insiders own 8.83% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently bought and sold shares of ZM. Advocate Investing Services LLC purchased a new stake in shares of Zoom Communications during the fourth quarter worth $26,000. Strive Financial Group LLC purchased a new position in Zoom Communications in the fourth quarter valued at $27,000. Thurston Springer Miller Herd & Titak Inc. grew its stake in Zoom Communications by 133.3% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock worth $30,000 after purchasing an additional 200 shares in the last quarter. Rexford Capital Inc. grew its stake in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after purchasing an additional 122 shares in the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA increased its holdings in Zoom Communications by 83.3% during the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after purchasing an additional 200 shares during the period. Institutional investors and hedge funds own 66.54% of the company's stock.

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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