Zoom Communications, Inc. (NASDAQ:ZM) Stock Has Consensus Target Price of $113.62 According to Analysts

Key Points

• Analysts give Zoom a “Moderate Buy” consensus, with 14 buy ratings and 11 hold ratings. The average 12-month price target is $113.62, above the reported share price of $92.88.
• Zoom’s latest quarterly results exceeded expectations, with earnings per share of $1.55 versus the $1.48 consensus and revenue of $1.28 billion. Revenue increased 4.9% year over year.
• Institutional investors own 66.54% of Zoom’s stock, while insiders sold 53,471 shares worth approximately $5.14 million over the past three months, primarily through pre-arranged trading plans.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) has been given a consensus rating of "Moderate Buy" by the twenty-five research firms that are covering the company, Marketbeat Ratings reports. Eleven equities research analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $113.62.

A number of research firms have recently commented on ZM. Sanford C. Bernstein reissued a "market perform" rating and set a $108.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Bank of America started coverage on shares of Zoom Communications in a research note on Wednesday, August 19th. They set a "buy" rating and a $130.00 price target on the stock. Rosenblatt Securities reiterated a "buy" rating and issued a $130.00 price objective on shares of Zoom Communications in a report on Friday, August 21st. UBS Group boosted their price objective on shares of Zoom Communications from $105.00 to $115.00 and gave the stock a "neutral" rating in a report on Thursday, August 20th. Finally, BTIG Research reissued a "buy" rating and issued a $125.00 price objective on shares of Zoom Communications in a research report on Monday, August 24th.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $92.88 on Friday. The business's 50-day simple moving average is $97.49 and its 200 day simple moving average is $93.21. The company has a market cap of $27.10 billion, a P/E ratio of 8.60, a PEG ratio of 4.33 and a beta of 1.03. Zoom Communications has a one year low of $70.70 and a one year high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results 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. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The firm had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter in the prior year, the business earned $1.53 EPS. Zoom Communications's quarterly revenue 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. Analysts predict that Zoom Communications will post 4.27 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Velchamy Sankarlingam sold 2,590 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $95.81, for a total value of $248,147.90. Following the transaction, the insider owned 149,265 shares in the company, valued at approximately $14,301,079.65. The trade was a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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, Director Santiago Subotovsky sold 2,637 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $96.63, for a total transaction of $254,813.31. Following the transaction, the director owned 124,423 shares in the company, valued at $12,022,994.49. This trade represents a 2.08% 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 sold a total of 53,471 shares of company stock valued at $5,144,150 in the last three months. 8.83% of the stock is owned by insiders.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors have recently modified their holdings of the stock. QRG Capital Management Inc. raised its stake in Zoom Communications by 13.5% during the second quarter. QRG Capital Management Inc. now owns 45,461 shares of the company's stock worth $3,924,000 after acquiring an additional 5,401 shares during the period. Envestnet Portfolio Solutions Inc. boosted its stake in Zoom Communications by 10.9% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 2,808 shares of the company's stock valued at $242,000 after acquiring an additional 277 shares during the period. Sequoia Financial Advisors LLC boosted its stake in Zoom Communications by 39.4% in the second quarter. Sequoia Financial Advisors LLC now owns 14,246 shares of the company's stock valued at $1,230,000 after acquiring an additional 4,026 shares during the period. Tidal Investments LLC boosted its stake in Zoom Communications by 251.2% in the second quarter. Tidal Investments LLC now owns 123,450 shares of the company's stock valued at $10,655,000 after acquiring an additional 88,303 shares during the period. Finally, BlueCrest Capital Management Ltd bought a new position in shares of Zoom Communications during the second quarter valued at approximately $43,925,000. Institutional investors and hedge funds own 66.54% of the company's stock.

About Zoom Communications

Zoom Communications, Inc NASDAQ: ZM, formerly known as Zoom Video Communications, is a cloud-based communications and collaboration technology company. Its platform enables organizations and individuals to connect through video meetings, voice communications, messaging, webinars and other digital collaboration tools.

The company's Zoom Workplace platform includes products such as Zoom Meetings, Zoom Phone, Team Chat, Whiteboard and Zoom Rooms. Zoom also provides Zoom Contact Center, Zoom Events and other tools designed to support customer engagement, employee collaboration and hybrid work.

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