KeyCorp Lowers Zoom Communications (NASDAQ:ZM) Price Target to $69.00

Key Points

• KeyCorp has lowered its price target for Zoom Communications from $73.00 to $69.00, indicating a potential downside of 5.70% from the stock's previous close.
• Other research firms have varied opinions on ZM, with target prices ranging from $85.00 to $97.00 and a consensus rating of "Hold" with an average target of $88.13.
• Insider trading activity includes significant sales by Director Jonathan Chadwick and CEO Eric S. Yuan, indicating a notable reduction in their ownership stakes in the company.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target decreased by equities researchers at KeyCorp from $73.00 to $69.00 in a report released on Friday,Benzinga reports. The firm currently has an "underweight" rating on the stock. KeyCorp's target price suggests a potential downside of 5.70% from the stock's previous close.

Several other research firms have also commented on ZM. Piper Sandler raised their target price on shares of Zoom Communications from $77.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, May 22nd. Wall Street Zen lowered shares of Zoom Communications from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 26th. Morgan Stanley boosted their price objective on shares of Zoom Communications from $79.00 to $85.00 and gave the company an "equal weight" rating in a research report on Thursday, May 22nd. Benchmark restated a "buy" rating and set a $97.00 target price on shares of Zoom Communications in a research note on Tuesday, May 20th. Finally, Citigroup reduced their target price on Zoom Communications from $85.00 to $84.00 and set a "neutral" rating on the stock in a report on Thursday, May 15th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $88.13.

Zoom Communications Trading Up 1.4%

NASDAQ ZM opened at $73.17 on Friday. The company has a market cap of $22.14 billion, a price-to-earnings ratio of 21.97, a PEG ratio of 18.89 and a beta of 0.68. The company has a 50 day moving average of $74.96 and a 200-day moving average of $76.73. Zoom Communications has a 1-year low of $60.71 and a 1-year high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.13. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion. Zoom Communications had a return on equity of 11.08% and a net margin of 22.31%.Zoom Communications's quarterly revenue was up 2.9% on a year-over-year basis. During the same period in the prior year, the firm posted $1.35 EPS. On average, equities research analysts forecast that Zoom Communications will post 2.93 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Jonathan Chadwick sold 25,000 shares of Zoom Communications stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $74.86, for a total transaction of $1,871,500.00. Following the sale, the director directly owned 5,875 shares of the company's stock, valued at approximately $439,802.50. This trade represents a 80.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Eric S. Yuan sold 33,691 shares of the business's stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $74.79, for a total value of $2,519,749.89. The disclosure for this sale can be found here. Insiders sold 87,542 shares of company stock worth $6,609,623 in the last ninety days. Insiders own 11.51% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

Institutional investors have recently added to or reduced their stakes in the business. Principal Financial Group Inc. grew its stake in shares of Zoom Communications by 18.5% in the first quarter. Principal Financial Group Inc. now owns 175,918 shares of the company's stock worth $12,977,000 after purchasing an additional 27,430 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew its position in shares of Zoom Communications by 15.5% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 11,928 shares of the company's stock valued at $880,000 after buying an additional 1,601 shares during the last quarter. Yousif Capital Management LLC increased its stake in shares of Zoom Communications by 31.9% in the first quarter. Yousif Capital Management LLC now owns 4,453 shares of the company's stock valued at $328,000 after buying an additional 1,076 shares during the period. Spire Wealth Management raised its position in shares of Zoom Communications by 990.6% during the first quarter. Spire Wealth Management now owns 1,396 shares of the company's stock worth $103,000 after acquiring an additional 1,268 shares during the last quarter. Finally, New York State Teachers Retirement System raised its position in shares of Zoom Communications by 0.7% during the first quarter. New York State Teachers Retirement System now owns 24,298 shares of the company's stock worth $1,792,000 after acquiring an additional 171 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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