Needham & Company LLC Reiterates "Buy" Rating for Zoom Communications (NASDAQ:ZM)

Key Points

• Needham & Company LLC has reiterated a "Buy" rating for Zoom Communications, maintaining a price target of $100.00, suggesting a potential upside of 15.87% from its current price.
• Multiple researchers have different outlooks on Zoom, with Zacks Research downgrading it to a "hold" and JPMorgan raising its target price to $85.00, resulting in an average consensus rating of "Hold" with a target price of $90.30.
• In recent insider transactions, CEO Eric S. Yuan sold 33,691 shares at $74.79, indicating significant insider selling activity as a total of 90,400 shares worth approximately $6.87 million have been sold in the last 90 days.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at Needham & Company LLC in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $100.00 price target on the stock. Needham & Company LLC's target price suggests a potential upside of 15.87% from the company's current price.

Several other research analysts have also recently issued reports on the stock. Zacks Research cut shares of Zoom Communications from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 20th. JPMorgan Chase & Co. increased their target price on shares of Zoom Communications from $80.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, May 22nd. Wedbush reaffirmed an "outperform" rating and issued a $95.00 target price on shares of Zoom Communications in a report on Friday, August 22nd. Piper Sandler reaffirmed a "neutral" rating and issued a $85.00 target price on shares of Zoom Communications in a report on Friday, August 22nd. Finally, Bank of America increased their target price on shares of Zoom Communications from $79.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $90.30.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $86.30 on Thursday. The company has a 50-day simple moving average of $77.08 and a 200-day simple moving average of $76.82. Zoom Communications has a one year low of $64.41 and a one year high of $92.80. The stock has a market capitalization of $26.11 billion, a price-to-earnings ratio of 22.77, a PEG ratio of 11.87 and a beta of 0.57.

Insiders Place Their Bets

In other news, CEO Eric S. Yuan sold 33,691 shares of the firm's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $74.79, for a total value of $2,519,749.89. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Aparna Bawa sold 10,528 shares of the firm's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $74.78, for a total transaction of $787,283.84. Following the completion of the transaction, the chief operating officer directly owned 1,978 shares in the company, valued at approximately $147,914.84. This represents a 84.18% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 90,400 shares of company stock worth $6,871,114. 11.51% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ZM. Wayfinding Financial LLC acquired a new position in Zoom Communications during the 1st quarter worth $25,000. SouthState Corp acquired a new position in Zoom Communications during the 1st quarter valued at about $25,000. Elevation Point Wealth Partners LLC acquired a new position in Zoom Communications during the 2nd quarter valued at about $27,000. MassMutual Private Wealth & Trust FSB boosted its stake in Zoom Communications by 177.0% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 385 shares of the company's stock valued at $28,000 after purchasing an additional 246 shares during the period. Finally, REAP Financial Group LLC boosted its stake in Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company's stock valued at $28,000 after purchasing an additional 229 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

About Zoom Communications

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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