Piper Sandler Issues Positive Forecast for Zoom Communications (NASDAQ:ZM) Stock Price

Key Points

• Piper Sandler raised its price target on Zoom Communications from $91 to $107, while keeping a neutral rating. The new target implies about 10.6% upside from the current share price.
• Zoom’s latest quarterly results beat expectations, with EPS of $1.55 and revenue of $1.24 billion topping analyst estimates. The company also raised its forward guidance, signaling confidence in continued growth.
• Other analysts have turned more constructive on the stock, including upgrades from KeyCorp and Wolfe Research, and the consensus rating remains Moderate Buy with an average price target of $103.45.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target upped by Piper Sandler from $91.00 to $107.00 in a report released on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Piper Sandler's price target indicates a potential upside of 10.59% from the company's current price.

A number of other research firms also recently issued reports on ZM. KeyCorp raised shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday. Mizuho boosted their price target on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Friday. Sanford C. Bernstein lowered their price objective on Zoom Communications from $90.00 to $88.00 and set a "market perform" rating on the stock in a research note on Thursday, February 26th. Wolfe Research upgraded Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price objective on the stock in a research note on Thursday, February 5th. Finally, Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, May 1st. Fourteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $103.45.

Zoom Communications Stock Performance

Zoom Communications stock opened at $96.75 on Friday. Zoom Communications has a 52-week low of $69.15 and a 52-week high of $111.56. The firm has a 50 day moving average price of $88.14 and a two-hundred day moving average price of $86.59. The firm has a market cap of $28.51 billion, a price-to-earnings ratio of 15.60, a PEG ratio of 5.69 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.14. The firm had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The company's revenue was up 5.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.43 EPS. 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. As a group, equities research analysts predict that Zoom Communications will post 3.94 EPS for the current fiscal year.

Insider Activity

In other news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the sale, the chief financial officer owned 30,467 shares of the company's stock, valued at approximately $2,477,576.44. This represents a 21.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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, insider Velchamy Sankarlingam sold 7,645 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total value of $653,188.80. Following the completion of the sale, the insider directly owned 141,971 shares of the company's stock, valued at $12,130,002.24. The trade was a 5.11% 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 90 days, insiders have sold 144,329 shares of company stock valued at $12,364,989. Corporate insiders own 11.51% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased its holdings in shares of Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock valued at $591,000 after acquiring an additional 1,153 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of Zoom Communications by 59.1% during the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after acquiring an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in shares of Zoom Communications by 82.0% during the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after acquiring an additional 397 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of Zoom Communications during the second quarter valued at $217,000. Finally, Invesco Ltd. increased its holdings in shares of Zoom Communications by 7.0% during the second quarter. Invesco Ltd. now owns 730,207 shares of the company's stock valued at $56,942,000 after acquiring an additional 47,749 shares in the last quarter. Institutional investors own 66.54% of the company's stock.

Zoom Communications News Summary

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 ...

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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