Zoom Communications (NASDAQ:ZM) Shares Cross Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Zoom shares rose above their 200-day moving average of $92.27, trading as high as $98.22 and last at $98.08.
• Analyst sentiment is moderately bullish: 16 analysts rate the stock Buy and 11 Hold, with a consensus price target of $114.48.
• In its latest reported quarter, Zoom beat earnings and revenue estimates, posting $1.55 EPS and $1.28 billion in revenue; revenue grew 4.9% year over year.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $92.27 and traded as high as $98.22. Zoom Communications shares last traded at $98.08, with a volume of 4,428,492 shares changing hands.

Wall Street Analysts Forecast Growth

ZM has been the subject of several research reports. Weiss Ratings upgraded shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, October 8th. Bank of America assumed coverage on Zoom Communications in a research report on Wednesday, August 19th. They issued a "buy" rating and a $130.00 target price on the stock. UBS Group lowered their target price on Zoom Communications from $115.00 to $112.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 21st. Rosenblatt Securities reissued a "buy" rating and set a $130.00 price target on shares of Zoom Communications in a report on Wednesday, October 21st. Finally, Yorkville Ives began coverage on Zoom Communications in a research note on Tuesday, October 6th. They issued an "outperform" rating and a $120.00 price target for the company. Sixteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $114.48.

Zoom Communications Stock Performance

The stock's fifty day simple moving average is $94.32 and its 200-day simple moving average is $92.27. The stock has a market cap of $28.62 billion, a P/E ratio of 9.08, a P/E/G ratio of 4.14 and a beta of 1.02.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same period last year, the firm earned $1.53 earnings per share. The business's revenue for the quarter 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 research analysts forecast that Zoom Communications, Inc. will post 4.16 earnings per share for the current year.

Insider Activity

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of the firm's stock in a transaction on Monday, October 12th. The stock was sold at an average price of $99.26, for a total transaction of $758,842.70. Following the transaction, the insider owned 151,813 shares in the company, valued at $15,068,958.38. This trade represents a 4.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 3,812 shares of Zoom Communications stock in a transaction on Wednesday, October 21st. The shares were sold at an average price of $100.56, for a total value of $383,334.72. Following the completion of the transaction, the director directly owned 117,974 shares of the company's stock, valued at $11,863,465.44. This represents a 3.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 83,582 shares of company stock worth $8,054,735. 8.83% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Edmond DE Rothschild Holding S.A. lifted its holdings in shares of Zoom Communications by 214.9% during the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 7,481 shares of the company's stock worth $679,000 after acquiring an additional 5,105 shares during the period. Private Wealth Asset Management LLC acquired a new stake in shares of Zoom Communications during the 3rd quarter worth approximately $686,000. Westpac Banking Corp boosted its position in shares of Zoom Communications by 278.6% during the 3rd quarter. Westpac Banking Corp now owns 9,354 shares of the company's stock worth $849,000 after acquiring an additional 6,883 shares in the last quarter. Private Advisor Group LLC increased its stake in Zoom Communications by 23.0% in the third quarter. Private Advisor Group LLC now owns 13,574 shares of the company's stock valued at $1,232,000 after acquiring an additional 2,542 shares during the last quarter. Finally, Focus Advisor Solutions LLC increased its stake in Zoom Communications by 78.7% in the third quarter. Focus Advisor Solutions LLC now owns 31,495 shares of the company's stock valued at $2,859,000 after acquiring an additional 13,866 shares during the last quarter. Institutional investors own 66.54% of the company's stock.

Zoom Communications Company Profile

Zoom Communications provides cloud-based collaboration and communications software for businesses, organizations and individual users. Its products include Zoom Meetings for video conferencing, Zoom Team Chat, Zoom Phone, Zoom Rooms and tools for webinars and online events. The company also offers Zoom Contact Center and other services designed to support customer interactions and workplace collaboration. Founded in 2011 by Eric Yuan, Zoom became widely known for its video-conferencing service. The company, formerly known as Zoom Video Communications, adopted the name Zoom Communications in 2024 as it expanded its offerings beyond video meetings.

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