Zoom Communications (NASDAQ:ZM) Stock Price Breaks Above Fifty Day Moving Average After Insider Selling

Key Points

• Zoom shares rose 2.4% and climbed above their 50-day moving average of $96.38, trading as high as $98.36.
• Analyst sentiment is moderately bullish: the stock has a consensus “Moderate Buy” rating and an average price target of $114.48, with recent targets reaching $130.
• Zoom’s latest quarterly results exceeded expectations, with adjusted EPS of $1.55 versus $1.48 expected and revenue of $1.28 billion, up 4.9% year over year; institutional investors own 66.54% of the stock.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report)'s stock price passed above its 50 day moving average during trading on Monday after an insider bought additional shares in the company. The stock has a 50 day moving average of $96.38 and traded as high as $98.36. Zoom Communications shares last traded at $98.04, with a volume of 2,179,906 shares.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on ZM shares. KeyCorp reiterated a "sector weight" rating on shares of Zoom Communications in a report on Wednesday, August 26th. Morgan Stanley increased their target price on Zoom Communications from $105.00 to $107.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 26th. Oppenheimer raised Zoom Communications from a "market perform" rating to an "outperform" rating and set a $130.00 target price for the company in a research note on Wednesday, October 21st. Rosenblatt Securities restated a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a report on Wednesday, October 21st. Finally, Yorkville Ives assumed coverage on shares of Zoom Communications in a research note on Tuesday, October 6th. They issued an "outperform" rating and a $120.00 price target on the stock. Sixteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $114.48.

Zoom Communications Stock Up 2.4%

The company's fifty day moving average is $96.38 and its 200 day moving average is $91.61. The firm has a market cap of $28.61 billion, a price-to-earnings ratio of 9.08, a PEG ratio of 4.25 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the business earned $1.53 EPS. The company's 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. On average, equities research analysts forecast that Zoom Communications, Inc. will post 4.27 EPS for the current fiscal year.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Oppenheimer & Co. Inc. increased its position in shares of Zoom Communications by 39.4% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 9,566 shares of the company's stock worth $868,000 after purchasing an additional 2,703 shares during the last quarter. Signaturefd LLC boosted its holdings in shares of Zoom Communications by 16.1% in the 3rd quarter. Signaturefd LLC now owns 5,595 shares of the company's stock valued at $508,000 after buying an additional 775 shares during the last quarter. Capital Investment Advisors LLC boosted its holdings in shares of Zoom Communications by 8.9% in the 3rd quarter. Capital Investment Advisors LLC now owns 3,022 shares of the company's stock valued at $274,000 after buying an additional 248 shares during the last quarter. XXI Wealth LLC grew its stake in shares of Zoom Communications by 57.3% in the third quarter. XXI Wealth LLC now owns 4,180 shares of the company's stock valued at $379,000 after buying an additional 1,523 shares in the last quarter. Finally, Yousif Capital Management LLC grew its stake in shares of Zoom Communications by 8.2% in the third quarter. Yousif Capital Management LLC now owns 5,080 shares of the company's stock valued at $461,000 after buying an additional 384 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Zoom Communications Company Profile

Zoom Communications, Inc NASDAQ: ZM is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company's product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.