Rosenblatt Securities Reiterates "Buy" Rating for Zoom Communications (NASDAQ:ZM)

Key Points

• Rosenblatt Securities reiterated a “Buy” rating on Zoom Communications and set a $130 price target, implying approximately 22.6% upside from the reported $106 share price.
• Analyst sentiment remains positive overall: Zoom has a consensus “Moderate Buy” rating from 28 analysts, with 16 Buys and 12 Holds, and an average price target of $111.64.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS versus $1.42 expected and $1.24 billion in revenue versus $1.22 billion forecast; revenue grew 5.5% year over year.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Rosenblatt Securities in a research note issued to investors on Friday,Benzinga reports. They currently have a $130.00 price target on the stock. Rosenblatt Securities' price target would indicate a potential upside of 22.64% from the company's current price.

Several other analysts have also recently issued reports on ZM. Mizuho increased their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday, May 22nd. HSBC boosted their price target on shares of Zoom Communications from $107.00 to $133.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Cantor Fitzgerald increased their price objective on Zoom Communications from $87.00 to $104.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Citigroup lifted their price objective on Zoom Communications from $122.00 to $126.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Finally, Piper Sandler boosted their target price on Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a research report on Friday, May 22nd. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $111.64.

Zoom Communications Price Performance

Shares of ZM traded down $0.30 during midday trading on Friday, hitting $106.00. 218,421 shares of the company traded hands, compared to its average volume of 4,096,663. Zoom Communications has a one year low of $70.70 and a one year high of $114.74. The firm has a market cap of $31.08 billion, a P/E ratio of 15.57, a PEG ratio of 4.26 and a beta of 1.00. The stock has a 50-day moving average of $93.34 and a 200-day moving average of $91.01.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.13. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. Zoom Communications's revenue was up 5.5% compared to the same quarter last year. During the same period last year, the business earned $1.43 earnings per share. Sell-side analysts forecast that Zoom Communications will post 4.21 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares of the company's stock, valued at $3,219,041.60. This represents a 19.32% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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, CEO Eric S. Yuan sold 12,100 shares of the firm's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the sale, the chief executive officer owned 22,998 shares in the company, valued at approximately $2,303,709.66. This trade represents a 34.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 56,155 shares of company stock worth $5,654,761 in the last 90 days. 8.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Advocate Investing Services LLC bought a new stake in Zoom Communications during the fourth quarter worth about $26,000. Strive Financial Group LLC purchased a new position in shares of Zoom Communications during the 4th quarter valued at about $27,000. Thurston Springer Miller Herd & Titak Inc. lifted its position in Zoom Communications by 133.3% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock worth $30,000 after buying an additional 200 shares during the last quarter. Rexford Capital Inc. lifted its position in Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after buying an additional 122 shares during the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its stake in Zoom Communications by 83.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock worth $38,000 after buying an additional 200 shares in the last quarter. Institutional investors own 66.54% of the company's stock.

About Zoom Communications

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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