Royal Bank Of Canada Raises Zoom Communications (NASDAQ:ZM) Price Target to $100.00

Key Points

• Royal Bank of Canada raised its price target for Zoom Communications from $95.00 to $100.00, indicating a potential upside of 28.41% based on the company's previous close.
• Overall, analyst ratings for Zoom Communications are mixed, with one Strong Buy, nine Buy, 16 Hold, and one Sell rating.
• Zoom Communications reported earnings of $1.43 per share for its last quarter, exceeding analyst estimates of $1.30, with a quarterly revenue increase of 2.9% year-over-year.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target upped by equities researchers at Royal Bank Of Canada from $95.00 to $100.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price indicates a potential upside of 28.41% from the company's previous close.

Several other brokerages also recently weighed in on ZM. Wall Street Zen downgraded shares of Zoom Communications from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 26th. Scotiabank upped their target price on shares of Zoom Communications from $75.00 to $85.00 and gave the company a "sector perform" rating in a research note on Friday, May 16th. Rosenblatt Securities increased their price objective on shares of Zoom Communications from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Friday. Piper Sandler increased their price objective on shares of Zoom Communications from $77.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 22nd. Finally, JPMorgan Chase & Co. increased their price objective on shares of Zoom Communications from $80.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $88.13.

Zoom Communications Stock Performance

Zoom Communications stock opened at $77.8780 on Friday. Zoom Communications has a 1 year low of $64.41 and a 1 year high of $92.80. The firm has a 50 day moving average price of $74.96 and a 200 day moving average price of $76.73. The company has a market cap of $23.56 billion, a price-to-earnings ratio of 23.37, a PEG ratio of 18.89 and a beta of 0.68.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.13. Zoom Communications had a net margin of 22.31% and a return on equity of 11.08%. The company had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the prior year, the business earned $1.35 earnings per share. The business's quarterly revenue was up 2.9% compared to the same quarter last year. Sell-side analysts predict that Zoom Communications will post 2.93 EPS for the current year.

Insider Activity

In other Zoom Communications news, Director Jonathan Chadwick sold 25,000 shares of the firm's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $74.86, for a total transaction of $1,871,500.00. Following the transaction, the director owned 5,875 shares of the company's stock, valued at approximately $439,802.50. This trade represents a 80.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Velchamy Sankarlingam sold 7,661 shares of the firm's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $77.50, for a total transaction of $593,727.50. Following the transaction, the insider directly owned 129,377 shares in the company, valued at approximately $10,026,717.50. The trade was a 5.59% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 87,542 shares of company stock worth $6,609,623 in the last 90 days. 11.51% of the stock is currently owned by corporate insiders.

Institutional Trading of Zoom Communications

A number of large investors have recently added to or reduced their stakes in ZM. SouthState Corp purchased a new stake in shares of Zoom Communications in the first quarter worth approximately $25,000. Elevation Point Wealth Partners LLC bought a new position in Zoom Communications during the second quarter valued at approximately $27,000. Wayfinding Financial LLC bought a new position in Zoom Communications during the first quarter valued at approximately $25,000. REAP Financial Group LLC raised its position in Zoom Communications by 181.7% during the second quarter. REAP Financial Group LLC now owns 355 shares of the company's stock valued at $28,000 after acquiring an additional 229 shares in the last quarter. Finally, Raiffeisen Bank International AG acquired a new stake in shares of Zoom Communications in the fourth quarter worth $30,000. 66.54% of the stock is currently owned by institutional investors.

Zoom Communications Company Profile

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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