Zoom Communications, Inc. (NASDAQ:ZM) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Zoom Communications has a consensus analyst rating of “Moderate Buy” from 27 brokerages, with 15 buy ratings and 12 hold ratings. The average 12-month price target is about $109.33.
• The company’s latest quarterly results beat expectations, with EPS of $1.55 versus $1.42 expected and revenue of $1.24 billion versus $1.22 billion expected. Revenue also rose 5.5% year over year.
• Insider selling has been notable, including sales by CEO Eric S. Yuan and CFO Michelle Chang. Over the last three months, insiders sold 48,517 shares worth about $5.06 million.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-seven brokerages that are currently covering the stock, MarketBeat Ratings reports. Twelve analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $109.3333.

A number of research analysts recently weighed in on the stock. Mizuho raised their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a research report on Friday, May 22nd. Jefferies Financial Group increased their price objective on shares of Zoom Communications from $105.00 to $118.00 and gave the stock a "buy" rating in a research note on Friday, May 22nd. Rosenblatt Securities lifted their target price on Zoom Communications from $115.00 to $130.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Royal Bank Of Canada reissued an "outperform" rating and set a $130.00 price target on shares of Zoom Communications in a research report on Tuesday, June 30th. Finally, Robert W. Baird boosted their price target on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th.

Zoom Communications Stock Performance

Shares of Zoom Communications stock opened at $91.13 on Monday. The firm has a market cap of $26.72 billion, a PE ratio of 13.38, a P/E/G ratio of 4.86 and a beta of 1.01. The business's 50 day simple moving average is $94.75 and its 200 day simple moving average is $88.93. Zoom Communications has a 52-week low of $69.15 and a 52-week high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The company had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same period last year, the business earned $1.43 EPS. The business's quarterly revenue was up 5.5% on a year-over-year basis. 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 4.23 EPS for the current year.

Insider Activity at Zoom Communications

In related news, CEO Eric S. Yuan sold 12,100 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $106.60, for a total value of $1,289,860.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares in the company, valued at $3,219,041.60. This trade represents a 19.32% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 48,517 shares of company stock valued at $5,061,783. 8.83% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently bought and sold shares of ZM. Advocate Investing Services LLC bought a new position in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Strive Financial Group LLC acquired a new position in shares of Zoom Communications during the 4th quarter worth approximately $27,000. Toth Financial Advisory Corp bought a new stake in Zoom Communications in the 4th quarter valued at $28,000. Thurston Springer Miller Herd & Titak Inc. raised its stake 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 valued at $30,000 after acquiring an additional 200 shares during the period. Finally, Rexford Capital Inc. lifted its holdings in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after purchasing an additional 122 shares during the last quarter. Institutional investors and hedge funds 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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