Zoom Communications, Inc. (NASDAQ:ZM) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Brokerages have assigned a consensus rating of "Hold" to Zoom Communications, Inc. (NASDAQ: ZM), with varying ratings from 29 analysts including 1 sell, 15 hold, 11 buy, and 2 strong buy ratings.
• The average 12-month target price for Zoom stock is approximately $91.74, with recent ratings targeting prices ranging from $85.00 to $110.00.
• Zoom reported a Q2 EPS of $0.99, which was below analysts' expectations, but showed a revenue increase to $1.22 billion, surpassing forecasts of $1.20 billion.

Shares of Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) have been given a consensus rating of "Hold" by the twenty-nine brokerages that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $91.7391.

A number of brokerages have recently commented on ZM. Needham & Company LLC reiterated a "buy" rating and issued a $100.00 target price on shares of Zoom Communications in a report on Thursday, September 18th. William Blair reaffirmed an "outperform" rating on shares of Zoom Communications in a research note on Tuesday, September 30th. Wells Fargo & Company assumed coverage on Zoom Communications in a research note on Tuesday, September 30th. They set an "equal weight" rating and a $90.00 target price on the stock. Piper Sandler reaffirmed a "neutral" rating and set a $85.00 target price on shares of Zoom Communications in a research note on Friday, August 22nd. Finally, Benchmark upped their target price on Zoom Communications from $102.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, September 18th.

Zoom Communications Stock Performance

Shares of Zoom Communications stock opened at $80.01 on Friday. The stock has a market cap of $24.21 billion, a price-to-earnings ratio of 21.11, a price-to-earnings-growth ratio of 10.89 and a beta of 0.78. The stock has a 50 day moving average price of $80.54 and a 200-day moving average price of $77.81. Zoom Communications has a one year low of $64.41 and a one year high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its earnings results on Thursday, August 21st. The company reported $0.99 EPS for the quarter, missing analysts' consensus estimates of $1.38 by ($0.39). The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.20 billion. Zoom Communications had a return on equity of 11.91% and a net margin of 24.99%.Zoom Communications's revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.39 EPS. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. Sell-side analysts predict that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Velchamy Sankarlingam sold 7,660 shares of the stock in a transaction that occurred on Friday, October 10th. The stock was sold at an average price of $82.00, for a total value of $628,120.00. Following the transaction, the insider owned 132,795 shares of the company's stock, valued at $10,889,190. This represents a 5.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $80.78, for a total value of $199,930.50. Following the completion of the transaction, the director directly owned 152,644 shares in the company, valued at approximately $12,330,582.32. This trade represents a 1.60% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 88,328 shares of company stock valued at $7,170,074. 11.51% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ZM. Norges Bank bought a new position in Zoom Communications in the second quarter worth approximately $539,998,000. Acadian Asset Management LLC lifted its holdings in Zoom Communications by 41.1% during the second quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company's stock worth $293,909,000 after buying an additional 1,097,333 shares during the period. Pacer Advisors Inc. lifted its holdings in Zoom Communications by 54.4% during the third quarter. Pacer Advisors Inc. now owns 2,695,193 shares of the company's stock worth $222,353,000 after buying an additional 949,829 shares during the period. Robeco Institutional Asset Management B.V. lifted its holdings in Zoom Communications by 63.5% during the second quarter. Robeco Institutional Asset Management B.V. now owns 2,137,093 shares of the company's stock worth $166,651,000 after buying an additional 830,393 shares during the period. Finally, Wedge Capital Management L L P NC purchased a new stake in Zoom Communications during the third quarter worth $63,357,000. Institutional investors own 66.54% of the company's stock.

About Zoom Communications

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.