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

Key Points

• Consensus "Hold": Zoom has a consensus recommendation of "Hold" from 28 analysts (14 buy, 13 hold, 1 sell) with an average 1‑year price target of $95.32.
• Insider selling: CEO Eric Yuan sold 69,923 shares (a reported 65.5% reduction in his stake) and Director Santiago Subotovsky sold 5,274 shares; insiders disposed of 134,704 shares (~$11.3M) over the past 90 days and now own 10.78% of the company.
• Earnings & guidance: Zoom reported Q results of $1.44 EPS (missing by $0.04) with $1.25B revenue, and issued FY2027 guidance of $5.77–$5.81 EPS.

Shares of Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) have earned a consensus recommendation of "Hold" from the twenty-eight ratings firms that are presently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, thirteen have given a hold recommendation and fourteen have given a buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $95.3182.

Several equities analysts have commented on the company. BTIG Research dropped their target price on Zoom Communications from $105.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Citizens Jmp reiterated a "market perform" rating on shares of Zoom Communications in a research report on Tuesday, February 24th. Needham & Company LLC reiterated a "buy" rating and issued a $100.00 target price on shares of Zoom Communications in a research report on Friday, March 13th. Rosenblatt Securities restated a "buy" rating and set a $115.00 price objective on shares of Zoom Communications in a research report on Thursday, February 26th. Finally, Wall Street Zen downgraded Zoom Communications from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th.

Insider Activity at Zoom Communications

In other news, Director Santiago Subotovsky sold 5,274 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the transaction, the director directly owned 142,882 shares in the company, valued at $15,228,363.56. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the firm's stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer owned 36,796 shares of the company's stock, valued at $2,988,571.12. This trade represents a 65.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 134,704 shares of company stock valued at $11,298,844 over the last ninety days. Insiders own 10.78% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds have recently made changes to their positions in ZM. Advocate Investing Services LLC acquired a new stake in Zoom Communications during the fourth quarter worth approximately $26,000. Strive Financial Group LLC acquired a new stake in Zoom Communications during the fourth quarter worth approximately $27,000. Toth Financial Advisory Corp acquired a new stake in Zoom Communications during the fourth quarter worth approximately $28,000. Rexford Capital Inc. grew its stake in Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after purchasing an additional 122 shares during the period. Finally, Root Financial Partners LLC acquired a new stake in Zoom Communications during the third quarter worth approximately $33,000. 66.54% of the stock is currently owned by institutional investors.

Zoom Communications Trading Up 2.3%

Zoom Communications stock opened at $109.10 on Wednesday. The company has a market capitalization of $32.15 billion, a PE ratio of 17.60, a P/E/G ratio of 6.10 and a beta of 1.00. Zoom Communications has a 12 month low of $69.15 and a 12 month high of $109.50. The stock has a 50-day moving average price of $82.44 and a two-hundred day moving average price of $84.99.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). The firm had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. Zoom Communications's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.41 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, analysts predict that Zoom Communications will post 3.94 earnings per share for the current fiscal year.

Key Headlines Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom named Russell Dicker as Chief Product Officer, strengthening product leadership and signaling execution focus on roadmap and AI-driven offerings. Zoom Appoints Russell Dicker as Chief Product Officer
• Positive Sentiment: Technical momentum: ZM cleared a cup‑with‑handle breakout and IBD upgraded its Relative Strength score into the 80s, which can attract momentum and retail/technical buyers. Zoom Stock Soars After Cup With Handle Breakout; Rating Upgraded
• Positive Sentiment: Product/market positioning: Zoom launched the “Solopreneur 50” program and released research on AI‑powered solo businesses — a signal management is targeting new addressable markets (AI-enabled SMB/creator workflows). This supports longer-term revenue diversification beyond meetings. Zoom Solopreneur 50
• Positive Sentiment: Investor research suggests Zoom is transitioning from SMB to larger enterprise deals, which could support higher-quality revenue and margin stability if execution continues. Zoom: The Transition To Large Enterprise
• Neutral Sentiment: Relative valuation and peer comparisons: Several outlets published side‑by‑side analyses (Five9 vs Zoom) for value investors — useful for allocation decisions but not an immediate catalyst. FIVN or ZM: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Analyst/idea lists: Coverage noting Zoom as a beaten‑down tech name that could rebound may support medium‑term interest but represents opinion rather than fresh fundamental proof. 3 Beaten-Down Tech Stocks That Could Soar
• Negative Sentiment: Sector/headwind risk: Prominent market voices and commentary note a rotation out of high‑beta cloud/software names amid rate and geopolitical uncertainty — a persistent headwind that can cap multiple expansion for ZM. Josh Brown now has just one software name in his 'best stocks' list

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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