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

Key Points

• Zoom Communications has a consensus analyst rating of “Moderate Buy” from 26 covering firms, with 14 buy ratings and 12 holds. The average 12-month price target is $108.15.
• The company recently beat quarterly expectations, reporting $1.55 EPS versus $1.42 expected and revenue of $1.24 billion versus $1.22 billion expected. Revenue rose 5.5% year over year.
• Zoom insiders have been selling shares, including CFO Michelle Chang and CEO Eric S. Yuan, with insiders selling 144,329 shares worth about $12.4 million over the last quarter. Institutional investors remain heavily involved, owning 66.54% of the stock.

Shares of Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-six research firms that are currently covering the firm, Marketbeat.com reports. Twelve research analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $108.15.

Several research firms have recently weighed in on ZM. Morgan Stanley lifted their target price on shares of Zoom Communications from $92.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research report on Wednesday, May 20th. BTIG Research lifted their target price on shares of Zoom Communications from $100.00 to $125.00 and gave the company a "buy" rating in a research note on Friday, May 22nd. Cantor Fitzgerald lifted their target price on shares of Zoom Communications from $87.00 to $104.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Finally, Wells Fargo & Company boosted their price objective on shares of Zoom Communications from $90.00 to $105.00 and gave the stock an "equal weight" rating in a research note on Friday, May 22nd.

Insider Activity

In related news, CFO Michelle Chang sold 8,489 shares of the company's stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at $2,477,576.44. This represents a 21.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 69,923 shares of the business's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the sale, the chief executive officer directly owned 36,796 shares in the company, valued at $2,988,571.12. This trade represents a 65.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 144,329 shares of company stock worth $12,364,989. Corporate insiders own 11.51% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

Several large investors have recently made changes to their positions in the company. Kestra Advisory Services LLC grew its holdings in shares of Zoom Communications by 2.0% in the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company's stock worth $512,000 after purchasing an additional 116 shares during the last quarter. 3Chopt Investment Partners LLC lifted its position in Zoom Communications by 1.6% during the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company's stock worth $592,000 after buying an additional 119 shares in the last quarter. Rexford Capital Inc. lifted its position 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 period. New York State Teachers Retirement System lifted its position in Zoom Communications by 0.5% during the 4th quarter. New York State Teachers Retirement System now owns 24,263 shares of the company's stock valued at $2,094,000 after purchasing an additional 123 shares during the period. Finally, Root Financial Partners LLC lifted its position in Zoom Communications by 33.5% during the 4th quarter. Root Financial Partners LLC now owns 542 shares of the company's stock valued at $47,000 after purchasing an additional 136 shares during the period. Institutional investors own 66.54% of the company's stock.

Zoom Communications Price Performance

Shares of ZM opened at $101.59 on Friday. The firm's 50 day moving average is $91.36 and its 200-day moving average is $87.35. The stock has a market capitalization of $29.94 billion, a P/E ratio of 14.92, a P/E/G ratio of 5.81 and a beta of 1.00. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $113.73.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.42 by $0.13. The company had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business's revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.43 EPS. 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 forecast that Zoom Communications will post 3.96 EPS for the current fiscal year.

Zoom Communications Company Profile

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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