Zoom Communications, Inc. (NASDAQ:ZM) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: 15 of 27 analysts rate Zoom a “buy” and 12 recommend holding the stock, with an average 12-month price target of $109.33.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS versus a $1.42 consensus estimate and $1.24 billion in revenue, up 5.5% year over year.
• Insiders sold shares while institutions remained active: insiders sold 48,511 shares worth nearly $5.0 million over 90 days, while institutional investors own 66.54% of the company.

Shares of Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-seven research firms that are presently covering the firm, Marketbeat Ratings reports. Twelve investment analysts have rated the stock with a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $109.3333.

A number of research analysts have recently commented on the stock. Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, July 21st. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Piper Sandler boosted their price objective on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a report on Friday, May 22nd. Needham & Company LLC reiterated a "buy" rating and issued a $130.00 price objective on shares of Zoom Communications in a report on Thursday, July 2nd. Finally, Rosenblatt Securities restated a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a research note on Thursday, July 23rd.

Insider Activity at Zoom Communications

In other Zoom Communications news, CEO Eric S. Yuan sold 12,100 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the completion of the sale, the chief executive officer owned 22,998 shares in the company, valued at $2,303,709.66. This trade represents a 34.47% decrease in their position. The sale was disclosed in a document filed 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, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer owned 35,452 shares in the company, valued at $3,219,041.60. This represents a 19.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 90 days, insiders sold 48,511 shares of company stock valued at $4,951,666. Insiders own 8.83% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Allianz Asset Management GmbH raised its stake in shares of Zoom Communications by 15.6% in the 4th quarter. Allianz Asset Management GmbH now owns 2,112,815 shares of the company's stock worth $182,315,000 after buying an additional 285,626 shares in the last quarter. Hsbc Holdings PLC boosted its stake in Zoom Communications by 43.6% during the fourth quarter. Hsbc Holdings PLC now owns 422,470 shares of the company's stock valued at $36,460,000 after buying an additional 128,174 shares in the last quarter. Sherry Group Inc. bought a new position in Zoom Communications during the fourth quarter valued at about $894,000. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new position in Zoom Communications during the fourth quarter worth about $13,312,000. Finally, Geode Capital Management LLC grew its holdings in Zoom Communications by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company's stock worth $445,254,000 after acquiring an additional 152,862 shares during the period. 66.54% of the stock is currently owned by institutional investors.

Zoom Communications Stock Performance

ZM stock opened at $109.84 on Friday. The firm has a market cap of $32.21 billion, a P/E ratio of 16.13, a price-to-earnings-growth ratio of 5.64 and a beta of 1.00. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The stock has a 50-day simple moving average of $92.46 and a 200-day simple moving average of $90.60.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping the consensus estimate of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The firm had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the previous year, the company posted $1.43 EPS. Zoom Communications's revenue for the quarter 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. On average, equities research analysts predict that Zoom Communications will post 4.21 EPS for the current year.

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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