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

Key Points

• Zoom Communications, Inc. has received an average recommendation of "Hold" from 26 brokerages, with one sell, fifteen hold, nine buy, and one strong buy ratings.
• Insider trading has seen significant sales, with executive Velchamy Sankarlingam selling 7,661 shares and director Jonathan Chadwick selling 25,000 shares, indicating a shift in ownership positions.
• Zoom's stock is currently trading at approximately $70.97, down 4.2%, with a market cap of $21.47 billion and pricing expectations among analysts set around $87.00.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) has been assigned an average rating of "Hold" from the twenty-six research firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, fifteen have issued a hold recommendation, nine have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $87.00.

ZM has been the topic of several recent research reports. Citigroup lowered their target price on shares of Zoom Communications from $85.00 to $84.00 and set a "neutral" rating on the stock in a report on Thursday, May 15th. Mizuho lowered their price target on shares of Zoom Communications from $105.00 to $71.00 and set an "outperform" rating for the company in a report on Tuesday, April 15th. JPMorgan Chase & Co. boosted their price objective on shares of Zoom Communications from $80.00 to $85.00 and gave the stock a "neutral" rating in a research note on Thursday, May 22nd. William Blair reiterated an "outperform" rating on shares of Zoom Communications in a report on Thursday, May 22nd. Finally, Wells Fargo & Company lifted their target price on Zoom Communications from $75.00 to $80.00 and gave the stock an "equal weight" rating in a report on Thursday, May 22nd.

Zoom Communications Price Performance

Shares of Zoom Communications stock traded up $1.09 during trading on Monday, hitting $72.06. 1,994,729 shares of the company were exchanged, compared to its average volume of 3,453,192. The firm's fifty day moving average price is $77.15 and its 200 day moving average price is $77.70. The firm has a market capitalization of $21.80 billion, a P/E ratio of 21.64, a price-to-earnings-growth ratio of 11.63 and a beta of 0.68. Zoom Communications has a 1-year low of $55.06 and a 1-year high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.30 by $0.13. The firm had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.17 billion. Zoom Communications had a return on equity of 11.08% and a net margin of 22.31%. The company's revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.35 EPS. As a group, equities research analysts anticipate that Zoom Communications will post 2.93 earnings per share for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, COO Aparna Bawa sold 10,528 shares of the stock in a transaction on Monday, July 14th. The stock was sold at an average price of $74.78, for a total value of $787,283.84. Following the completion of the sale, the chief operating officer owned 1,978 shares in the company, valued at approximately $147,914.84. This represents a 84.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Velchamy Sankarlingam sold 7,661 shares of the company's stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $77.50, for a total value of $593,727.50. Following the completion of the transaction, the insider owned 129,377 shares of the company's stock, valued at $10,026,717.50. The trade was a 5.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 87,542 shares of company stock valued at $6,609,623 in the last 90 days. 10.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

Institutional investors have recently modified their holdings of the stock. SouthState Corp purchased a new position in Zoom Communications in the 1st quarter worth about $25,000. Wayfinding Financial LLC bought a new position in shares of Zoom Communications during the 1st quarter worth approximately $25,000. REAP Financial Group LLC lifted its holdings in shares of Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company's stock valued at $28,000 after purchasing an additional 229 shares during the last quarter. Raiffeisen Bank International AG acquired a new stake in Zoom Communications in the fourth quarter worth about $30,000. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in shares of Zoom Communications by 177.0% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 385 shares of the company's stock worth $28,000 after buying an additional 246 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

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.