Zoom Communications, Inc. (NASDAQ:ZM) Receives $87.00 Consensus PT from 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.

Shares of Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report) have been given an average recommendation of "Hold" by the twenty-six brokerages that are presently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. The average 1 year price target among brokers that have covered the stock in the last year is $87.00.

ZM has been the subject of several research reports. Morgan Stanley lifted their price objective on shares of Zoom Communications from $79.00 to $85.00 and gave the company an "equal weight" rating in a research note on Thursday, May 22nd. JMP Securities reissued a "market perform" rating on shares of Zoom Communications in a report on Thursday, May 22nd. Scotiabank boosted their price target on Zoom Communications from $75.00 to $85.00 and gave the company a "sector perform" rating in a report on Friday, May 16th. Piper Sandler boosted their target price on shares of Zoom Communications from $77.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 22nd. Finally, Needham & Company LLC raised shares of Zoom Communications from a "hold" rating to a "moderate buy" rating and set a $100.00 price objective for the company in a report on Thursday, May 22nd.

Zoom Communications Stock Performance

NASDAQ ZM traded down $2.69 on Monday, reaching $70.48. 1,186,230 shares of the stock traded hands, compared to its average volume of 2,637,375. Zoom Communications has a 12 month low of $55.06 and a 12 month high of $92.80. The company has a market cap of $21.32 billion, a price-to-earnings ratio of 21.23, a PEG ratio of 11.82 and a beta of 0.68. The company has a fifty day moving average price of $76.73 and a 200-day moving average price of $77.58.

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

Insiders Place Their Bets

In other news, Director Herbert Raymond Mcmaster sold 500 shares of the business's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $75.00, for a total value of $37,500.00. Following the completion of the transaction, the director directly owned 10,901 shares of the company's stock, valued at $817,575. The trade was a 4.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, COO Aparna Bawa sold 10,528 shares of the stock in a transaction on Monday, July 14th. The shares were sold at an average price of $74.78, for a total value of $787,283.84. Following the sale, the chief operating officer directly owned 1,978 shares in the company, valued at approximately $147,914.84. The trade was a 84.18% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 87,542 shares of company stock worth $6,609,623. 11.51% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

Institutional investors have recently added to or reduced their stakes in the business. Wedmont Private Capital lifted its stake in Zoom Communications by 4.1% in the 2nd quarter. Wedmont Private Capital now owns 3,499 shares of the company's stock worth $271,000 after acquiring an additional 137 shares in the last quarter. Smartleaf Asset Management LLC grew its position in Zoom Communications by 6.7% during the first quarter. Smartleaf Asset Management LLC now owns 2,293 shares of the company's stock valued at $172,000 after purchasing an additional 143 shares in the last quarter. Wynn Capital LLC grew its holdings in shares of Zoom Communications by 1.6% during the 1st quarter. Wynn Capital LLC now owns 10,194 shares of the company's stock valued at $752,000 after acquiring an additional 160 shares in the last quarter. Penserra Capital Management LLC boosted its position in Zoom Communications by 12.6% during the second quarter. Penserra Capital Management LLC now owns 1,446 shares of the company's stock valued at $111,000 after purchasing an additional 162 shares during the last quarter. Finally, New York State Teachers Retirement System raised its stake in shares of Zoom Communications by 0.7% during the 1st quarter. New York State Teachers Retirement System now owns 24,298 shares of the company's stock worth $1,792,000 after purchasing an additional 171 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications Company Profile

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.