Zoom Communications (NASDAQ:ZM) Given Buy Rating at BTIG Research

Key Points

• BTIG Research reiterated a “buy” rating on Zoom Communications and set a $125 price target, implying 16.35% upside from the prior close.
• Analyst sentiment remains positive, with 16 buy ratings and 12 hold ratings; the consensus rating is “Moderate Buy” with an average price target of $111.64.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted earnings per share versus $1.42 expected and $1.24 billion in revenue, up 5.5% year over year. Insiders sold 56,155 shares worth approximately $5.65 million during the last quarter.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "buy" rating restated by research analysts at BTIG Research in a note issued to investors on Monday,Benzinga reports. They presently have a $125.00 price objective on the stock. BTIG Research's price target suggests a potential upside of 16.35% from the stock's previous close.

Several other research firms also recently weighed in on ZM. Citigroup lifted their price objective on Zoom Communications from $122.00 to $126.00 and gave the company a "buy" rating in a report on Tuesday, May 26th. Jefferies Financial Group boosted their price target on Zoom Communications from $105.00 to $118.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Rosenblatt Securities reiterated a "buy" rating and issued a $130.00 target price on shares of Zoom Communications in a report on Friday. Royal Bank Of Canada reissued an "outperform" rating and set a $130.00 target price on shares of Zoom Communications in a research report on Tuesday, June 30th. Finally, Robert W. Baird increased their price objective on Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a report on Tuesday, May 19th. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $111.64.

Zoom Communications Price Performance

Shares of ZM opened at $107.43 on Monday. The firm has a market capitalization of $31.50 billion, a price-to-earnings ratio of 15.78, a PEG ratio of 5.67 and a beta of 1.00. The company has a 50-day moving average of $93.62 and a 200 day moving average of $91.12. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. The firm had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The company's revenue was up 5.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.43 earnings per share. On average, equities analysts anticipate that Zoom Communications will post 4.21 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Santiago Subotovsky sold 7,911 shares of Zoom Communications stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the transaction, the director directly owned 127,060 shares in the company, valued at approximately $12,874,989.80. This trade represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,644 shares of the business's stock in a transaction that occurred on Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the transaction, the insider directly owned 148,403 shares of the company's stock, valued at $13,650,107.94. The trade was a 4.90% 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. In the last quarter, insiders sold 56,155 shares of company stock worth $5,654,761. Corporate insiders own 8.83% of the company's stock.

Institutional Trading of Zoom Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Advocate Investing Services LLC acquired a new stake in shares of Zoom Communications during the 4th quarter valued at about $26,000. Strive Financial Group LLC purchased a new position in shares of Zoom Communications during the 4th quarter valued at approximately $27,000. Thurston Springer Miller Herd & Titak Inc. lifted its position in shares of Zoom Communications by 133.3% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock valued at $30,000 after buying an additional 200 shares in the last quarter. Rexford Capital Inc. grew its stake in Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after acquiring an additional 122 shares during the period. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA grew its stake in Zoom Communications by 83.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock valued at $38,000 after acquiring an additional 200 shares during the period. Institutional investors and hedge funds own 66.54% of the company's stock.

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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