Zoom Communications (NASDAQ:ZM) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham & Company reissued a "Buy" rating on Zoom with a $100.00 price objective, implying about a 33.6% upside from the prior close.
• Zoom reported Q (quarter) EPS of $1.44 (vs. $1.48 expected) and revenue of $1.25 billion (vs. $1.23 billion expected), and set FY2027 guidance of 5.770–5.810 EPS with Q1 2027 guidance of 1.400–1.420 EPS.
• Analyst sentiment is mixed — 14 Buys, 13 Holds and 1 Sell — leaving an average rating of "Hold" and an average price target of $95.32.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Needham & Company LLC in a research report issued on Friday,Benzinga reports. They presently have a $100.00 price objective on the stock. Needham & Company LLC's price objective would indicate a potential upside of 33.55% from the stock's previous close.

A number of other analysts also recently issued reports on the company. KeyCorp increased their price objective on shares of Zoom Communications from $69.00 to $74.00 and gave the stock an "underweight" rating in a research report on Thursday, February 26th. Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Wedbush restated an "outperform" rating and issued a $95.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Rosenblatt Securities reiterated a "buy" rating and set a $115.00 target price on shares of Zoom Communications in a report on Thursday, February 26th. Finally, Citigroup raised shares of Zoom Communications from a "neutral" rating to a "buy" rating and lifted their price target for the company from $94.00 to $106.00 in a report on Monday, January 12th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications has an average rating of "Hold" and an average target price of $95.32.

Zoom Communications Trading Down 0.1%

Zoom Communications stock opened at $74.88 on Friday. The company has a market cap of $22.17 billion, a price-to-earnings ratio of 12.08, a PEG ratio of 4.35 and a beta of 0.93. The business's 50 day simple moving average is $85.59 and its 200 day simple moving average is $84.55. Zoom Communications has a 12 month low of $64.41 and a 12 month high of $97.58.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The business had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the previous year, the business posted $1.41 EPS. The company's quarterly revenue was up 5.3% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities research analysts forecast that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Santiago Subotovsky sold 2,475 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $77.42, for a total value of $191,614.50. Following the sale, the director owned 153,442 shares of the company's stock, valued at $11,879,479.64. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Michelle Chang sold 8,417 shares of the stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $86.54, for a total value of $728,407.18. Following the transaction, the chief financial officer directly owned 25,482 shares of the company's stock, valued at approximately $2,205,212.28. This trade represents a 24.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 183,084 shares of company stock valued at $15,704,721. 11.51% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

Hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC boosted its stake in Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock worth $591,000 after buying an additional 1,153 shares during the last quarter. Intech Investment Management LLC increased its holdings in shares of Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after buying an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Zoom Communications by 82.0% in the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after purchasing an additional 397 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Zoom Communications during the second quarter worth $217,000. Finally, Envestnet Asset Management Inc. lifted its stake in Zoom Communications by 68.2% in the second quarter. Envestnet Asset Management Inc. now owns 49,370 shares of the company's stock valued at $3,850,000 after acquiring an additional 20,017 shares during the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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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