Zoom Communications (NASDAQ:ZM) Given Hold (C+) Rating at Weiss Ratings

Key Points

• Zoom Communications (NASDAQ: ZM) has received a "hold (C+)" rating from Weiss Ratings, with several other firms adjusting their price targets and ratings accordingly.
• The company's stock traded at $79.42 with a market cap of $24.03 billion, and it has a 1-year range of $64.41 to $92.80.
• Zoom reported a quarterly EPS of $0.99, missing estimates of $1.38, while revenue increased by 4.7% to $1.22 billion compared to the previous year.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "hold (c+)" rating restated by analysts at Weiss Ratings in a research note issued to investors on Tuesday,Weiss Ratings reports.

Several other analysts have also recently weighed in on ZM. KeyCorp cut their price target on shares of Zoom Communications from $73.00 to $69.00 and set an "underweight" rating on the stock in a report on Friday, August 22nd. Zacks Research upgraded shares of Zoom Communications from a "hold" rating to a "strong-buy" rating in a report on Thursday, September 18th. Citigroup lifted their price target on shares of Zoom Communications from $84.00 to $85.00 and gave the company a "neutral" rating in a report on Monday, August 25th. Benchmark boosted their target price on shares of Zoom Communications from $102.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, September 18th. Finally, Wells Fargo & Company assumed coverage on shares of Zoom Communications in a report on Tuesday, September 30th. They set an "equal weight" rating and a $90.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $91.74.

Zoom Communications Stock Performance

Shares of NASDAQ ZM traded up $0.25 during mid-day trading on Tuesday, hitting $79.42. The stock had a trading volume of 711,005 shares, compared to its average volume of 2,817,913. Zoom Communications has a 1 year low of $64.41 and a 1 year high of $92.80. The business has a 50 day moving average price of $79.93 and a two-hundred day moving average price of $77.71. The firm has a market cap of $24.03 billion, a P/E ratio of 20.95, a price-to-earnings-growth ratio of 10.98 and a beta of 0.78.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its earnings results on Thursday, August 21st. The company reported $0.99 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.39). Zoom Communications had a return on equity of 11.91% and a net margin of 24.99%.The firm had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same period in the previous year, the firm earned $1.39 earnings per share. The firm's quarterly revenue was up 4.7% compared to the same quarter last year. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. Equities research analysts predict that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In related news, Director Santiago Subotovsky sold 2,475 shares of the business's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $80.78, for a total transaction of $199,930.50. Following the completion of the transaction, the director directly owned 152,644 shares in the company, valued at approximately $12,330,582.32. The trade was a 1.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Herbert Raymond Mcmaster sold 2,000 shares of the business's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $83.00, for a total value of $166,000.00. Following the transaction, the director owned 7,901 shares of the company's stock, valued at approximately $655,783. This trade represents a 20.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 13,020 shares of company stock worth $1,070,288. 10.78% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ZM. Wayfinding Financial LLC bought a new position in shares of Zoom Communications during the 1st quarter valued at approximately $25,000. SouthState Corp bought a new position in Zoom Communications in the 1st quarter worth approximately $25,000. Elevation Point Wealth Partners LLC bought a new position in Zoom Communications in the 2nd quarter worth approximately $27,000. REAP Financial Group LLC boosted its stake in Zoom Communications by 181.7% in the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company's stock worth $28,000 after purchasing an additional 229 shares during the period. Finally, GKV Capital Management Co. Inc. bought a new position in Zoom Communications in the 1st quarter worth approximately $31,000. 66.54% of the stock is currently 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.

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