Zoom Communications (NASDAQ:ZM) Given New $121.00 Price Target at Benchmark

Key Points

• Benchmark raised its price target on Zoom Communications from $115 to $121 and reiterated a buy rating, implying about 21.5% upside from the current share price.
• Other analysts have also been positive recently, including Citigroup at $122 and Robert W. Baird at $105, though the overall consensus rating remains Hold with a consensus target of $97.57.
• Zoom’s latest quarter showed revenue growth of 5.3% to $1.25 billion, but EPS missed estimates slightly at $1.44 versus $1.48 expected; the stock was trading at $99.61 at the time of the report.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target hoisted by equities research analysts at Benchmark from $115.00 to $121.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. Benchmark's target price points to a potential upside of 21.47% from the company's current price.

ZM has been the subject of a number of other research reports. Robert W. Baird boosted their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the company an "outperform" rating in a report on Tuesday. Citigroup raised their target price on shares of Zoom Communications from $106.00 to $122.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Argus upgraded shares of Zoom Communications to a "hold" rating in a research report on Monday, March 9th. Citizens Jmp reiterated a "market perform" rating on shares of Zoom Communications in a research note on Wednesday. Finally, Rosenblatt Securities reissued a "buy" rating and set a $115.00 price target on shares of Zoom Communications in a research report on Thursday, February 26th. Fourteen analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $97.57.

Zoom Communications Price Performance

Shares of NASDAQ ZM opened at $99.61 on Thursday. The stock's fifty day moving average price is $87.73 and its two-hundred day moving average price is $86.52. Zoom Communications has a one year low of $69.15 and a one year high of $111.56. The firm has a market cap of $29.35 billion, a price-to-earnings ratio of 16.07, a P/E/G ratio of 5.57 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing analysts' consensus estimates of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period in the prior year, the business posted $1.41 EPS. The firm's quarterly revenue was up 5.3% compared to the same quarter last year. 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. On average, equities analysts anticipate that Zoom Communications will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer owned 30,467 shares in the company, valued at approximately $2,477,576.44. This trade represents a 21.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Santiago Subotovsky sold 5,274 shares of Zoom Communications stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the transaction, the director directly owned 142,882 shares of the company's stock, valued at $15,228,363.56. This represents a 3.56% decrease in their position. 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. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 over the last three months. Insiders own 11.51% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Advocate Investing Services LLC bought a new position in shares of Zoom Communications in the fourth quarter valued at approximately $26,000. Strive Financial Group LLC bought a new position in Zoom Communications during the 4th quarter valued at $27,000. Toth Financial Advisory Corp purchased a new position in Zoom Communications during the 4th quarter worth $28,000. Rexford Capital Inc. boosted its holdings in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock worth $31,000 after acquiring an additional 122 shares during the last quarter. Finally, Root Financial Partners LLC bought a new stake in shares of Zoom Communications in the 3rd quarter worth $33,000. 66.54% of the stock is owned by institutional investors.

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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