Zoom Communications (NASDAQ:ZM) Stock Rating Lowered by Wall Street Zen

Key Points

• Zoom Communications has been dropped from a "strong-buy" rating to a "buy" rating by analysts at Wall Street Zen, indicating a shift in investor sentiment.
• The stock currently has a consensus target price of $91.30 based on ratings from various analysts, with an average rating of "Hold."
• Insider selling has occurred, with CEO Eric S. Yuan and a director selling a combined over 90,000 shares recently, suggesting possible concerns among insiders about the company's future performance.

Wall Street Zen cut shares of Zoom Communications (NASDAQ:ZM - Free Report) from a strong-buy rating to a buy rating in a research report report published on Saturday.

Several other research analysts also recently weighed in on the company. Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 target price on shares of Zoom Communications in a research note on Thursday. KeyCorp reduced their price target on Zoom Communications from $73.00 to $69.00 and set an "underweight" rating on the stock in a research report on Friday, August 22nd. Robert W. Baird cut their target price on Zoom Communications from $100.00 to $95.00 and set an "outperform" rating on the stock in a research report on Friday, August 22nd. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $87.00 price target on shares of Zoom Communications in a research report on Thursday. Finally, Mizuho lifted their target price on Zoom Communications from $95.00 to $100.00 and gave the company an "outperform" rating in a research note on Tuesday, August 26th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $91.30.

Zoom Communications Stock Performance

NASDAQ ZM traded up $0.24 during trading hours on Friday, reaching $84.40. The stock had a trading volume of 1,263,049 shares, compared to its average volume of 2,840,586. Zoom Communications has a 52-week low of $64.41 and a 52-week high of $92.80. The stock has a market cap of $25.54 billion, a P/E ratio of 22.28, a price-to-earnings-growth ratio of 11.73 and a beta of 0.57. The stock has a fifty day moving average of $77.53 and a 200 day moving average of $76.99.

Insider Buying and Selling at Zoom Communications

In related news, insider Velchamy Sankarlingam sold 2,595 shares of the firm's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $85.09, for a total transaction of $220,808.55. Following the sale, the insider owned 130,242 shares of the company's stock, valued at approximately $11,082,291.78. This trade represents a 1.95% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jonathan Chadwick sold 25,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $74.86, for a total value of $1,871,500.00. Following the sale, the director directly owned 5,875 shares in the company, valued at $439,802.50. The trade was a 80.97% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 90,400 shares of company stock worth $6,871,114 in the last three months. 11.51% of the stock is owned by insiders.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in Zoom Communications by 0.6% during the second quarter. Vanguard Group Inc. now owns 24,951,437 shares of the company's stock worth $1,945,713,000 after purchasing an additional 154,783 shares during the period. State Street Corp grew its holdings in Zoom Communications by 6.0% during the second quarter. State Street Corp now owns 7,189,501 shares of the company's stock worth $560,637,000 after purchasing an additional 410,051 shares during the period. Norges Bank bought a new position in Zoom Communications during the second quarter worth about $539,998,000. T. Rowe Price Investment Management Inc. lifted its position in Zoom Communications by 0.6% during the first quarter. T. Rowe Price Investment Management Inc. now owns 6,421,733 shares of the company's stock worth $473,732,000 after acquiring an additional 36,210 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in Zoom Communications by 0.5% during the second quarter. Geode Capital Management LLC now owns 4,795,307 shares of the company's stock worth $373,504,000 after acquiring an additional 23,910 shares during the last quarter. Institutional investors own 66.54% of the company's stock.

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.