Zoom Communications (NASDAQ:ZM) Price Target Raised to $105.00 at Robert W. Baird

Key Points

• Robert W. Baird raised its price target on Zoom Communications to $105 from $95 and kept an outperform rating, implying about 6.2% upside from the prior close.
• Analyst sentiment remains mixed overall: Zoom now has an average Hold rating and a consensus price target of $97.05, though several firms recently lifted targets or ratings.
• Zoom’s latest quarterly results showed EPS of $1.44, missing estimates, while revenue came in at $1.25 billion, slightly above expectations and up 5.3% year over year.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price objective lifted by research analysts at Robert W. Baird from $95.00 to $105.00 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Robert W. Baird's target price points to a potential upside of 6.20% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the company. Argus upgraded Zoom Communications to a "hold" rating in a research note on Monday, March 9th. Citigroup lifted their price objective on shares of Zoom Communications from $106.00 to $122.00 and gave the stock a "buy" rating in a research report on Friday. Wolfe Research upgraded shares of Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 price objective on the stock in a report on Thursday, February 5th. KeyCorp increased their price objective on shares of Zoom Communications from $69.00 to $74.00 and gave the company an "underweight" rating in a research report on Thursday, February 26th. Finally, Needham & Company LLC restated a "buy" rating and set a $100.00 target price on shares of Zoom Communications in a research note on Friday, March 13th. Fourteen analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications presently has an average rating of "Hold" and an average target price of $97.05.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $98.87 on Tuesday. Zoom Communications has a 52-week low of $69.15 and a 52-week high of $111.56. The company has a market capitalization of $29.13 billion, a P/E ratio of 15.95, a price-to-earnings-growth ratio of 5.73 and a beta of 1.00. The company has a 50-day simple moving average of $86.89 and a 200 day simple moving average of $86.31.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly 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 business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period last year, the firm earned $1.41 EPS. Zoom Communications'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. As a group, equities analysts forecast that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of Zoom Communications stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the completion of the sale, the director owned 142,882 shares in the company, valued at $15,228,363.56. The trade was a 3.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the sale, the chief financial officer owned 30,467 shares of the company's stock, valued at $2,477,576.44. This trade represents a 21.79% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders have sold 144,329 shares of company stock valued at $12,364,989. 10.78% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Bull Harbor Capital LLC acquired a new stake in shares of Zoom Communications in the first quarter valued at approximately $939,000. Atreides Management LP acquired a new stake in Zoom Communications during the first quarter worth approximately $105,761,000. Talon Private Wealth LLC acquired a new stake in Zoom Communications during the first quarter worth approximately $641,000. Rubric Capital Management LP bought a new position in Zoom Communications during the 1st quarter worth $80,471,000. Finally, Empowered Funds LLC increased its stake in Zoom Communications by 114.0% during the 1st quarter. Empowered Funds LLC now owns 305,821 shares of the company's stock worth $24,585,000 after acquiring an additional 162,902 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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