Zoom Communications (NASDAQ:ZM) Price Target Raised to $120.00

Key Points

• Mizuho raised Zoom Communications’ price target from $100 to $120 and kept an outperform rating, implying about 24% upside from the prior close.
• Zoom’s latest quarter beat expectations, with EPS of $1.55 versus $1.41 expected and revenue of $1.24 billion versus $1.22 billion expected. The company also said revenue rose 5.5% year over year.
• Management raised full-year and next-quarter guidance, while enterprise revenue and retention improved, though the article notes competitive pressure and a slight uptick in churn remain concerns.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price objective upped by equities researchers at Mizuho from $100.00 to $120.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's price objective would indicate a potential upside of 24.03% from the company's previous close.

Other analysts have also issued research reports about the company. Wall Street Zen lowered Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Zacks Research downgraded Zoom Communications from a "strong-buy" rating to a "hold" rating in a report on Friday, February 13th. Argus raised Zoom Communications to a "hold" rating in a report on Monday, March 9th. Citigroup upped their target price on Zoom Communications from $106.00 to $122.00 and gave the company a "buy" rating in a report on Friday, May 15th. Finally, Wolfe Research raised Zoom Communications from a "peer perform" rating to an "outperform" rating and set a $115.00 target price for the company in a report on Thursday, February 5th. Fourteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Zoom Communications currently has a consensus rating of "Moderate Buy" and a consensus target price of $102.65.

Zoom Communications Stock Down 2.7%

Shares of Zoom Communications stock opened at $96.75 on Friday. The firm has a market cap of $28.51 billion, a price-to-earnings ratio of 15.60, a price-to-earnings-growth ratio of 5.69 and a beta of 1.00. The business has a fifty day simple moving average of $88.14 and a 200-day simple moving average of $86.59. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $111.56.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.41 by $0.14. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company's revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. Analysts anticipate that Zoom Communications will post 3.94 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the transaction, the insider directly owned 141,971 shares of the company's stock, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of the company's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer directly owned 36,796 shares in the company, valued at $2,988,571.12. The trade was a 65.52% decrease in their ownership of the stock. 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 sold 144,329 shares of company stock valued at $12,364,989 in the last ninety days. Corporate insiders own 11.51% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Mitsubishi UFJ Asset Management Co. Ltd. increased its position in Zoom Communications by 10.5% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company's stock worth $19,697,000 after purchasing an additional 22,704 shares during the last quarter. Strive Asset Management LLC acquired a new position in Zoom Communications in the 3rd quarter worth about $1,238,000. LSV Asset Management increased its position in Zoom Communications by 5.0% in the 3rd quarter. LSV Asset Management now owns 1,069,440 shares of the company's stock worth $88,229,000 after purchasing an additional 50,579 shares during the last quarter. Krilogy Financial LLC acquired a new position in shares of Zoom Communications during the 3rd quarter valued at about $1,963,000. Finally, Sherry Group Inc. acquired a new position in shares of Zoom Communications during the 4th quarter valued at about $894,000. 66.54% of the stock is owned by institutional investors and hedge funds.

Zoom Communications News Roundup

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...

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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