Zoom Communications (NASDAQ:ZM) Price Target Raised to $130.00

Key Points

• Needham & Company raised Zoom Communications’ price target to $130 from $100 and kept a buy rating, implying about 34% upside from the prior close.
• Other analysts also turned more constructive, with several price-target increases and ratings like outperform and buy; the broader consensus remains Moderate Buy with an average target of $102.65.
• Zoom’s latest quarter beat expectations on both earnings per share and revenue, and the company also raised its guidance, supporting the bullish outlook despite some competitive pressure and insider selling.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its target price increased by research analysts at Needham & Company LLC from $100.00 to $130.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target would indicate a potential upside of 34.37% from the stock's previous close.

Several other research firms also recently issued reports on ZM. Mizuho boosted their price objective on Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Friday. Argus upgraded Zoom Communications to a "hold" rating in a report on Monday, March 9th. Benchmark boosted their price objective on Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a report on Thursday. Weiss Ratings upgraded Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 1st. Finally, Citigroup boosted their price objective on Zoom Communications from $106.00 to $122.00 and gave the stock a "buy" rating in a report on Friday, May 15th. Fourteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $102.65.

Zoom Communications Stock Performance

Shares of ZM opened at $96.75 on Friday. Zoom Communications has a 1 year low of $69.15 and a 1 year high of $111.56. The company 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 firm has a fifty day moving average of $88.14 and a 200-day moving average of $86.59.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.41 by $0.14. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The business had revenue of $1.24 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter in the prior year, the company posted $1.43 earnings per share. The company's quarterly revenue was up 5.5% compared to the same quarter last year. 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 predict that Zoom Communications will post 3.94 EPS for the current year.

Insider Buying and Selling

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total value of $653,188.80. Following the completion of the sale, the insider 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 position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 5,274 shares of the business's stock in a transaction that occurred on 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 directly owned 142,882 shares of the company's stock, valued at approximately $15,228,363.56. The trade was a 3.56% 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. Insiders have sold 144,329 shares of company stock worth $12,364,989 over the last ninety days. 11.51% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zoom Communications

Large investors have recently made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of 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 valued at $19,697,000 after buying an additional 22,704 shares in the last quarter. Strive Asset Management LLC bought a new stake in shares of Zoom Communications in the 3rd quarter valued at approximately $1,238,000. LSV Asset Management boosted its position in Zoom Communications by 5.0% during the third 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 period. Krilogy Financial LLC bought a new stake in Zoom Communications during the third quarter worth approximately $1,963,000. Finally, Sherry Group Inc. bought a new stake in Zoom Communications during the fourth quarter worth approximately $894,000. Institutional investors own 66.54% of the company's stock.

Key Zoom Communications News

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 ...

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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