Zoom Communications (NASDAQ:ZM) Price Target Raised to $130.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised its price target on Zoom Communications to $130 from $110 and kept an outperform rating, implying about 21% upside from the current share price.
• Zoom’s stock jumped 10.8% to $107.19 after the analyst upgrades, with trading volume above its recent average.
• The company also reported a strong quarter, beating earnings and revenue expectations, while multiple other firms lifted targets or improved ratings following the results.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target hoisted by research analysts at Royal Bank Of Canada from $110.00 to $130.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 21.29% from the company's current price.

Other analysts have also recently issued reports about the stock. KeyCorp raised shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday. Benchmark increased their target price on shares of Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a report on Thursday. Jefferies Financial Group restated a "buy" rating and set a $118.00 price target on shares of Zoom Communications in a research report on Friday. Citigroup upped their price target on shares of Zoom Communications from $106.00 to $122.00 and gave the stock a "buy" rating in a research report on Friday, May 15th. Finally, Robert W. Baird upped their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Tuesday. Fourteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, Zoom Communications has a consensus rating of "Moderate Buy" and an average target price of $107.95.

Zoom Communications Stock Up 10.8%

Shares of NASDAQ:ZM traded up $10.44 on Friday, reaching $107.19. 5,822,423 shares of the company's stock were exchanged, compared to its average volume of 4,412,194. The firm has a market capitalization of $31.58 billion, a price-to-earnings ratio of 17.30, a PEG ratio of 5.69 and a beta of 1.00. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $113.73. The business's 50-day moving average is $88.14 and its two-hundred day moving average is $86.59.

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

Insider Buying and Selling at Zoom Communications

In related news, COO Aparna Bawa sold 12,886 shares of the stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the completion of the transaction, the chief operating officer owned 1,978 shares in the company, valued at $173,312.36. This represents a 86.69% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the stock in a transaction dated 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 of the company's stock, valued at $2,477,576.44. This represents a 21.79% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Corporate insiders own 11.51% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently bought and sold shares of ZM. NewEdge Advisors LLC grew its position in Zoom Communications by 16.8% in the 1st quarter. NewEdge Advisors LLC now owns 8,009 shares of the company's stock valued at $591,000 after buying an additional 1,153 shares in the last quarter. Intech Investment Management LLC grew its position in Zoom Communications by 59.1% in the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after buying an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. grew its position in Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after buying an additional 397 shares in the last quarter. Sivia Capital Partners LLC bought a new position in Zoom Communications in the 2nd quarter valued at about $217,000. Finally, Invesco Ltd. lifted its holdings in Zoom Communications by 7.0% in the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company's stock valued at $56,942,000 after acquiring an additional 47,749 shares during the last quarter. 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: Rosenblatt raised its price target to $130 and reiterated a buy rating, citing upside from strong execution and AI-driven growth.
• Positive Sentiment: Needham lifted its target to $130 and kept a buy rating following the earnings beat.
• Positive Sentiment: BTIG increased its target to $125 and maintained a buy rating.
• Positive Sentiment: Mizuho raised its target to $120 and kept an outperform rating.
• Positive Sentiment: Benchmark also raised its target, reflecting broader analyst optimism after the quarter.
• Positive Sentiment: KeyCorp upgraded Zoom from underweight to sector weight, indicating a more constructive view on the stock.
• Neutral Sentiment: Piper Sandler raised its target but kept a neutral rating, suggesting some upside is already priced in.

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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