Zoom Communications (NASDAQ:ZM) Reaches New 12-Month High - Still a Buy?

Key Points

• New 52-week high: Zoom shares reached $97.63 and are trading above the consensus analyst target of $95.32, with a market cap around $28.6 billion and a P/E near 15.7.
• Analysts are split—14 rate ZM a Buy, 13 a Hold and 1 a Sell—producing an overall consensus rating of Hold.
• Operational and insider notes: quarterly EPS of $1.44 missed estimates by $0.04 while revenue of $1.25B beat expectations (+5.3% YoY), and CEO Eric S. Yuan sold 69,923 shares (~$5.68M) as insiders disposed of ~138,887 shares in the past three months.

Zoom Communications, Inc. (NASDAQ:ZM - Get Free Report)'s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $97.63 and last traded at $97.3930, with a volume of 2416615 shares. The stock had previously closed at $95.76.

Analysts Set New Price Targets

Several research firms have commented on ZM. Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. Needham & Company LLC reissued a "buy" rating and set a $100.00 target price on shares of Zoom Communications in a research report on Friday, March 13th. Piper Sandler lifted their target price on shares of Zoom Communications from $85.00 to $91.00 and gave the stock a "neutral" rating in a research report on Monday, January 5th. Citigroup raised Zoom Communications from a "neutral" rating to a "buy" rating and raised their target price for the company from $94.00 to $106.00 in a research report on Monday, January 12th. Finally, Argus raised Zoom Communications to a "hold" rating in a research report on Monday, March 9th. Fourteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $95.32.

Zoom Communications Stock Performance

The company's 50 day moving average price is $81.94 and its 200-day moving average price is $84.62. The company has a market cap of $28.63 billion, a PE ratio of 15.67, a price-to-earnings-growth ratio of 5.20 and a beta of 0.88.

Zoom Communications (NASDAQ:ZM - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the previous year, the business earned $1.41 EPS. The company's revenue for the quarter was up 5.3% on a year-over-year basis. 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. Equities research analysts expect that Zoom Communications, Inc. will post 3.94 EPS for the current year.

Insiders Place Their Bets

In related news, Director Santiago Subotovsky sold 2,643 shares of Zoom Communications stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $87.32, for a total value of $230,786.76. Following the completion of the transaction, the director directly owned 150,799 shares in the company, valued at approximately $13,167,768.68. The trade was a 1.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 69,923 shares of Zoom Communications stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $81.22, for a total transaction of $5,679,146.06. Following the completion of the transaction, the chief executive officer owned 36,796 shares of the company's stock, valued at $2,988,571.12. This represents a 65.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 138,887 shares of company stock worth $11,590,330 in the last three months. Insiders own 10.78% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ZM. NewEdge Advisors LLC grew its stake 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 shares of Zoom Communications by 59.1% during the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock valued at $1,238,000 after purchasing an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. grew its position in shares of Zoom Communications by 82.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock valued at $65,000 after purchasing an additional 397 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of Zoom Communications during the 2nd quarter valued at $217,000. Finally, Invesco Ltd. grew its position in shares of Zoom Communications by 7.0% during the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company's stock valued at $56,942,000 after purchasing an additional 47,749 shares in the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

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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