Zoom Communications (NASDAQ:ZM) Receives Neutral Rating from Cantor Fitzgerald

Key Points

• Cantor Fitzgerald reaffirmed a “neutral” rating on Zoom Communications with a $104 price target, implying approximately 3.19% downside from the reported share price.
• Analyst sentiment remains broadly positive, with 16 Buy ratings and 12 Holds producing a “Moderate Buy” consensus and an average price target of $111.64.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted EPS and $1.24 billion in revenue, while revenue grew 5.5% year over year; insiders sold $5.65 million of shares over the past 90 days.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "neutral" rating reaffirmed by equities researchers at Cantor Fitzgerald in a research report issued on Monday,Benzinga reports. They currently have a $104.00 target price on the stock. Cantor Fitzgerald's target price indicates a potential downside of 3.19% from the stock's current price.

Other equities analysts have also recently issued research reports about the stock. Robert W. Baird increased their price objective on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 19th. HSBC boosted their target price on Zoom Communications from $107.00 to $133.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Benchmark lifted their price objective on Zoom Communications from $115.00 to $121.00 and gave the company a "buy" rating in a research note on Thursday, May 21st. Mizuho boosted their price objective on Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a report on Friday, May 22nd. Finally, Rosenblatt Securities reissued a "buy" rating and set a $130.00 target price on shares of Zoom Communications in a research note on Friday. Sixteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $111.64.

Zoom Communications Stock Performance

NASDAQ ZM opened at $107.43 on Monday. The stock has a fifty day simple moving average of $93.62 and a 200-day simple moving average of $91.12. The stock has a market cap of $31.50 billion, a PE ratio of 15.78, a P/E/G ratio of 5.67 and a beta of 1.00. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.13. 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 41.99% and a return on equity of 11.87%. Zoom Communications's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.43 earnings per share. Research analysts predict that Zoom Communications will post 4.21 EPS for the current year.

Insider Buying and Selling

In related news, insider Velchamy Sankarlingam sold 7,644 shares of Zoom Communications stock in a transaction on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total value of $703,095.12. Following the completion of the transaction, the insider directly owned 148,403 shares in the company, valued at approximately $13,650,107.94. This trade represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, 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 12,100 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $100.17, for a total value of $1,212,057.00. Following the transaction, the chief executive officer directly owned 22,998 shares of the company's stock, valued at $2,303,709.66. The trade was a 34.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 56,155 shares of company stock worth $5,654,761 over the last ninety days. Insiders own 8.83% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Advocate Investing Services LLC acquired a new stake in Zoom Communications in the fourth quarter valued at approximately $26,000. Strive Financial Group LLC acquired a new stake in shares of Zoom Communications in the 4th quarter valued at $27,000. Thurston Springer Miller Herd & Titak Inc. increased its holdings in Zoom Communications by 133.3% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company's stock valued at $30,000 after buying an additional 200 shares during the last quarter. Rexford Capital Inc. increased its holdings in Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after buying an additional 122 shares during the last quarter. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA raised its stake in Zoom Communications by 83.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 440 shares of the company's stock valued at $38,000 after buying an additional 200 shares in the last quarter. Hedge funds and other institutional investors 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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