Zoom Communications (NASDAQ:ZM) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target on Zoom Communications from $122 to $126 and kept a buy rating, implying about 26% upside from the current share price.
• Zoom shares were down 5.3% in Tuesday trading to $100.09, even after a recent earnings report that beat expectations on both EPS and revenue and showed 5.5% year-over-year revenue growth.
• Analyst sentiment remains mixed overall, with 14 Buy ratings and 12 Hold ratings; the consensus target price is $108.15, while insiders have recently sold shares under pre-arranged trading plans.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its target price boosted by equities research analysts at Citigroup from $122.00 to $126.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price objective would indicate a potential upside of 25.89% from the stock's current price.

A number of other equities analysts also recently weighed in on ZM. Wall Street Zen downgraded Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Wells Fargo & Company increased their price objective on Zoom Communications from $90.00 to $105.00 and gave the stock an "equal weight" rating in a report on Friday. Mizuho increased their price objective on Zoom Communications from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Friday. Citizens Jmp restated a "market perform" rating on shares of Zoom Communications in a report on Wednesday, May 20th. Finally, Piper Sandler increased their price objective on Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a report on Friday. Fourteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $108.15.

Zoom Communications Stock Down 5.3%

Shares of ZM traded down $5.55 during trading hours on Tuesday, reaching $100.09. The company's stock had a trading volume of 5,405,518 shares, compared to its average volume of 4,452,834. The firm has a market cap of $29.49 billion, a price-to-earnings ratio of 14.70, a P/E/G ratio of 6.04 and a beta of 1.00. Zoom Communications has a 1-year low of $69.15 and a 1-year high of $113.73. The company has a 50 day moving average of $89.35 and a two-hundred day moving average of $86.88.

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, beating analysts' consensus estimates of $1.42 by $0.13. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. Zoom Communications had a return on equity of 12.06% and a net margin of 41.99%.The firm's quarterly revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.43 EPS. 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. As a group, analysts forecast that Zoom Communications will post 3.94 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the transaction, the director owned 142,882 shares in the company, valued at $15,228,363.56. This trade represents a 3.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at 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 stock in a transaction that occurred 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 owned 36,796 shares in the company, valued at approximately $2,988,571.12. This trade represents a 65.52% decrease in their position. 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. Over the last 90 days, insiders have sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Advocate Investing Services LLC acquired a new position in Zoom Communications during the fourth quarter valued at approximately $26,000. Strive Financial Group LLC bought a new stake in shares of Zoom Communications in the fourth quarter valued at approximately $27,000. Toth Financial Advisory Corp bought a new stake in shares of Zoom Communications in the fourth quarter valued at approximately $28,000. Rexford Capital Inc. boosted its position in shares of 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 acquiring an additional 122 shares during the period. Finally, Root Financial Partners LLC bought a new stake in shares of Zoom Communications in the third quarter valued at approximately $33,000. Institutional investors and hedge funds own 66.54% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.