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

Key Points

• Rosenblatt Securities has increased its price target for Zoom Communications from $100.00 to $110.00, indicating a potential upside of 50.33% from the current stock price.
• Zoom recently reported earnings of $1.43 per share, exceeding analyst expectations and reflecting a year-over-year revenue increase of 2.9%.
• Multiple analysts have varying ratings on the stock, with a consensus target price averaging $88.30, while insiders have sold a total of $6.6 million worth of shares in the past quarter.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its target price boosted by Rosenblatt Securities from $100.00 to $110.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Rosenblatt Securities' price target indicates a potential upside of 50.33% from the stock's current price.

A number of other equities research analysts also recently issued reports on ZM. Scotiabank increased their price objective on shares of Zoom Communications from $75.00 to $85.00 and gave the stock a "sector perform" rating in a research note on Friday, May 16th. Wedbush reiterated an "outperform" rating and set a $95.00 price objective on shares of Zoom Communications in a research note on Friday. JMP Securities reiterated a "market perform" rating on shares of Zoom Communications in a research note on Thursday, May 22nd. Benchmark reiterated a "buy" rating and set a $97.00 price objective on shares of Zoom Communications in a research note on Tuesday, May 20th. Finally, KeyCorp began coverage on shares of Zoom Communications in a report on Friday, June 6th. They issued an "underweight" rating and a $73.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $88.30.

Zoom Communications Stock Up 1.4%

ZM opened at $73.17 on Friday. The stock has a market capitalization of $22.14 billion, a price-to-earnings ratio of 21.97, a P/E/G ratio of 18.89 and a beta of 0.68. Zoom Communications has a twelve month low of $60.71 and a twelve month high of $92.80. The company has a 50-day simple moving average of $74.96 and a 200 day simple moving average of $76.73.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings data on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.30 by $0.13. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.17 billion. Zoom Communications had a net margin of 22.31% and a return on equity of 11.08%. The business's revenue for the quarter was up 2.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.35 earnings per share. Sell-side analysts anticipate that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Velchamy Sankarlingam sold 7,661 shares of the firm's stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $77.50, for a total value of $593,727.50. Following the completion of the transaction, the insider owned 129,377 shares in the company, valued at $10,026,717.50. This trade represents a 5.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Aparna Bawa sold 10,528 shares of the firm's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $74.78, for a total transaction of $787,283.84. Following the completion of the transaction, the chief operating officer owned 1,978 shares of the company's stock, valued at approximately $147,914.84. This trade represents a 84.18% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 87,542 shares of company stock worth $6,609,623 over the last quarter. 11.51% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ZM. Wayfinding Financial LLC bought a new position in Zoom Communications in the 1st quarter valued at approximately $25,000. SouthState Corp acquired a new stake in Zoom Communications during the 1st quarter valued at approximately $25,000. Elevation Point Wealth Partners LLC acquired a new stake in Zoom Communications during the 2nd quarter valued at approximately $27,000. MassMutual Private Wealth & Trust FSB increased its position in Zoom Communications by 177.0% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 385 shares of the company's stock valued at $28,000 after purchasing an additional 246 shares during the period. Finally, REAP Financial Group LLC increased its position in Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company's stock valued at $28,000 after purchasing an additional 229 shares during the period. Institutional investors own 66.54% of the company's stock.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

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