Zoom Communications (NASDAQ:ZM) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on Zoom Communications from $90 to $105, while keeping an “equal weight” rating. The new target still implies a slight downside from the stock’s prior close.
• Zoom shares jumped 10.8% to $107.19 on Friday after the company reported stronger-than-expected quarterly results, including EPS of $1.55 versus estimates of $1.41 and revenue of $1.24 billion.
• Analyst sentiment has turned more positive overall, with multiple firms lifting targets and some upgrading the stock. MarketBeat says Zoom has a consensus rating of Moderate Buy with an average target price of $107.95.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its price target lifted by analysts at Wells Fargo & Company from $90.00 to $105.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target points to a potential downside of 2.04% from the stock's previous close.

ZM has been the subject of several other research reports. Mizuho upped their price objective on Zoom Communications from $100.00 to $120.00 and gave the company an "outperform" rating in a report on Friday. KeyCorp upgraded Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday. Piper Sandler boosted their target price on Zoom Communications from $91.00 to $107.00 and gave the stock a "neutral" rating in a research report on Friday. Morgan Stanley set a $105.00 target price on Zoom Communications in a research report on Friday. Finally, BTIG Research boosted their target price on Zoom Communications from $100.00 to $125.00 and gave the stock a "buy" rating in a research report on Friday. Fourteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, Zoom Communications has a consensus rating of "Moderate Buy" and an average target price of $107.95.

Zoom Communications Stock Up 10.8%

ZM stock traded up $10.44 during trading 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. Zoom Communications has a 1-year low of $69.15 and a 1-year high of $113.73. The company's fifty day moving average price is $88.14 and its 200-day moving average price is $86.59. The firm has a market cap of $31.58 billion, a PE ratio of 17.30, a P/E/G ratio of 5.69 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM - Get Free Report) last announced its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the previous year, the firm posted $1.43 EPS. The firm's quarterly revenue was up 5.5% on a year-over-year basis. 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, sell-side analysts expect that Zoom Communications will post 3.94 earnings per share for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In other news, CEO Eric S. Yuan sold 69,923 shares of Zoom Communications stock in a transaction on Monday, April 13th. The stock was sold at an average price of $81.22, for a total transaction 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. The trade was a 65.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Aparna Bawa sold 12,886 shares of the business's 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 trade represents a 86.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 in the last ninety days. Company insiders own 11.51% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ZM. Norges Bank purchased a new position in Zoom Communications in the fourth quarter valued at about $509,788,000. AQR Capital Management LLC grew its stake in Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock valued at $1,052,328,000 after purchasing an additional 3,718,186 shares in the last quarter. Atreides Management LP purchased a new position in Zoom Communications in the first quarter valued at about $105,761,000. Two Sigma Investments LP purchased a new position in Zoom Communications in the third quarter valued at about $86,709,000. Finally, Vanguard Group Inc. boosted its stake in shares of Zoom Communications by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock worth $2,327,002,000 after acquiring an additional 1,029,623 shares in the last quarter. Hedge funds and other 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.

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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