Zoom Communications (NASDAQ:ZM) Stock Rating Upgraded by KeyCorp

Key Points

• KeyCorp upgraded Zoom Communications from “underweight” to “sector weight,” adding to a mixed but generally constructive analyst backdrop. The stock now carries a consensus rating of “Moderate Buy” with an average price target of $102.65.
• Zoom’s latest earnings beat expectations, reporting EPS of $1.55 and revenue of about $1.24 billion, both ahead of estimates. Quarterly revenue rose 5.5% year over year, and the company also raised its FY 2027 and Q2 2027 guidance.
• Insiders sold shares and institutions remained active, with several executives trimming positions while hedge funds and asset managers increased or adjusted holdings. Institutional investors own about 66.54% of Zoom’s stock, highlighting continued professional interest in the name.

Zoom Communications (NASDAQ:ZM - Get Free Report) was upgraded by research analysts at KeyCorp from an "underweight" rating to a "sector weight" rating in a note issued to investors on Friday,Benzinga reports.

ZM has been the subject of a number of other research reports. Wall Street Zen cut shares of Zoom Communications from a "buy" rating to a "hold" rating in a report on Saturday, March 7th. Robert W. Baird raised their target price on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a report on Tuesday. Needham & Company LLC reissued a "buy" rating and set a $100.00 target price on shares of Zoom Communications in a report on Friday, March 13th. Sanford C. Bernstein reduced their target price on shares of Zoom Communications from $90.00 to $88.00 and set a "market perform" rating for the company in a report on Thursday, February 26th. Finally, Weiss Ratings raised shares of Zoom Communications from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 1st. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $102.65.

Zoom Communications Trading Down 2.7%

NASDAQ ZM opened at $96.75 on Friday. The company has a fifty day simple moving average of $88.14 and a two-hundred day simple moving average of $86.59. The stock has a market cap of $28.51 billion, a P/E ratio of 15.60, a P/E/G ratio of 5.69 and a beta of 1.00. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $111.56.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted 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. The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The business's quarterly revenue was up 5.5% on a year-over-year basis. During the same quarter last year, the company posted $1.43 earnings per share. 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 forecast that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Activity

In related news, COO Aparna Bawa sold 12,886 shares of the firm's stock in a transaction on Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the completion of the transaction, the chief operating officer owned 1,978 shares of the company's stock, valued at $173,312.36. This trade represents a 86.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total transaction of $653,188.80. Following the completion of the transaction, the insider directly owned 141,971 shares of the company's stock, valued at $12,130,002.24. The trade was a 5.11% 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. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 over the last quarter. Insiders own 11.51% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ZM. NewEdge Advisors LLC increased its holdings in Zoom Communications by 16.8% in the first 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 increased its stake in shares of Zoom Communications by 59.1% during the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company's stock worth $1,238,000 after purchasing an additional 6,235 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of Zoom Communications by 82.0% during the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company's stock worth $65,000 after purchasing an additional 397 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Zoom Communications during the second quarter worth about $217,000. Finally, Invesco Ltd. increased its stake in shares of Zoom Communications by 7.0% during the second quarter. Invesco Ltd. now owns 730,207 shares of the company's stock worth $56,942,000 after purchasing an additional 47,749 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: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI ...

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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