UBS Group Begins Coverage on Zoom Communications (NASDAQ:ZM)

Key Points

• UBS Group has upgraded Zoom Communications' stock rating to a "hold", reflecting a shift in analyst sentiment towards the company.
• Zoom reported earnings that missed expectations, with an EPS of $0.99, below the consensus estimate of $1.38, but still showed revenue growth of 4.7% year-over-year.
• Insider transactions revealed significant stock sales, with insider Velchamy Sankarlingam selling over 7,600 shares, indicating a decrease in ownership in the company.

Stock analysts at UBS Group began coverage on shares of Zoom Communications (NASDAQ:ZM - Get Free Report) in a note issued to investors on Monday, Marketbeat Ratings reports. The firm set a "neutral" rating and a $85.00 price target on the stock. UBS Group's price target points to a potential upside of 3.77% from the stock's current price.

Several other equities analysts have also commented on the company. Morgan Stanley initiated coverage on Zoom Communications in a report on Tuesday. They issued an "equal weight" rating and a $85.00 target price on the stock. Royal Bank Of Canada restated an "outperform" rating and issued a $100.00 price objective on shares of Zoom Communications in a research note on Thursday, September 18th. Rosenblatt Securities restated a "buy" rating and issued a $110.00 price objective on shares of Zoom Communications in a research note on Thursday, September 18th. Dbs Bank upgraded shares of Zoom Communications to a "moderate buy" rating in a research note on Tuesday, September 16th. Finally, Cantor Fitzgerald restated a "neutral" rating and issued a $87.00 price objective on shares of Zoom Communications in a research note on Thursday, September 18th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Zoom Communications currently has an average rating of "Hold" and an average price target of $91.74.

Zoom Communications Price Performance

NASDAQ:ZM opened at $81.91 on Monday. The firm has a market capitalization of $24.78 billion, a PE ratio of 21.61, a price-to-earnings-growth ratio of 10.92 and a beta of 0.78. The business's fifty day moving average price is $80.79 and its 200 day moving average price is $77.96. Zoom Communications has a 12 month low of $64.41 and a 12 month high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its earnings results on Thursday, August 21st. The company reported $0.99 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.39). The business had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.20 billion. Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. The business's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period last year, the company earned $1.39 EPS. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. As a group, equities analysts anticipate that Zoom Communications will post 2.93 EPS for the current year.

Insider Buying and Selling at Zoom Communications

In other news, COO Aparna Bawa sold 10,528 shares of the stock in a transaction dated Thursday, October 16th. The shares were sold at an average price of $79.77, for a total transaction of $839,818.56. Following the completion of the sale, the chief operating officer owned 1,978 shares in the company, valued at approximately $157,785.06. This represents a 84.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $80.78, for a total transaction of $199,930.50. Following the sale, the director owned 152,644 shares of the company's stock, valued at $12,330,582.32. This trade represents a 1.60% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 98,856 shares of company stock valued at $8,009,892. Corporate insiders own 10.78% of the company's stock.

Institutional Investors Weigh In On Zoom Communications

Several hedge funds have recently made changes to their positions in the business. Norges Bank acquired a new stake in Zoom Communications in the second quarter valued at about $539,998,000. Acadian Asset Management LLC lifted its position in Zoom Communications by 41.1% in the second quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company's stock valued at $293,909,000 after purchasing an additional 1,097,333 shares during the period. Pacer Advisors Inc. lifted its position in Zoom Communications by 54.4% in the third quarter. Pacer Advisors Inc. now owns 2,695,193 shares of the company's stock valued at $222,353,000 after purchasing an additional 949,829 shares during the period. Robeco Institutional Asset Management B.V. lifted its position in Zoom Communications by 63.5% in the second quarter. Robeco Institutional Asset Management B.V. now owns 2,137,093 shares of the company's stock valued at $166,651,000 after purchasing an additional 830,393 shares during the period. Finally, Wedge Capital Management L L P NC acquired a new stake in Zoom Communications in the third quarter valued at about $63,357,000. Institutional investors and hedge funds own 66.54% of the company's stock.

About Zoom Communications

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.