Zoom Communications' (ZM) Buy Rating Reiterated at Needham & Company LLC

Key Points

• Needham & Company LLC has reiterated a "buy" rating for Zoom Communications (ZM) with a price target of $100, suggesting a potential upside of 36.67% from its previous close.
• Analysts have mixed ratings for Zoom, with one Strong Buy, nine Buy, sixteen Hold, and one Sell, resulting in an average price target of $88.30.
• Zoom's quarterly earnings results surpassed expectations, reporting $1.43 EPS versus the consensus estimate of $1.30, indicating a 2.9% year-over-year revenue growth.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "buy" rating restated by Needham & Company LLC in a research note issued to investors on Friday,Benzinga reports. They currently have a $100.00 price objective on the stock. Needham & Company LLC's price objective indicates a potential upside of 36.67% from the company's previous close.

Other analysts also recently issued research reports about the stock. Benchmark reiterated a "buy" rating and issued a $97.00 price objective on shares of Zoom Communications in a report on Tuesday, May 20th. Royal Bank Of Canada reissued an "outperform" rating and set a $95.00 price objective on shares of Zoom Communications in a research note on Thursday, May 22nd. Morgan Stanley boosted their price objective on Zoom Communications from $79.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Thursday, May 22nd. JPMorgan Chase & Co. boosted their price objective on Zoom Communications from $80.00 to $85.00 and gave the stock a "neutral" rating in a research note on Thursday, May 22nd. Finally, Rosenblatt Securities boosted their price objective on Zoom Communications from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications currently has an average rating of "Hold" and an average price target of $88.30.

Zoom Communications Price Performance

NASDAQ ZM opened at $73.17 on Friday. The company has a market cap of $22.14 billion, a PE ratio of 21.97, a price-to-earnings-growth ratio of 18.89 and a beta of 0.68. The stock's 50 day simple moving average is $74.96 and its 200-day simple moving average is $76.73. Zoom Communications has a 1-year low of $60.71 and a 1-year high of $92.80.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings data on Wednesday, May 21st. The company reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.30 by $0.13. The company had revenue of $1.17 billion during 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%. Zoom Communications's quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.35 EPS. On average, equities research analysts anticipate that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Velchamy Sankarlingam sold 7,661 shares of the company's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $77.50, for a total value of $593,727.50. Following the transaction, the insider owned 129,377 shares of the company's stock, valued at $10,026,717.50. This represents a 5.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Eric S. Yuan sold 33,691 shares of the company's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $74.79, for a total value of $2,519,749.89. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 87,542 shares of company stock worth $6,609,623. Corporate insiders own 11.51% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

Large investors have recently modified their holdings of the business. Wayfinding Financial LLC acquired a new position in shares of Zoom Communications in the 1st quarter valued at $25,000. SouthState Corp acquired a new position in shares of Zoom Communications in the 1st quarter valued at $25,000. Elevation Point Wealth Partners LLC acquired a new position in shares of Zoom Communications in the 2nd quarter valued at $27,000. MassMutual Private Wealth & Trust FSB lifted its stake in shares of Zoom Communications by 177.0% in 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 last quarter. Finally, REAP Financial Group LLC lifted its stake in shares of Zoom Communications by 181.7% in 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 last quarter. 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.

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