Zoom Communications' (ZM) Outperform Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an “outperform” rating on Zoom Communications and set a $130 price target, implying roughly 51% upside from the prior close.
• Other analysts have also been raising targets, with several firms increasing their price objectives after Zoom’s latest earnings; the stock now has a Moderate Buy consensus and an average target of $109.33.
• Zoom recently beat quarterly earnings and revenue estimates, reporting $1.55 EPS on $1.24 billion in revenue, while the shares traded around $85.94 in mid-day trading, down slightly on the day.

Zoom Communications (NASDAQ:ZM - Get Free Report)'s stock had its "outperform" rating restated by investment analysts at Royal Bank Of Canada in a research note issued on Tuesday,Benzinga reports. They currently have a $130.00 price target on the stock. Royal Bank Of Canada's price target would suggest a potential upside of 51.26% from the company's previous close.

ZM has been the topic of a number of other research reports. Cantor Fitzgerald boosted their target price on Zoom Communications from $87.00 to $104.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. Morgan Stanley raised their price target on Zoom Communications from $92.00 to $105.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Piper Sandler lifted their price objective on Zoom Communications from $91.00 to $107.00 and gave the company a "neutral" rating in a research note on Friday, May 22nd. Rosenblatt Securities boosted their price objective on Zoom Communications from $115.00 to $130.00 and gave the company a "buy" rating in a report on Friday, May 22nd. Finally, Jefferies Financial Group increased their target price on Zoom Communications from $105.00 to $118.00 and gave the stock a "buy" rating in a research note on Friday, May 22nd. Fifteen 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 a consensus price target of $109.33.

Zoom Communications Stock Down 0.2%

ZM stock traded down $0.20 during mid-day trading on Tuesday, hitting $85.94. 633,480 shares of the company were exchanged, compared to its average volume of 4,416,419. The firm has a market capitalization of $25.20 billion, a P/E ratio of 12.61, a PEG ratio of 4.77 and a beta of 1.01. The business has a fifty day simple moving average of $96.79 and a 200-day simple moving average of $88.85. Zoom Communications has a 12-month low of $69.15 and a 12-month high of $114.74.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the firm earned $1.43 EPS. The business's 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. Research analysts predict that Zoom Communications will post 4.09 EPS for the current year.

Insider Activity at Zoom Communications

In other news, 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 sale, the insider directly owned 141,971 shares of the company's stock, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 on Friday, April 17th. The stock was sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the transaction, the chief operating officer owned 1,978 shares of the company's stock, valued at approximately $173,312.36. The trade was a 86.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 156,638 shares of company stock worth $13,900,194 over the last ninety days. 8.83% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

Institutional investors have recently bought and sold shares of the business. Pacer Advisors Inc. boosted its position in shares of Zoom Communications by 10.8% during the 1st quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company's stock worth $208,680,000 after acquiring an additional 253,181 shares in the last quarter. Leigh Baldwin & CO. LLC raised its position in shares of Zoom Communications by 16.5% during the 1st quarter. Leigh Baldwin & CO. LLC now owns 5,732 shares of the company's stock worth $461,000 after acquiring an additional 810 shares in the last quarter. Bank of America Corp DE lifted its stake in Zoom Communications by 50.5% during the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company's stock worth $142,108,000 after purchasing an additional 592,899 shares during the last quarter. Edgestream Partners L.P. purchased a new stake in Zoom Communications during the first quarter worth approximately $2,689,000. Finally, Bull Harbor Capital LLC purchased a new stake in Zoom Communications during the first quarter worth approximately $939,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

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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