Rosenblatt Securities Reaffirms “Buy” Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $130.00 price target on the stock. Rosenblatt Securities‘s price objective would suggest a potential upside of 33.39% from the company’s current price.

Several other research firms also recently weighed in on ZM. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. BTIG Research reaffirmed a “buy” rating and issued a $125.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. UBS Group reaffirmed a “neutral” rating and issued a $112.00 target price on shares of Zoom Communications in a research report on Wednesday. Citizens Jmp reaffirmed a “market perform” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, Zoom Communications presently has a consensus rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Trading Down 0.1%

Shares of NASDAQ:ZM opened at $97.46 on Wednesday. The business has a 50-day moving average price of $96.88 and a 200 day moving average price of $94.88. The company has a market capitalization of $28.44 billion, a price-to-earnings ratio of 9.02, a PEG ratio of 4.51 and a beta of 1.03. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. During the same period in the previous year, the company posted $1.53 EPS. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. As a group, equities research analysts predict that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Herbert Raymond Mcmaster sold 3,000 shares of Zoom Communications stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $94.71, for a total value of $284,130.00. Following the completion of the transaction, the director owned 8,479 shares in the company, valued at approximately $803,046.09. This trade represents a 26.13% decrease in their position. 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, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.26, for a total value of $758,842.70. Following the completion of the transaction, the insider owned 151,813 shares of the company’s stock, valued at $15,068,958.38. The trade was a 4.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 71,209 shares of company stock worth $6,938,989. Corporate insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Several institutional investors have recently added to or reduced their stakes in the business. Pacer Advisors Inc. increased its holdings in shares of Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after purchasing an additional 253,181 shares during the period. Dimensional Fund Advisors LP increased its holdings in shares of Zoom Communications by 4.2% in the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after purchasing an additional 94,043 shares during the period. Bank of America Corp DE increased its holdings in shares of Zoom Communications by 50.5% in the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after purchasing an additional 592,899 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Zoom Communications by 44.5% in the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after purchasing an additional 434,981 shares during the period. Finally, First Trust Advisors LP increased its holdings in shares of Zoom Communications by 2.8% in the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after purchasing an additional 36,657 shares during the period. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications News Roundup

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Oppenheimer upgraded Zoom Communications (ZM) from “market perform” to “outperform” and set a $130 price target, citing a more constructive outlook for the stock.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $130 target, while BTIG Research maintained its “buy” rating and $125 target. The targets point to substantial potential appreciation from current levels.
• Positive Sentiment: At Zoomtopia, the company introduced a Unified Context Layer and additional AI-powered products intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools, and events. The initiatives support management’s effort to expand Zoom beyond video conferencing and create new revenue opportunities. Zoom AI strategy announcement
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, adding capabilities related to proof of human access for business customers. The partnership could strengthen Zoom’s ecosystem and address authentication needs as AI-generated content becomes more prevalent. Tools for Humanity partnership
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its “neutral” rating but increased or maintained its target at $104, suggesting limited upside relative to the more bullish analyst forecasts.
• Neutral Sentiment: Investor commentary is focusing on Zoom’s AI-first repositioning, cash-rich balance sheet, and potential to become a broader workplace platform. These arguments may support valuation, but execution and the company’s relatively modest growth remain important risks. Zoom investor session transcript

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.