Zoom Communications (NASDAQ:ZM) Earns Outperform Rating from Royal Bank Of Canada

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reaffirmed by research analysts at Royal Bank Of Canada in a report released on Wednesday, Benzinga reports. They presently have a $130.00 price target on the stock. Royal Bank Of Canada‘s price target would suggest a potential upside of 29.70% from the company’s previous close.

ZM has been the topic of several other reports. Needham & Company LLC reissued a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, August 26th. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Jefferies Financial Group dropped their price objective on Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Oppenheimer upgraded Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price objective on the stock in a research report on Wednesday. Finally, KeyCorp restated a “sector weight” rating on shares of Zoom Communications in a report on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, Zoom Communications presently has an average rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Stock Performance

Shares of NASDAQ ZM traded up $2.78 during mid-day trading on Wednesday, hitting $100.24. The stock had a trading volume of 1,098,229 shares, compared to its average volume of 3,898,296. The business has a 50 day moving average price of $96.88 and a two-hundred day moving average price of $94.88. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The firm has a market cap of $29.25 billion, a P/E ratio of 9.28, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last announced its quarterly 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. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the prior year, the company posted $1.53 EPS. The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. 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. Equities research analysts predict that Zoom Communications will post 4.27 EPS for the current fiscal year.

Insider Activity

In related news, Director Santiago Subotovsky sold 7,911 shares of Zoom Communications stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the sale, the director directly owned 127,060 shares in the company, valued at $12,874,989.80. The trade was a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric Yuan sold 12,100 shares of Zoom Communications stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the sale, the chief executive officer owned 22,998 shares in the company, valued at $2,155,832.52. This represents a 34.47% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 71,209 shares of company stock worth $6,938,989. Company insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Institutional investors have recently added to or reduced their stakes in the company. Pacer Advisors Inc. raised its holdings in shares of Zoom Communications by 10.8% during 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 last quarter. Dimensional Fund Advisors LP lifted its position in Zoom Communications by 4.2% during 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 lifted its position 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 valued at $142,108,000 after purchasing an additional 592,899 shares during the period. Bank of New York Mellon Corp boosted its holdings in 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 worth $113,490,000 after purchasing an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP boosted its holdings in Zoom Communications by 2.8% in the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock worth $109,531,000 after purchasing an additional 36,657 shares during the last quarter. 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 to Outperform from Market Perform and set a $130 price target, citing traction for the company’s newer AI services after reviewing its Zoomtopia strategy. The target implies roughly 30% upside from recent trading levels. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Several other firms maintained bullish views: Royal Bank of Canada reaffirmed an Outperform rating with a $130 target, Rosenblatt reiterated Buy with a $130 target, and BTIG maintained Buy with a $125 target. The concentration of targets above the current share price supports the positive sentiment.
• Positive Sentiment: At Zoomtopia, Zoom introduced a Unified Context Layer and additional AI capabilities intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. Investors may view these offerings as potential sources of new revenue and improved customer retention. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, expanding potential business use cases involving proof-of-human access as companies adopt AI tools. Tools for Humanity joins Zoom ISV Exchange Program

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.