Zoom Communications’ (ZM) “Buy” Rating Reaffirmed at Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating restated by analysts at Rosenblatt Securities in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $130.00 price target on the stock. Rosenblatt Securities‘s price objective would indicate a potential upside of 30.73% from the company’s current price.

Several other analysts have also issued reports on ZM. Royal Bank Of Canada reissued an “outperform” rating and set a $130.00 target price on shares of Zoom Communications in a report on Wednesday, August 26th. Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a report on Wednesday, August 26th. Bank of America assumed coverage on Zoom Communications in a report on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price on the stock. Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Finally, KeyCorp restated a “sector weight” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Stock Up 2.0%

Shares of ZM traded up $1.98 during trading hours on Wednesday, hitting $99.44. 2,930,914 shares of the company were exchanged, compared to its average volume of 3,907,534. The company has a market cap of $29.02 billion, a price-to-earnings ratio of 9.21, a P/E/G ratio of 4.51 and a beta of 1.03. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The firm’s fifty day moving average is $96.88 and its 200 day moving average is $94.88.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. Zoom Communications’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the prior year, the firm 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. Analysts anticipate that Zoom Communications will post 4.27 EPS for the current year.

Insider Activity at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,645 shares of the company’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.26, for a total transaction of $758,842.70. Following the completion of the transaction, the insider directly owned 151,813 shares of the company’s stock, valued at approximately $15,068,958.38. This represents a 4.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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. Also, CEO Eric Yuan sold 12,100 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the transaction, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at approximately $2,155,832.52. This trade 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. Insiders sold a total of 71,209 shares of company stock worth $6,938,989 in the last three months. 8.83% of the stock is owned by insiders.

Institutional Investors Weigh In On Zoom Communications

Institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC lifted its position in Zoom Communications by 43.6% during the fourth quarter. Hsbc Holdings PLC now owns 422,470 shares of the company’s stock valued at $36,460,000 after purchasing an additional 128,174 shares during the period. Tidal Investments LLC increased its stake in shares of Zoom Communications by 251.2% in the second quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock worth $10,655,000 after purchasing an additional 88,303 shares in the last quarter. Bull Harbor Capital LLC purchased a new stake in shares of Zoom Communications in the first quarter worth $939,000. First Heartland Consultants Inc. purchased a new stake in shares of Zoom Communications in the third quarter worth $1,870,000. Finally, Edgestream Partners L.P. purchased a new position in Zoom Communications during the first quarter valued at $2,689,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

More Zoom Communications News

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

• Positive Sentiment: Oppenheimer upgraded Zoom to Outperform from Perform and set a $130 price target, citing strong traction for the company’s newer AI services. The analyst said the products could help Zoom evolve from a video-conferencing provider into a broader workplace platform. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: At Zoomtopia, Zoom introduced a Unified Context Layer and additional AI tools intended to convert meeting and customer interactions into completed work across Zoom Workplace, customer experience, developer tools and events. The launches support management’s strategy of building an AI-first business and creating new revenue streams. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Royal Bank of Canada reaffirmed its Outperform rating and raised or maintained a $130 price target, saying revenue reacceleration is being supported by enterprise growth. Rosenblatt and BTIG also reiterated Buy ratings with $130 and $125 targets, respectively. Zoom’s Revenue Reacceleration Supported by Enterprise Growth
• Positive Sentiment: Management’s newly disclosed long-term financial targets, combined with the AI announcements, are reinforcing the view that Zoom can expand beyond meetings and improve growth over time. The company’s prior quarterly results also showed revenue growth and earnings above analyst expectations.
• Neutral Sentiment: Cantor Fitzgerald reaffirmed a Neutral rating with a $104 price target, indicating that some analysts see more limited near-term upside despite the favorable AI and enterprise-growth narrative.

About Zoom Communications

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.