Zoom Communications (NASDAQ:ZM) Stock Keeps Buy Rating at Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by equities researchers at Rosenblatt Securities in a research note issued to investors on Wednesday, Benzinga reports. They presently have a $130.00 price objective on the stock. Rosenblatt Securities‘s price objective would suggest a potential upside of 29.20% from the company’s previous close.

Other equities analysts have also recently issued reports about the company. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $104.00 price objective on shares of Zoom Communications in a research report on Monday, August 24th. BTIG Research reaffirmed a “buy” rating and issued a $125.00 price objective on shares of Zoom Communications in a research report on Monday, August 24th. Bank of America initiated coverage on Zoom Communications in a research report on Wednesday, August 19th. They issued a “buy” rating and a $130.00 price objective on the stock. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $108.00 price objective on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Sixteen investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Stock Performance

Shares of ZM traded up $3.16 during mid-day trading on Wednesday, reaching $100.62. The company had a trading volume of 1,486,186 shares, compared to its average volume of 3,900,139. The firm has a 50-day moving average price of $96.88 and a 200 day moving average price of $94.88. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The company has a market capitalization of $29.36 billion, a price-to-earnings ratio of 9.32, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same period in the previous year, the firm posted $1.53 EPS. The business’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. As a group, research analysts forecast that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Velchamy Sankarlingam sold 7,645 shares of the stock in a transaction on Monday, October 12th. The stock was sold at an average price of $99.26, for a total transaction of $758,842.70. Following the transaction, the insider directly owned 151,813 shares of the company’s stock, valued at $15,068,958.38. This represents a 4.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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, Director Santiago Subotovsky sold 7,911 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total value of $801,621.63. Following the transaction, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 71,209 shares of company stock worth $6,938,989. Insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently modified their holdings of the company. Hsbc Holdings PLC lifted its holdings in shares of Zoom Communications by 43.6% during the 4th quarter. Hsbc Holdings PLC now owns 422,470 shares of the company’s stock valued at $36,460,000 after buying an additional 128,174 shares during the period. Tidal Investments LLC lifted its holdings in shares of Zoom Communications by 251.2% during the 2nd quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock valued at $10,655,000 after buying an additional 88,303 shares during the period. Bull Harbor Capital LLC bought a new position in shares of Zoom Communications during the 1st quarter valued at $939,000. First Heartland Consultants Inc. bought a new position in shares of Zoom Communications during the 3rd quarter valued at $1,870,000. Finally, Edgestream Partners L.P. bought a new position in shares of Zoom Communications during the 1st quarter valued at $2,689,000. 66.54% of the stock is owned by institutional investors.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: AI strategy gains momentum: Zoom introduced a Unified Context Layer and new AI capabilities designed to turn meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. The offerings support management’s effort to reposition Zoom as an AI-first business platform and create additional revenue opportunities. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Analyst upgrade: Oppenheimer upgraded Zoom from “market perform” to “outperform” and set a $130 price target, citing traction for the company’s newer AI services following the Zoomtopia event. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Support from other analysts: Royal Bank of Canada reaffirmed “outperform” with a $130 target; Rosenblatt maintained “buy” at $130; and BTIG maintained “buy” at $125. These targets imply substantial upside from recent trading levels.
• Positive Sentiment: Financial outlook: Zoom presented long-term financial targets, giving investors greater visibility into its growth and profitability plans as it expands beyond core videoconferencing.
• Neutral Sentiment: Strategic partnerships: Tools for Humanity joined Zoom’s ISV Exchange Program to provide proof-of-human access for business customers, potentially strengthening Zoom’s ecosystem as AI-generated activity becomes more prevalent. Tools for Humanity joins Zoom ISV Exchange Program
• Neutral Sentiment: Mixed analyst stance: Cantor Fitzgerald reaffirmed a “neutral” rating with a $104 target, indicating that some analysts view much of the near-term opportunity as already reflected in the stock.

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.