Royal Bank Of Canada Reaffirms “Outperform” Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reaffirmed by stock analysts at Royal Bank Of Canada in a research note issued to investors on Wednesday, Benzinga reports. They presently have a $130.00 price objective on the stock. Royal Bank Of Canada‘s target price would suggest a potential upside of 30.73% from the company’s current price.

A number of other research analysts have also issued reports on the stock. Rosenblatt Securities reissued a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Wednesday. UBS Group decreased their target price on shares of Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a research report on Wednesday. Weiss Ratings upgraded shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Morgan Stanley lifted their price target on Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. Finally, BTIG Research reiterated a “buy” rating and set a $125.00 price objective on shares of Zoom Communications in a research report on Wednesday. Sixteen investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Up 2.0%

NASDAQ ZM traded up $1.98 during trading hours on Wednesday, hitting $99.44. The company had a trading volume of 2,932,769 shares, compared to its average volume of 3,907,545. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The business has a fifty day simple moving average of $96.77 and a 200-day simple moving average of $95.00. The firm has a market cap of $29.02 billion, a P/E ratio of 9.21, 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 (EPS) 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 net margin of 65.19% and a return on equity of 10.86%. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.53 earnings per share. 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 analysts forecast that Zoom Communications will post 4.27 EPS for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the company’s stock in a transaction that occurred on 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 sale, the insider owned 151,813 shares in the company, valued at approximately $15,068,958.38. This represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Herbert Raymond Mcmaster sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, October 8th. The shares were sold at an average price of $94.71, for a total transaction of $284,130.00. Following the completion of the sale, the director owned 8,479 shares of the company’s stock, valued at approximately $803,046.09. This trade represents a 26.13% 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. Insiders have sold 71,209 shares of company stock valued at $6,938,989 over the last three months. 8.83% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

Hedge funds have recently modified their holdings of the business. Quadrant Capital Group LLC lifted its position in Zoom Communications by 2,161.0% in the 3rd quarter. Quadrant Capital Group LLC now owns 4,522 shares of the company’s stock worth $444,000 after buying an additional 4,322 shares in the last quarter. Nisa Investment Advisors LLC grew its holdings in shares of Zoom Communications by 29.1% during the 3rd quarter. Nisa Investment Advisors LLC now owns 10,484 shares of the company’s stock valued at $952,000 after acquiring an additional 2,364 shares in the last quarter. Bank Pictet & Cie Europe AG grew its holdings in shares of Zoom Communications by 5.9% during the 3rd quarter. Bank Pictet & Cie Europe AG now owns 7,177 shares of the company’s stock valued at $651,000 after acquiring an additional 403 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in shares of Zoom Communications by 0.4% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock worth $2,380,000 after acquiring an additional 107 shares during the last quarter. Finally, CWA Asset Management Group LLC raised its holdings in shares of Zoom Communications by 10.0% during the third quarter. CWA Asset Management Group LLC now owns 106,383 shares of the company’s stock worth $9,656,000 after acquiring an additional 9,698 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: AI platform expansion: Zoom introduced its Unified Context Layer and additional AI tools designed to convert meeting and customer-interaction data into completed work across Zoom Workplace, customer experience, developer tools, and events. The offerings support management’s strategy of broadening Zoom from a videoconferencing provider into an AI-focused business platform. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Oppenheimer upgrade: Oppenheimer raised Zoom to Outperform from Perform and set a $130 price target, citing strong traction and impressive potential for the company’s newer AI services. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Broadly favorable analyst view: RBC reaffirmed an Outperform rating with a $130 target, while Rosenblatt and BTIG maintained Buy ratings with $130 and $125 targets, respectively. The analysts’ optimism points to potential upside from enterprise adoption, new products, and revenue reacceleration. Zoom Communications revenue reacceleration supported by enterprise growth
• Positive Sentiment: Long-term growth strategy: At its investor session, Zoom outlined its AI initiatives, new revenue streams, and long-term financial targets, giving investors more visibility into how the company intends to monetize its broader platform. Zoom investor session transcript
• Neutral Sentiment: Remaining caution: Cantor Fitzgerald maintained a Neutral rating with a $104 target, suggesting that investors may require evidence that AI products translate into durable sales and faster growth. Zoom also faces execution and competitive risks as it shifts beyond its core meetings business. Cantor Fitzgerald maintains neutral rating on Zoom

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.