Zoom Communications’ (ZM) Buy Rating Reiterated at Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating restated by equities researchers at Rosenblatt Securities in a research report issued on Wednesday, Benzinga reports. They presently have a $130.00 price target on the stock. Rosenblatt Securities‘s price objective suggests a potential upside of 30.18% from the stock’s current price.

A number of other equities analysts also recently issued reports on ZM. KeyCorp reissued a “sector weight” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Cantor Fitzgerald reissued a “neutral” rating and set a $104.00 price target on shares of Zoom Communications in a research report on Monday, August 24th. Sanford C. Bernstein reissued a “market perform” rating and set a $108.00 price target on shares of Zoom Communications in a research report on Wednesday, August 26th. UBS Group restated a “neutral” rating and set a $112.00 price objective (down from $115.00) on shares of Zoom Communications in a report on Wednesday. Finally, Jefferies Financial Group reduced their target price on Zoom Communications from $118.00 to $116.00 and set a “buy” rating on the stock in a report on Wednesday, August 26th. Sixteen 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, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Up 2.5%

ZM traded up $2.40 on Wednesday, hitting $99.86. 1,725,160 shares of the company traded hands, compared to its average volume of 3,901,028. The company has a 50 day moving average of $96.88 and a 200-day moving average of $94.88. The stock has a market capitalization of $29.14 billion, a PE ratio of 9.25, 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 posted its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.48 by $0.07. The firm 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%. The firm’s revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the business earned $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. On average, research analysts anticipate that Zoom Communications will post 4.27 EPS for the current year.

Insider Buying and Selling

In other Zoom Communications news, Director Santiago Subotovsky sold 7,911 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was 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 of the company’s stock, valued at $12,874,989.80. This trade represents 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, CFO Michelle Chang sold 8,489 shares of the firm’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.46, for a total value of $844,315.94. Following the completion of the transaction, the chief financial officer directly owned 40,438 shares in the company, valued at $4,021,963.48. This trade represents a 17.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 71,209 shares of company stock valued at $6,938,989 over the last ninety days. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC raised its position in Zoom Communications by 43.6% in 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 raised its position in Zoom Communications by 251.2% in the second quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock valued at $10,655,000 after purchasing an additional 88,303 shares during the period. Bull Harbor Capital LLC purchased a new position in Zoom Communications in the first quarter valued at about $939,000. First Heartland Consultants Inc. purchased a new position in Zoom Communications in the third quarter valued at about $1,870,000. Finally, Edgestream Partners L.P. purchased a new position in Zoom Communications in the first quarter valued at about $2,689,000. 66.54% of the stock is owned by hedge funds and other 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.

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.