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

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reissued by investment analysts at Rosenblatt Securities in a report issued 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 29.67% from the stock’s current price.

Several other equities research analysts have also commented on the stock. Sanford C. Bernstein reissued a “market perform” rating and issued a $108.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. Oppenheimer raised shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price objective on the stock in a report on Wednesday. Needham & Company LLC reiterated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Jefferies Financial Group cut their target price on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Finally, Morgan Stanley upped their price target on shares of Zoom Communications from $105.00 to $107.00 and gave the stock an “equal weight” rating 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. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Price Performance

ZM stock traded up $2.80 during mid-day trading on Wednesday, reaching $100.26. 1,149,086 shares of the company’s stock were exchanged, compared to its average volume of 3,898,296. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74. The stock’s 50 day moving average is $96.88 and its 200 day moving average is $94.88. The company has a market cap of $29.25 billion, a price-to-earnings 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 earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the prior year, the company posted $1.53 EPS. The business’s quarterly revenue was up 4.9% on a year-over-year basis. 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 forecast that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Transactions at Zoom Communications

In related news, Director Herbert Raymond Mcmaster sold 3,000 shares of the stock in a transaction on Thursday, October 8th. The stock was sold at an average price of $94.71, for a total value of $284,130.00. Following the completion of the transaction, the director directly owned 8,479 shares of the company’s stock, valued at approximately $803,046.09. This represents a 26.13% decrease in their position. The transaction was disclosed in a document filed 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. Also, Director Santiago Subotovsky sold 7,911 shares of the firm’s 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 completion of the transaction, the director owned 127,060 shares in the company, valued at $12,874,989.80. The trade was a 5.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 71,209 shares of company stock worth $6,938,989 in the last quarter. 8.83% of the stock is owned by insiders.

Institutional Investors Weigh In On Zoom Communications

Hedge funds have recently modified their holdings of the business. Thurston Springer Miller Herd & Titak Inc. boosted its position in Zoom Communications by 133.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock worth $30,000 after acquiring an additional 200 shares during the last quarter. Rexford Capital Inc. raised its holdings in Zoom Communications by 45.7% in the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after acquiring an additional 122 shares during the last quarter. V Square Quantitative Management LLC raised its holdings in Zoom Communications by 100.4% in the 1st quarter. V Square Quantitative Management LLC now owns 505 shares of the company’s stock valued at $41,000 after acquiring an additional 253 shares during the last quarter. Strategic Investment Solutions Inc. IL lifted its stake in Zoom Communications by 400.0% in the 2nd quarter. Strategic Investment Solutions Inc. IL now owns 500 shares of the company’s stock worth $43,000 after purchasing an additional 400 shares in the last quarter. Finally, Elevation Wealth Partners LLC lifted its stake in Zoom Communications by 133.8% in the 3rd quarter. Elevation Wealth Partners LLC now owns 477 shares of the company’s stock worth $43,000 after purchasing an additional 273 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors and hedge funds.

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

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.