Zoom Communications (NASDAQ:ZM) Research Coverage Started at Bank of America

Bank of America started coverage on shares of Zoom Communications (NASDAQ:ZM) in a research report sent to investors on Wednesday morning. The brokerage issued a buy rating and a $130.00 price target on the stock.

A number of other research analysts have also commented on ZM. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 price objective on shares of Zoom Communications in a research report on Tuesday, June 30th. Needham & Company LLC restated a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research report on Thursday, July 2nd. Jefferies Financial Group upped their price target on Zoom Communications from $105.00 to $118.00 and gave the company a “buy” rating in a research note on Friday, May 22nd. Wells Fargo & Company raised their price target on Zoom Communications from $90.00 to $105.00 and gave the company an “equal weight” rating in a report on Friday, May 22nd. Finally, Piper Sandler lifted their price objective on Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research report on Friday, May 22nd. Sixteen investment analysts have rated the stock with a Buy rating and twelve 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 price target of $111.64.

Zoom Communications Price Performance

ZM opened at $107.43 on Wednesday. Zoom Communications has a one year low of $70.70 and a one year high of $114.74. The company’s 50 day simple moving average is $93.62 and its 200-day simple moving average is $91.13. The stock has a market capitalization of $31.50 billion, a P/E ratio of 15.78, a price-to-earnings-growth ratio of 5.61 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter last year, the business posted $1.43 earnings per share. Zoom Communications’s revenue for the quarter was up 5.5% compared to the same quarter last year. As a group, analysts anticipate that Zoom Communications will post 4.21 EPS for the current year.

Insider Activity

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer directly owned 35,452 shares in the company, valued at approximately $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 business’s stock in a transaction dated 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 directly owned 127,060 shares of the company’s stock, valued at approximately $12,874,989.80. The trade was a 5.86% decrease in their ownership of the stock. 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 have sold 56,155 shares of company stock worth $5,654,761 in the last 90 days. Corporate insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of hedge funds have recently modified their holdings of the business. Allianz Asset Management GmbH lifted its position in Zoom Communications by 15.6% in the 4th quarter. Allianz Asset Management GmbH now owns 2,112,815 shares of the company’s stock valued at $182,315,000 after acquiring an additional 285,626 shares in the last quarter. Hsbc Holdings PLC boosted its stake in Zoom Communications by 43.6% in the 4th quarter. Hsbc Holdings PLC now owns 422,470 shares of the company’s stock worth $36,460,000 after purchasing an additional 128,174 shares during the period. Sherry Group Inc. bought a new position in Zoom Communications during the 4th quarter worth about $894,000. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new position in Zoom Communications during the 4th quarter worth about $13,312,000. Finally, Geode Capital Management LLC raised its stake in shares of Zoom Communications by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company’s stock valued at $445,254,000 after purchasing an additional 152,862 shares during the period. Institutional investors and hedge funds own 66.54% of the company’s stock.

Key Zoom Communications News

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

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and assigned a $130 price target, implying meaningful upside from recent trading levels. Benzinga
• Positive Sentiment: Analysts expect Zoom’s enterprise business and AI-related product monetization to support second-quarter results. Bank of America also argues that the company’s post-pandemic reset may be nearing completion, supported by new products, improved customer retention and an underappreciated asset. Zacks earnings preview TheStreet Bank of America analysis
• Positive Sentiment: Zoom’s recent earnings momentum remains supportive: the company previously exceeded quarterly EPS and revenue expectations, while revenue grew year over year. The stock also outperformed the broader market in the latest referenced session. Yahoo Finance performance report
• Neutral Sentiment: Bank of America initiated coverage, adding a new institutional view that investors will assess alongside existing recommendations. American Banking News coverage
• Neutral Sentiment: Valuation signals are mixed: Zoom appears inexpensive relative to the market on earnings, roughly market-level on cash flow, but relatively expensive on sales. Technical and historical-market data are also being highlighted ahead of earnings. Trefis valuation analysis Barchart analysis
• Negative Sentiment: Key earnings risks include softness in Zoom’s online segment, customer churn and unfavorable currency effects. Investors are also focused on whether management’s guidance and operating metrics justify the already bullish analyst expectations. Yahoo Finance Q2 estimates

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.