Zoom Communications (NASDAQ:ZM) Receives Sector Weight Rating from KeyCorp

Zoom Communications (NASDAQ:ZM)‘s stock had its “sector weight” rating reiterated by KeyCorp in a research note issued on Wednesday,Benzinga reports.

Several other brokerages also recently weighed in on ZM. Mizuho upped their target price on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. HSBC boosted their target price on Zoom Communications from $107.00 to $133.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Jefferies Financial Group reaffirmed a “buy” rating and issued a $116.00 price target on shares of Zoom Communications in a research report on Wednesday. Morgan Stanley boosted their price objective on Zoom Communications from $92.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Friday, May 22nd. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 price target on shares of Zoom Communications in a research note on Tuesday, June 30th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, Zoom Communications presently has a consensus rating of “Moderate Buy” and a consensus target price of $111.55.

Zoom Communications Price Performance

Shares of ZM opened at $100.92 on Wednesday. The firm has a 50-day simple moving average of $94.00 and a two-hundred day simple moving average of $91.30. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74. The stock has a market cap of $29.59 billion, a PE ratio of 14.82, a P/E/G ratio of 5.53 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same quarter last year, the firm earned $1.53 EPS. The firm’s revenue for the quarter 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. As a group, sell-side analysts expect that Zoom Communications will post 4.21 earnings per share for the current fiscal year.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $90.80, for a total value of $770,801.20. Following the completion of the sale, the chief financial officer directly owned 35,452 shares of the company’s stock, valued at approximately $3,219,041.60. The trade was a 19.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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, insider Velchamy Sankarlingam sold 7,644 shares of the firm’s stock in a transaction that occurred on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total value of $703,095.12. Following the transaction, the insider owned 148,403 shares in the company, valued at $13,650,107.94. This represents a 4.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 56,155 shares of company stock worth $5,654,761 over the last three months. 8.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System grew its holdings in shares of Zoom Communications by 8,620.6% during the second quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock worth $2,761,908,000 after buying an additional 31,632,917 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Zoom Communications by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after purchasing an additional 1,029,623 shares during the period. AQR Capital Management LLC raised its stake in shares of Zoom Communications by 43.9% during the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock worth $1,052,328,000 after purchasing an additional 3,718,186 shares during the last quarter. State Street Corp lifted its holdings in shares of Zoom Communications by 5.0% during the fourth quarter. State Street Corp now owns 7,582,924 shares of the company’s stock worth $654,331,000 after purchasing an additional 363,776 shares during the period. Finally, Norges Bank purchased a new position in Zoom Communications in the 4th quarter valued at $509,788,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

About Zoom Communications

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.