Zoom Communications (NASDAQ:ZM) Stock Keeps Outperform Rating at Royal Bank Of Canada

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reaffirmed by investment analysts at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $130.00 target price on the stock. Royal Bank Of Canada‘s price objective suggests a potential upside of 30.05% from the company’s current price.

Other equities research analysts have also recently issued research reports about the company. Rosenblatt Securities restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a report on Wednesday. Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Sanford C. Bernstein restated a “market perform” rating and set a $108.00 price objective on shares of Zoom Communications in a report on Wednesday, August 26th. Needham & Company LLC restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, Jefferies Financial Group reduced their price objective on Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $114.48.

Zoom Communications Stock Up 2.6%

Shares of ZM stock traded up $2.50 on Wednesday, reaching $99.96. The stock had a trading volume of 1,708,519 shares, compared to its average volume of 3,901,028. The firm’s 50-day moving average is $96.88 and its two-hundred day moving average is $94.88. The firm has a market capitalization of $29.17 billion, a price-to-earnings ratio of 9.27, a P/E/G 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 announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same quarter in the prior year, the business earned $1.53 EPS. Zoom Communications’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, sell-side analysts forecast that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Transactions at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of the firm’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 sale, the insider owned 151,813 shares in the company, valued at $15,068,958.38. This trade represents a 4.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at 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, CEO Eric Yuan sold 12,100 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the completion of the sale, the chief executive officer owned 22,998 shares in the company, valued at $2,155,832.52. This represents a 34.47% 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. Over the last three months, insiders have sold 71,209 shares of company stock valued at $6,938,989. Corporate insiders own 8.83% of the company’s stock.

Institutional Trading of Zoom Communications

A number of hedge funds have recently added to or reduced their stakes in the stock. Thurston Springer Miller Herd & Titak Inc. raised its stake 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 buying an additional 200 shares during the last quarter. Rexford Capital Inc. raised its stake in Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after buying an additional 122 shares during the last quarter. Elevation Wealth Partners LLC raised its stake in Zoom Communications by 133.8% during the third quarter. Elevation Wealth Partners LLC now owns 477 shares of the company’s stock worth $43,000 after buying an additional 273 shares during the last quarter. Strategic Investment Solutions Inc. IL raised its stake in Zoom Communications by 400.0% during the second quarter. Strategic Investment Solutions Inc. IL now owns 500 shares of the company’s stock worth $43,000 after buying an additional 400 shares during the last quarter. Finally, V Square Quantitative Management LLC raised its stake in Zoom Communications by 100.4% during the first quarter. V Square Quantitative Management LLC now owns 505 shares of the company’s stock worth $41,000 after buying an additional 253 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications News Roundup

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.

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.