Zoom Communications (NASDAQ:ZM) Shares Cross Above 200-Day Moving Average – Time to Sell?

Zoom Communications, Inc. (NASDAQ:ZM)’s share price crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $92.27 and traded as high as $98.22. Zoom Communications shares last traded at $98.08, with a volume of 4,428,492 shares trading hands.

Zoom Communications News Roundup

Here’s some of the latest news about ZM:

• Positive Sentiment: Zoom is investing in Medaica’s Telehealth 2.0 platform, which aims to bring integrated devices and AI-assisted clinical exams into homes and care facilities. The move could extend Zoom’s healthcare business beyond video visits. Zoom invests in Medaica for next generation of its telehealth platform
• Positive Sentiment: Zoom is also integrating Quiq’s AI capabilities with Zoom Contact Center and expanding support for AI startups. The broader push could strengthen its position in automated customer service and AI-driven enterprise workflows. Does AI And Telehealth Push Change The Bull Case For Zoom (ZM)?
• Negative Sentiment: A critical remote-code-execution vulnerability affected Zoom clients across macOS, Windows, iOS and Android. Zoom has issued updated software and security guidance, which mitigates the immediate issue, but the disclosure highlights cybersecurity risk. What Does Zoom Communications (ZM) Security Flaw Fix Mean For Customers?

Analysts Set New Price Targets

ZM has been the topic of a number of research reports. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $104.00 price target on shares of Zoom Communications in a report on Wednesday, October 21st. Morgan Stanley increased their price objective on Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. BTIG Research reissued a “buy” rating and issued a $125.00 target price on shares of Zoom Communications in a research report on Wednesday, October 21st. Rosenblatt Securities restated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, October 21st. Finally, UBS Group lowered their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 21st. Sixteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Performance

The stock’s 50 day moving average is $94.35 and its 200 day moving average is $92.28. The company has a market capitalization of $29.12 billion, a PE ratio of 9.24, a PEG ratio of 4.47 and a beta of 1.02.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share 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 during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the business earned $1.53 EPS. Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. 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, equities research analysts forecast that Zoom Communications, Inc. will post 4.16 EPS for the current fiscal year.

Insider Buying and Selling

In other 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 completion of the transaction, the insider directly owned 151,813 shares in the company, valued at approximately $15,068,958.38. This trade represents a 4.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Michelle Chang sold 10,156 shares of the business’s stock in a transaction that occurred on Wednesday, October 21st. The shares were sold at an average price of $101.93, for a total transaction of $1,035,201.08. Following the transaction, the chief financial officer directly owned 30,282 shares of the company’s stock, valued at approximately $3,086,644.26. This represents a 25.11% 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 sold 83,582 shares of company stock valued at $8,054,735 in the last three months. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. State Board of Administration of Florida Retirement System grew its position in Zoom Communications by 5.9% during the third quarter. State Board of Administration of Florida Retirement System now owns 241,250 shares of the company’s stock worth $21,898,000 after buying an additional 13,494 shares in the last quarter. Bleakley Financial Group LLC purchased a new stake in shares of Zoom Communications in the 3rd quarter valued at about $1,032,000. N.F.U. MUTUAL UNIT MANAGERS Ltd purchased a new position in shares of Zoom Communications during the third quarter worth about $2,129,000. First Trust Advisors LP grew its holdings in shares of Zoom Communications by 0.8% during the third quarter. First Trust Advisors LP now owns 1,326,659 shares of the company’s stock worth $120,421,000 after purchasing an additional 10,468 shares in the last quarter. Finally, Edmond DE Rothschild Holding S.A. increased its position in shares of Zoom Communications by 214.9% in the third quarter. Edmond DE Rothschild Holding S.A. now owns 7,481 shares of the company’s stock worth $679,000 after purchasing an additional 5,105 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Zoom Communications Company Profile

Zoom Communications provides cloud-based collaboration and communications software for businesses, organizations and individual users. Its products include Zoom Meetings for video conferencing, Zoom Team Chat, Zoom Phone, Zoom Rooms and tools for webinars and online events. The company also offers Zoom Contact Center and other services designed to support customer interactions and workplace collaboration. Founded in 2011 by Eric Yuan, Zoom became widely known for its video-conferencing service. The company, formerly known as Zoom Video Communications, adopted the name Zoom Communications in 2024 as it expanded its offerings beyond video meetings.