Zoom Communications (NASDAQ:ZM) Rating Lowered to Hold at Wall Street Zen

Zoom Communications (NASDAQ:ZM) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

A number of other analysts also recently weighed in on ZM. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research report on Tuesday, February 24th. Royal Bank Of Canada reissued an “outperform” rating and issued a $100.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Zacks Research downgraded Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Jefferies Financial Group boosted their target price on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Tuesday, November 25th. Finally, Piper Sandler increased their price target on Zoom Communications from $85.00 to $91.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Fourteen investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zoom Communications presently has an average rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Stock Up 0.2%

Shares of Zoom Communications stock opened at $77.50 on Friday. The business has a fifty day simple moving average of $86.41 and a 200 day simple moving average of $84.52. The stock has a market cap of $22.95 billion, a PE ratio of 12.50, a price-to-earnings-growth ratio of 4.41 and a beta of 0.93. Zoom Communications has a 12 month low of $64.41 and a 12 month high of $97.58.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same period in the previous year, the company posted $1.41 EPS. The company’s quarterly revenue was up 5.3% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. Analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 2,475 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $77.42, for a total transaction of $191,614.50. Following the completion of the transaction, the director owned 153,442 shares of the company’s stock, valued at $11,879,479.64. This represents a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Aparna Bawa sold 12,137 shares of the firm’s stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $81.37, for a total transaction of $987,587.69. Following the transaction, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at $160,949.86. This represents a 85.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 183,089 shares of company stock valued at $15,730,024 over the last ninety days. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC increased its stake in Zoom Communications by 16.8% in the 1st quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after buying an additional 1,153 shares during the last quarter. Intech Investment Management LLC boosted its stake in shares of Zoom Communications by 59.1% during the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after buying an additional 6,235 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in shares of Zoom Communications by 82.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after acquiring an additional 397 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of Zoom Communications in the 2nd quarter valued at about $217,000. Finally, Envestnet Asset Management Inc. increased its position in shares of Zoom Communications by 68.2% in the second quarter. Envestnet Asset Management Inc. now owns 49,370 shares of the company’s stock valued at $3,850,000 after acquiring an additional 20,017 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

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.