Zoom Communications (NASDAQ:ZM) Receives “Buy” Rating from Needham & Company LLC

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by stock analysts at Needham & Company LLC in a report released on Friday,Benzinga reports. They presently have a $100.00 price target on the stock. Needham & Company LLC’s target price suggests a potential upside of 33.55% from the company’s current price.

Several other equities research analysts have also recently weighed in on ZM. BTIG Research reduced their price target on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, February 26th. Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a report on Friday, February 13th. Argus raised Zoom Communications to a “hold” rating in a research report on Monday. Rosenblatt Securities reiterated a “buy” rating and set a $115.00 price target on shares of Zoom Communications in a report on Thursday, February 26th. Finally, Citigroup upgraded shares of Zoom Communications from a “neutral” rating to a “buy” rating and increased their price objective for the company from $94.00 to $106.00 in a research note on Monday, January 12th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $95.32.

Zoom Communications Stock Performance

Zoom Communications stock opened at $74.88 on Friday. Zoom Communications has a fifty-two week low of $64.41 and a fifty-two week high of $97.58. The firm has a market capitalization of $22.17 billion, a price-to-earnings ratio of 12.08, a price-to-earnings-growth ratio of 4.35 and a beta of 0.93. The stock’s fifty day moving average is $85.59 and its two-hundred day moving average is $84.55.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the company posted $1.41 earnings per share. 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. As a group, sell-side analysts forecast that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Buying and Selling at Zoom Communications

In related news, COO Aparna Bawa sold 12,137 shares of the company’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 value of $987,587.69. Following the sale, the chief operating officer owned 1,978 shares in the company, valued at $160,949.86. This represents a 85.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Eric S. Yuan sold 73,378 shares of the business’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $87.29, for a total transaction of $6,405,165.62. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 183,084 shares of company stock valued at $15,704,721. 11.51% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Kestra Advisory Services LLC raised its holdings in shares of Zoom Communications by 2.0% in the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock valued at $512,000 after acquiring an additional 116 shares in the last quarter. New York State Teachers Retirement System raised its holdings in Zoom Communications by 0.5% in the fourth quarter. New York State Teachers Retirement System now owns 24,263 shares of the company’s stock worth $2,094,000 after purchasing an additional 123 shares in the last quarter. Wynn Capital LLC grew its stake in shares of Zoom Communications by 1.3% during the 3rd quarter. Wynn Capital LLC now owns 10,429 shares of the company’s stock worth $860,000 after purchasing an additional 130 shares during the period. Root Financial Partners LLC lifted its position in shares of Zoom Communications by 33.5% in the fourth quarter. Root Financial Partners LLC now owns 542 shares of the company’s stock worth $47,000 after buying an additional 136 shares during the last quarter. Finally, MAI Capital Management boosted its stake in shares of Zoom Communications by 34.7% in the 3rd quarter. MAI Capital Management now owns 579 shares of the company’s stock valued at $48,000 after purchasing an additional 149 shares in the last quarter. Institutional investors own 66.54% of the company’s stock.

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.