Zoom Communications (NASDAQ:ZM) Reaches New 12-Month High – Time to Buy?

Zoom Communications, Inc. (NASDAQ:ZM) reached a new 52-week high during trading on Tuesday . The stock traded as high as $111.56 and last traded at $107.12, with a volume of 4107053 shares trading hands. The stock had previously closed at $109.21.

Analyst Ratings Changes

Several research analysts have recently commented on the stock. KeyCorp raised their price objective on shares of Zoom Communications from $69.00 to $74.00 and gave the company an “underweight” rating in a research note on Thursday, February 26th. BTIG Research lowered their price objective on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Rosenblatt Securities reissued a “buy” rating and issued a $115.00 price objective on shares of Zoom Communications in a research note on Thursday, February 26th. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price objective for the company in a research note on Thursday, February 5th. Finally, Sanford C. Bernstein lowered their price objective on shares of Zoom Communications from $90.00 to $88.00 and set a “market perform” rating for the company in a research note on Thursday, February 26th. Fourteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Zoom Communications has an average rating of “Hold” and a consensus price target of $95.32.

Zoom Communications Stock Performance

The firm has a market cap of $30.18 billion, a PE ratio of 16.52, a P/E/G ratio of 5.89 and a beta of 1.00. The firm’s 50-day moving average price is $85.52 and its two-hundred day moving average price is $86.01.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings data 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). The company had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.23 billion. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.41 EPS. 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 predict that Zoom Communications, Inc. will post 3.94 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Eric S. Yuan sold 69,923 shares of Zoom Communications stock in a transaction on Monday, April 13th. The shares were sold at an average price of $81.22, for a total value of $5,679,146.06. Following the transaction, the chief executive officer directly owned 36,796 shares of the company’s stock, valued at $2,988,571.12. The trade was a 65.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of Zoom Communications stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total transaction of $690,325.48. Following the completion of the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at $2,477,576.44. The trade was a 21.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders sold 144,329 shares of company stock worth $12,364,989. Corporate insiders own 11.51% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Institutional investors have recently modified their holdings of the business. Norges Bank acquired a new position in Zoom Communications in the 4th quarter valued at $509,788,000. AQR Capital Management LLC increased its stake in Zoom Communications by 43.9% in the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after buying an additional 3,718,186 shares during the period. Two Sigma Investments LP acquired a new position in Zoom Communications in the 3rd quarter valued at $86,709,000. Vanguard Group Inc. increased its stake in Zoom Communications by 4.0% in the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after buying an additional 1,029,623 shares during the period. Finally, Arrowstreet Capital Limited Partnership increased its stake in Zoom Communications by 46.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,645,846 shares of the company’s stock valued at $218,282,000 after buying an additional 836,594 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

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.