Brokerages Set Zoom Communications, Inc. (NASDAQ:ZM) Target Price at $112.55

Zoom Communications, Inc. (NASDAQ:ZM) has been given a consensus recommendation of “Moderate Buy” by the twenty-eight research firms that are covering the stock, Marketbeat reports. Twelve investment analysts have rated the stock with a hold recommendation and sixteen have given a buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $112.5455.

A number of equities analysts have recently issued reports on ZM shares. Robert W. Baird increased their price target on Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a report on Wednesday, August 26th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a research note on Friday, August 21st. Morgan Stanley upped their price objective on shares of Zoom Communications from $105.00 to $107.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 26th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and set a $104.00 target price on shares of Zoom Communications in a report on Monday, August 24th.

Insider Buying and Selling at Zoom Communications

In other news, CEO Eric Yuan sold 12,100 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $95.34, for a total transaction of $1,153,614.00. Following the transaction, the chief executive officer directly owned 22,998 shares in the company, valued at approximately $2,192,629.32. This trade represents a 34.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 2,590 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $95.81, for a total transaction of $248,147.90. Following the transaction, the insider owned 149,265 shares in the company, valued at approximately $14,301,079.65. This represents a 1.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Insiders sold a total of 56,108 shares of company stock worth $5,381,876 over the last quarter. 8.83% of the stock is currently owned by company insiders.

Institutional Trading of Zoom Communications

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. California State Teachers Retirement System grew its stake in shares of Zoom Communications by 8,620.6% during the 2nd quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock worth $2,761,908,000 after purchasing an additional 31,632,917 shares during the period. Norges Bank acquired a new position in shares of Zoom Communications in the 4th quarter valued at $509,788,000. Geode Capital Management LLC lifted its stake in shares of Zoom Communications by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company’s stock valued at $445,254,000 after purchasing an additional 152,862 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in Zoom Communications by 7.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,637,903 shares of the company’s stock worth $400,205,000 after buying an additional 341,104 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Zoom Communications by 4.6% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,767,681 shares of the company’s stock worth $238,823,000 after buying an additional 121,835 shares in the last quarter. Institutional investors own 66.54% of the company’s stock.

Zoom Communications Stock Performance

Zoom Communications stock opened at $95.36 on Tuesday. The company has a 50 day moving average price of $97.05 and a 200-day moving average price of $91.89. Zoom Communications has a fifty-two week low of $70.70 and a fifty-two week high of $114.74. The company has a market capitalization of $27.82 billion, a PE ratio of 8.83, a P/E/G ratio of 4.42 and a beta of 1.04.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.53 earnings per share. 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, analysts forecast that Zoom Communications will post 4.26 earnings per share for the current year.

About Zoom Communications

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based tools for video meetings, collaboration and business communications. The company was founded in 2011 by Eric Yuan and is headquartered in San Jose, California. It was previously known as Zoom Video Communications before adopting the Zoom Communications name.

Its product portfolio includes Zoom Meetings for video conferencing, Zoom Phone for cloud-based business telephony, Zoom Team Chat for workplace messaging, and Zoom Rooms for conference-room collaboration.