Zoom Communications, Inc. (NASDAQ:ZM) Stock Has Consensus Target Price of $113.62

Shares of Zoom Communications, Inc. (NASDAQ:ZM) have been assigned an average rating of “Moderate Buy” from the twenty-five ratings firms that are presently covering the stock, MarketBeat reports. Eleven research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $113.62.

Several equities research analysts have commented on ZM shares. Royal Bank Of Canada reiterated an “outperform” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday, August 26th. Jefferies Financial Group cut their price objective on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research report on Wednesday, August 26th. BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a research note on Monday, August 24th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $108.00 price target on shares of Zoom Communications in a research note on Wednesday, August 26th. Finally, UBS Group increased their price target on Zoom Communications from $105.00 to $115.00 and gave the stock a “neutral” rating in a report on Thursday, August 20th.

Key Stories Impacting Zoom Communications

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: An analyst issued a new Buy recommendation for Zoom, adding potential support to investor sentiment. New Buy Recommendation for Zoom Communications
• Positive Sentiment: A valuation-focused comparison of Zoom Communications and ZoomInfo is keeping attention on ZM as a potential value stock. Zoom recently reported quarterly earnings and revenue above analyst expectations, while maintaining strong net margins. GTM or ZM: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Greater availability of free, fast Wi-Fi on commercial flights is enabling more people to use Zoom calls in the air. This could expand usage opportunities, although the article emphasizes passenger annoyance rather than a direct financial benefit for Zoom. The Latest Nuisance on Flights Is a Zoom Call at 30,000 Feet
• Negative Sentiment: CEO Eric Yuan sold 12,100 shares valued at approximately $1.13 million, reducing his reported ownership by 34.47%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, which makes it less concerning than an unscheduled discretionary sale, but it may still weigh modestly on sentiment. SEC Filing for Eric Yuan Share Sale
• Negative Sentiment: Director Santiago Subotovsky sold 2,637 shares for approximately $247,000, reducing his position by 2.12%. The transaction also followed a pre-arranged 10b5-1 plan, limiting its significance but adding to the day’s insider-selling headlines. SEC Filing for Santiago Subotovsky Share Sale

Insider Activity at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,644 shares of the stock in a transaction dated Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total transaction of $703,095.12. Following the completion of the transaction, the insider owned 148,403 shares of the company’s stock, valued at $13,650,107.94. This trade represents a 4.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of Zoom Communications stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the sale, the director owned 127,060 shares of the company’s stock, valued at approximately $12,874,989.80. This represents a 5.86% 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. Over the last ninety days, insiders sold 68,208 shares of company stock worth $6,525,597. 8.83% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Communications

Institutional investors have recently added to or reduced their stakes in the stock. Atreides Management LP purchased a new stake in Zoom Communications during the 1st quarter worth approximately $105,761,000. Rubric Capital Management LP acquired a new stake in Zoom Communications in the first quarter valued at $80,471,000. Bank of America Corp DE raised its position in shares of Zoom Communications by 50.5% during the 1st quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock worth $142,108,000 after acquiring an additional 592,899 shares in the last quarter. BlueCrest Capital Management Ltd purchased a new stake in shares of Zoom Communications during the 2nd quarter worth approximately $43,925,000. Finally, KBC Group NV boosted its holdings in shares of Zoom Communications by 69.1% in the 1st quarter. KBC Group NV now owns 1,193,027 shares of the company’s stock valued at $95,907,000 after buying an additional 487,384 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications Trading Up 0.6%

Shares of ZM stock opened at $94.77 on Friday. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74. The business’s 50 day moving average is $97.64 and its two-hundred day moving average is $93.71. The company has a market capitalization of $27.65 billion, a P/E ratio of 8.77, a P/E/G ratio of 4.35 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%.The business’s revenue was up 4.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.53 EPS. 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, research analysts predict that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ:ZM), formerly known as Zoom Video Communications, is a cloud-based communications and collaboration technology company. Its platform enables organizations and individuals to connect through video meetings, voice communications, messaging, webinars and other digital collaboration tools.

The company’s Zoom Workplace platform includes products such as Zoom Meetings, Zoom Phone, Team Chat, Whiteboard and Zoom Rooms. Zoom also provides Zoom Contact Center, Zoom Events and other tools designed to support customer engagement, employee collaboration and hybrid work.