Argus Upgrades Zoom Communications (NASDAQ:ZM) to “Hold”

Zoom Communications (NASDAQ:ZM) was upgraded by research analysts at Argus to a “hold” rating in a report released on Monday,Zacks.com reports.

Several other equities analysts also recently commented on ZM. Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and upped their price objective for the company from $94.00 to $106.00 in a research note on Monday, January 12th. Cantor Fitzgerald restated a “neutral” rating and set a $87.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Piper Sandler lifted their price target on shares of Zoom Communications from $85.00 to $91.00 and gave the company a “neutral” rating in a report on Monday, January 5th. Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Finally, Wolfe Research upgraded Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price on the stock in a report on Thursday, February 5th. Fourteen 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, Zoom Communications currently has an average rating of “Hold” and an average target price of $95.32.

Zoom Communications Trading Down 0.9%

Shares of ZM opened at $76.38 on Monday. The stock has a 50-day moving average price of $86.02 and a 200-day moving average price of $84.68. The company has a market cap of $22.62 billion, a PE ratio of 12.32, a price-to-earnings-growth ratio of 4.40 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 announced its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The company had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same quarter last year, the firm posted $1.41 earnings per share. The firm’s revenue was up 5.3% on a year-over-year basis. 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, analysts predict that Zoom Communications will post 2.93 earnings per share for the current year.

Insider Activity at Zoom Communications

In other news, Director Santiago Subotovsky sold 2,475 shares of the firm’s stock in a transaction 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 directly owned 153,442 shares in the company, valued at $11,879,479.64. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Eric S. Yuan sold 73,378 shares of the company’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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 180,494 shares of company stock worth $15,502,079 over the last quarter. 10.78% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Candriam S.C.A. boosted its stake in shares of Zoom Communications by 49.4% during the second quarter. Candriam S.C.A. now owns 16,560 shares of the company’s stock valued at $1,291,000 after purchasing an additional 5,477 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Zoom Communications by 10.5% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company’s stock worth $19,697,000 after acquiring an additional 22,704 shares in the last quarter. Strive Asset Management LLC purchased a new stake in shares of Zoom Communications during the 3rd quarter worth $1,238,000. LSV Asset Management lifted its stake in shares of Zoom Communications by 5.0% during the 3rd quarter. LSV Asset Management now owns 1,069,440 shares of the company’s stock worth $88,229,000 after purchasing an additional 50,579 shares during the last quarter. Finally, Catalyst Funds Management Pty Ltd purchased a new position in Zoom Communications in the second quarter valued at about $1,248,000. 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.