Zoom Communications (NASDAQ:ZM) Hits New 12-Month High – Still a Buy?

Zoom Communications, Inc. (NASDAQ:ZM)’s share price reached a new 52-week high during trading on Thursday . The company traded as high as $97.63 and last traded at $97.3930, with a volume of 2416615 shares. The stock had previously closed at $95.76.

Zoom Communications News Summary

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

• Positive Sentiment: Renewed focus on Zoom’s Anthropic stake — analysts (Baird cited in market coverage) argue Zoom’s 2023 ~$51M investment could be worth roughly $2–$4B today under certain dilution assumptions, which would represent meaningful latent asset value relative to Zoom’s market cap; Anthropic’s growth updates and infrastructure partnerships boost that re‑valuation narrative. Zoom shares climb as investors revisit potential value of its Anthropic stake
• Positive Sentiment: Large buyback/cash optionality — Zoom reported a roughly $7.8B cash and marketable securities position (as of Jan 31, 2026) and has executed sizable repurchases in FY26 with remaining authorization, which can amplify upside when sentiment turns positive. Zoom shares climb as investors revisit potential value of its Anthropic stake
• Positive Sentiment: Unusually heavy call buying — traders purchased ~23,600 call options (up ~41% vs. typical volume), signaling speculative bullish positioning by options traders that can accelerate intraday moves.
• Neutral Sentiment: Upcoming Q1 FY27 results scheduled for May 21 after the close — the print and management commentary, plus any updated guidance, could either reinforce the current move or reverse it depending on execution and commentary on AI/enterprise demand. Zoom to Release Financial Results for the First Quarter of Fiscal Year 2027
• Neutral Sentiment: Marketing push around LLM differentiation — WSJ reports Zoom has a ‘SWAT team’ to position itself versus ChatGPT/Gemini; this is operational/branding news that supports long‑term product positioning but is not an immediate earnings catalyst. Zoom Has a ‘SWAT Team’ to Stand Out on ChatGPT and Gemini
• Neutral Sentiment: Coverage highlighting Anthropic early investors — broader media pieces (e.g., The Motley Fool) listing early Anthropic backers add context and may sustain investor interest in any Anthropic-related re‑rating. Want in on AI Superstar Anthropic Before Its IPO? These 4 Companies Are Some of Its Earliest Investors.
• Negative Sentiment: Heavy insider selling — data show 89 insider sales and zero purchases in the past six months (including large sales by CEO Eric Yuan), which can dampen investor confidence and serve as a counterweight to valuation re‑rating. Zoom shares climb as investors revisit potential value of its Anthropic stake
• Negative Sentiment: Analyst price targets and mixed institutional flows — median recent target (~$97.5) sits below current levels for some firms, and institutions showed both large buys and sizable reductions in Q4 2025, suggesting divergent views that could limit sustained upside without fresh fundamental beats. Zoom shares climb as investors revisit potential value of its Anthropic stake

Wall Street Analyst Weigh In

ZM has been the topic of a number of analyst reports. Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $94.00 to $106.00 in a research note on Monday, January 12th. Zacks Research lowered Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. KeyCorp raised their price objective on Zoom Communications from $69.00 to $74.00 and gave the company an “underweight” rating in a report on Thursday, February 26th. Wall Street Zen cut shares of Zoom Communications from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Finally, Benchmark dropped their target price on shares of Zoom Communications from $115.00 to $110.00 and set a “buy” rating for the company in a report on Tuesday, February 24th. Fourteen equities 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, Zoom Communications has an average rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Price Performance

The stock has a 50 day simple moving average of $82.06 and a two-hundred day simple moving average of $84.70. The company has a market cap of $30.48 billion, a price-to-earnings ratio of 16.68, a price-to-earnings-growth ratio of 5.56 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $1.44 EPS 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 revenue was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $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, research analysts forecast that Zoom Communications, Inc. will post 3.94 EPS for the current year.

Insider Activity at Zoom Communications

In other news, COO Aparna Bawa sold 12,886 shares of Zoom Communications stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the sale, the chief operating officer owned 1,978 shares of the company’s stock, valued at approximately $173,312.36. The trade was a 86.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the company’s stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $85.44, for a total value of $653,188.80. Following the completion of the transaction, the insider owned 141,971 shares in the company, valued at $12,130,002.24. This represents a 5.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 138,887 shares of company stock valued at $11,590,330 over the last ninety days. Corporate insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Advocate Investing Services LLC purchased a new position in shares of Zoom Communications during the 4th quarter worth $26,000. Strive Financial Group LLC purchased a new stake in Zoom Communications in the 4th quarter valued at about $27,000. Toth Financial Advisory Corp acquired a new position in Zoom Communications in the fourth quarter valued at about $28,000. Rexford Capital Inc. lifted its position in Zoom Communications by 45.7% in the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after buying an additional 122 shares during the last quarter. Finally, Root Financial Partners LLC purchased a new position in Zoom Communications during the third quarter worth about $33,000. Hedge funds and other 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.