Zoom Communications, Inc. (NASDAQ:ZM) Receives Average Rating of “Hold” from Analysts

Zoom Communications, Inc. (NASDAQ:ZM) has received a consensus rating of “Hold” from the twenty-eight brokerages that are presently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and fourteen have issued a buy rating on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $95.3182.

A number of equities research analysts have commented on ZM shares. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective on shares of Zoom Communications in a research note on Friday, March 13th. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a report on Tuesday, February 24th. Argus upgraded Zoom Communications to a “hold” rating in a report on Monday, March 9th. Wall Street Zen lowered Zoom Communications from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Finally, Zacks Research lowered Zoom Communications from a “strong-buy” rating to a “hold” rating in a report on Friday, February 13th.

Zoom Communications Price Performance

NASDAQ ZM opened at $109.10 on Wednesday. The business has a 50 day simple moving average of $82.44 and a 200 day simple moving average of $84.99. Zoom Communications has a one year low of $69.15 and a one year high of $109.50. The stock has a market capitalization of $32.15 billion, a P/E ratio of 17.60, a P/E/G ratio of 6.10 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last released its 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). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period in the prior year, the business earned $1.41 EPS. The company’s revenue for the quarter 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. Equities analysts expect that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of the business’s stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total value of $653,188.80. Following the sale, the insider directly owned 141,971 shares in the company, valued at $12,130,002.24. The trade was a 5.11% 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, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction on Friday, April 10th. The shares were sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the sale, the chief financial officer owned 30,467 shares in the company, valued at approximately $2,477,576.44. The trade was a 21.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 134,704 shares of company stock valued at $11,298,844. 10.78% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Zoom Communications by 4.0% in the fourth 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. AQR Capital Management LLC grew its position in shares of Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after purchasing an additional 3,718,186 shares in the last quarter. State Street Corp grew its position in shares of Zoom Communications by 5.0% in the fourth quarter. State Street Corp now owns 7,582,924 shares of the company’s stock valued at $654,331,000 after purchasing an additional 363,776 shares in the last quarter. Norges Bank purchased a new position in shares of Zoom Communications in the fourth quarter valued at $509,788,000. Finally, Geode Capital Management LLC grew its position in shares of Zoom Communications by 3.1% in the fourth 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 in the last quarter. 66.54% of the stock is currently owned by institutional investors.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Zoom named Russell Dicker as Chief Product Officer, strengthening product leadership and signaling execution focus on roadmap and AI-driven offerings. Zoom Appoints Russell Dicker as Chief Product Officer
• Positive Sentiment: Technical momentum: ZM cleared a cup‑with‑handle breakout and IBD upgraded its Relative Strength score into the 80s, which can attract momentum and retail/technical buyers. Zoom Stock Soars After Cup With Handle Breakout; Rating Upgraded
• Positive Sentiment: Product/market positioning: Zoom launched the “Solopreneur 50” program and released research on AI‑powered solo businesses — a signal management is targeting new addressable markets (AI-enabled SMB/creator workflows). This supports longer-term revenue diversification beyond meetings. Zoom Solopreneur 50
• Positive Sentiment: Investor research suggests Zoom is transitioning from SMB to larger enterprise deals, which could support higher-quality revenue and margin stability if execution continues. Zoom: The Transition To Large Enterprise
• Neutral Sentiment: Relative valuation and peer comparisons: Several outlets published side‑by‑side analyses (Five9 vs Zoom) for value investors — useful for allocation decisions but not an immediate catalyst. FIVN or ZM: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Analyst/idea lists: Coverage noting Zoom as a beaten‑down tech name that could rebound may support medium‑term interest but represents opinion rather than fresh fundamental proof. 3 Beaten-Down Tech Stocks That Could Soar
• Negative Sentiment: Sector/headwind risk: Prominent market voices and commentary note a rotation out of high‑beta cloud/software names amid rate and geopolitical uncertainty — a persistent headwind that can cap multiple expansion for ZM. Josh Brown now has just one software name in his ‘best stocks’ list

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.