Zoom Communications (NASDAQ:ZM) Stock Rating Reaffirmed as Neutral by Cantor Fitzgerald

Zoom Communications (NASDAQ:ZM)‘s stock had its “neutral” rating restated by equities research analysts at Cantor Fitzgerald in a research note issued on Wednesday, Benzinga reports. They presently have a $104.00 price objective on the stock. Cantor Fitzgerald‘s price target indicates a potential upside of 3.20% from the company’s current price.

Several other research analysts have also weighed in on the stock. Bank of America started coverage on shares of Zoom Communications in a research note on Wednesday, August 19th. They set a “buy” rating and a $130.00 price objective on the stock. Weiss Ratings upgraded shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. BTIG Research restated a “buy” rating and set a $125.00 price objective on shares of Zoom Communications in a research note on Wednesday. Sanford C. Bernstein restated a “market perform” rating and set a $108.00 price objective on shares of Zoom Communications in a research note on Wednesday, August 26th. Finally, Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, Zoom Communications has an average rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Trading Up 3.4%

Shares of Zoom Communications stock traded up $3.31 during trading on Wednesday, hitting $100.77. 444,221 shares of the stock were exchanged, compared to its average volume of 3,895,194. The stock has a market capitalization of $29.40 billion, a price-to-earnings ratio of 9.29, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03. The company has a fifty day moving average price of $96.88 and a 200-day moving average price of $94.88. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share 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 analyst estimates of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. Zoom Communications’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period in the previous year, the business earned $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. Equities research analysts forecast that Zoom Communications will post 4.27 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Eric Yuan sold 12,100 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the transaction, the chief executive officer owned 22,998 shares in the company, valued at approximately $2,155,832.52. This represents a 34.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the company’s stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $94.71, for a total transaction of $284,130.00. Following the completion of the transaction, the director owned 8,479 shares in the company, valued at approximately $803,046.09. This trade represents a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 71,209 shares of company stock worth $6,938,989 in the last 90 days. Corporate insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Hsbc Holdings PLC grew its stake in Zoom Communications by 43.6% in the 4th quarter. Hsbc Holdings PLC now owns 422,470 shares of the company’s stock valued at $36,460,000 after buying an additional 128,174 shares during the last quarter. Tidal Investments LLC grew its stake in Zoom Communications by 251.2% in the 2nd quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock valued at $10,655,000 after buying an additional 88,303 shares during the last quarter. Bull Harbor Capital LLC acquired a new position in Zoom Communications in the 1st quarter valued at about $939,000. First Heartland Consultants Inc. acquired a new position in Zoom Communications in the 3rd quarter valued at about $1,870,000. Finally, Edgestream Partners L.P. acquired a new position in Zoom Communications in the 1st quarter valued at about $2,689,000. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications News Summary

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

• Positive Sentiment: Oppenheimer upgraded Zoom Communications (ZM) from “market perform” to “outperform” and set a $130 price target, citing a more constructive outlook for the stock.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $130 target, while BTIG Research maintained its “buy” rating and $125 target. The targets point to substantial potential appreciation from current levels.
• Positive Sentiment: At Zoomtopia, the company introduced a Unified Context Layer and additional AI-powered products intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools, and events. The initiatives support management’s effort to expand Zoom beyond video conferencing and create new revenue opportunities. Zoom AI strategy announcement
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, adding capabilities related to proof of human access for business customers. The partnership could strengthen Zoom’s ecosystem and address authentication needs as AI-generated content becomes more prevalent. Tools for Humanity partnership
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its “neutral” rating but increased or maintained its target at $104, suggesting limited upside relative to the more bullish analyst forecasts.
• Neutral Sentiment: Investor commentary is focusing on Zoom’s AI-first repositioning, cash-rich balance sheet, and potential to become a broader workplace platform. These arguments may support valuation, but execution and the company’s relatively modest growth remain important risks. Zoom investor session transcript

About Zoom Communications

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.