Zoom Communications’ (ZM) “Sector Weight” Rating Reiterated at KeyCorp

Zoom Communications (NASDAQ:ZM)‘s stock had its “sector weight” rating reissued by equities researchers at KeyCorp in a report issued on Wednesday,Benzinga reports.

Several other research analysts also recently issued reports on ZM. BTIG Research restated a “buy” rating and set a $125.00 price objective on shares of Zoom Communications in a research report on Monday. Needham & Company LLC restated a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a research report on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating and set a $116.00 price objective on shares of Zoom Communications in a research note on Wednesday. Weiss Ratings cut Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, August 14th. Finally, Robert W. Baird boosted their target price on shares of Zoom Communications from $95.00 to $105.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat.com, Zoom Communications currently has a consensus rating of “Moderate Buy” and a consensus price target of $111.55.

Zoom Communications Stock Down 3.7%

Shares of ZM opened at $100.92 on Wednesday. The company has a market capitalization of $29.59 billion, a PE ratio of 14.82, a P/E/G ratio of 5.53 and a beta of 1.00. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74. The company has a 50-day simple moving average of $94.00 and a 200-day simple moving average of $91.30.

Zoom Communications (NASDAQ:ZM) last posted its quarterly 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 company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The company’s revenue for the quarter was up 4.9% on a year-over-year basis. During the same period last year, the firm 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. On average, research analysts anticipate that Zoom Communications will post 4.21 EPS for the current year.

Insider Activity

In related news, CEO Eric S. Yuan sold 12,100 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the completion of the sale, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at approximately $2,303,709.66. This trade represents a 34.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total transaction of $801,621.63. Following the sale, the director directly owned 127,060 shares in the company, valued at $12,874,989.80. This trade represents a 5.86% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 56,155 shares of company stock valued at $5,654,761. 8.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Zoom Communications during the second quarter worth about $17,053,000. California State Teachers Retirement System boosted its holdings in Zoom Communications by 8,620.6% in the second quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock valued at $2,761,908,000 after purchasing an additional 31,632,917 shares during the last quarter. Ameritas Advisory Services LLC purchased a new position in Zoom Communications in the second quarter valued at about $1,062,000. Wedmont Private Capital grew its stake in Zoom Communications by 17.0% during the 2nd quarter. Wedmont Private Capital now owns 4,047 shares of the company’s stock valued at $363,000 after purchasing an additional 588 shares in the last quarter. Finally, HB Wealth Management LLC grew its stake in Zoom Communications by 27.2% during the 2nd quarter. HB Wealth Management LLC now owns 8,014 shares of the company’s stock valued at $692,000 after purchasing an additional 1,712 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

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.