Zoom Communications’ (ZM) “Buy” Rating Reaffirmed at Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reissued by equities researchers at Rosenblatt Securities in a report issued on Wednesday, Benzinga reports. They currently have a $130.00 target price on the stock. Rosenblatt Securities‘s price objective points to a potential upside of 28.91% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the stock. Weiss Ratings upgraded shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Wednesday, August 26th. Jefferies Financial Group decreased their target price on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. BTIG Research reiterated a “buy” rating and issued a $125.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $104.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. Sixteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Zoom Communications has a consensus rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Stock Up 3.5%

Shares of NASDAQ ZM traded up $3.39 during mid-day trading on Wednesday, reaching $100.85. 723,814 shares of the company were exchanged, compared to its average volume of 3,895,981. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The stock has a market capitalization of $29.43 billion, a PE ratio of 9.36, a PEG ratio of 4.51 and a beta of 1.03. The company’s 50 day moving average price is $96.88 and its 200 day moving average price is $94.88.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. During the same period in the previous year, the firm posted $1.53 EPS. The firm’s revenue was up 4.9% compared to the same quarter last year. 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, sell-side analysts predict that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Herbert Raymond Mcmaster sold 3,000 shares of Zoom Communications stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $94.71, for a total value of $284,130.00. Following the transaction, the director owned 8,479 shares in the company, valued at $803,046.09. This trade represents a 26.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the transaction, the director owned 127,060 shares in the company, valued at $12,874,989.80. The trade was 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. Insiders have sold 71,209 shares of company stock worth $6,938,989 over the last 90 days. Insiders own 8.83% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds have recently modified their holdings of the company. Sumitomo Mitsui DS Asset Management Company Ltd increased its position in shares of Zoom Communications by 0.4% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock valued at $2,380,000 after acquiring an additional 107 shares during the period. Fortitude Family Office LLC increased its position in shares of Zoom Communications by 27.2% in the third quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock valued at $48,000 after acquiring an additional 114 shares during the period. 3Chopt Investment Partners LLC increased its position in shares of Zoom Communications by 1.6% in the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after acquiring an additional 119 shares during the period. Rexford Capital Inc. increased its position in shares of 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 acquiring an additional 122 shares during the period. Finally, Thurston Springer Miller Herd & Titak Inc. increased its position in shares of Zoom Communications by 133.3% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after acquiring an additional 200 shares during the period. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Oppenheimer upgraded Zoom to Outperform from Perform and set a $130 price target. The firm said it was impressed by traction for Zoom’s newer AI services after attending Zoomtopia, signaling greater confidence that AI can support future growth. Zoom Video upgraded at Oppenheimer on AI platform traction, shares jump
• Positive Sentiment: Zoom introduced a Unified Context Layer and additional AI products designed to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. The initiative supports management’s effort to reposition Zoom as an AI-first business platform rather than primarily a video-conferencing provider. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Other analysts remained constructive: Rosenblatt reaffirmed a Buy rating with a $130 target, while BTIG maintained Buy with a $125 target. These targets imply meaningful potential upside from recent trading levels and reinforce the positive reaction to Zoom’s AI strategy.
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, expanding potential integrations for business customers seeking proof-of-human access and identity capabilities in an AI-heavy environment. Tools for Humanity joins Zoom ISV Exchange Program
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its Neutral rating with a $104 price target. The view suggests limited near-term upside and reflects continued caution about how quickly Zoom’s AI investments will translate into material revenue growth.

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.