Zoom Communications (NASDAQ:ZM) Earns Buy Rating from Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reiterated by equities researchers at Rosenblatt Securities in a report issued on Wednesday, Benzinga reports. They presently have a $130.00 price target on the stock. Rosenblatt Securities‘s target price would suggest a potential upside of 33.39% from the company’s previous close.

A number of other brokerages also recently issued reports on ZM. Morgan Stanley raised their price target on shares of Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a report on Wednesday, August 26th. Bank of America started coverage on shares of Zoom Communications in a report on Wednesday, August 19th. They set a “buy” rating and a $130.00 price objective for the company. Jefferies Financial Group lowered their price objective 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. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research report on Wednesday, August 26th. Finally, Oppenheimer upgraded shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 target price on the stock in a report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $114.61.

Zoom Communications Price Performance

Zoom Communications stock opened at $97.46 on Wednesday. Zoom Communications has a one year low of $70.70 and a one year high of $114.74. The stock has a market capitalization of $28.44 billion, a PE ratio of 9.02, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03. The business’s fifty day moving average is $96.88 and its 200 day moving average is $94.88.

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

Insider Activity at Zoom Communications

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $99.46, for a total transaction of $844,315.94. Following the completion of the sale, the chief financial officer owned 40,438 shares of the company’s stock, valued at approximately $4,021,963.48. The trade was a 17.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the company’s stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $94.71, for a total value of $284,130.00. Following the completion of the sale, the director owned 8,479 shares of the company’s stock, valued at approximately $803,046.09. The trade was a 26.13% 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 sold 71,209 shares of company stock valued at $6,938,989 in the last ninety days. Corporate insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ZM. Hsbc Holdings PLC raised its stake in Zoom Communications by 43.6% during the 4th quarter. Hsbc Holdings PLC now owns 422,470 shares of the company’s stock worth $36,460,000 after acquiring an additional 128,174 shares during the period. Tidal Investments LLC boosted its position in shares of Zoom Communications by 251.2% in the second quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock worth $10,655,000 after purchasing an additional 88,303 shares during the period. Bull Harbor Capital LLC bought a new position in shares of Zoom Communications in the first quarter worth approximately $939,000. First Heartland Consultants Inc. purchased a new stake in shares of Zoom Communications in the third quarter worth $1,870,000. Finally, Edgestream Partners L.P. purchased a new stake in shares of Zoom Communications in the first quarter worth $2,689,000. 66.54% of the stock is currently owned by institutional investors.

Trending Headlines about Zoom Communications

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

Zoom Communications Company Profile

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.