Zoom Communications (NASDAQ:ZM) Earns “Outperform” Rating from Royal Bank Of Canada

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reiterated by stock analysts at Royal Bank Of Canada in a note issued to investors on Wednesday, Benzinga reports. They presently have a $130.00 price target on the stock. Royal Bank Of Canada‘s price target indicates a potential upside of 30.69% from the stock’s previous close.

A number of other analysts have also recently weighed in on ZM. UBS Group dropped their price target on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a research report on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $130.00 price target on shares of Zoom Communications in a research note on Wednesday, August 26th. BTIG Research reaffirmed a “buy” rating and set a $125.00 price target on shares of Zoom Communications in a research note on Wednesday. Weiss Ratings raised Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Finally, Oppenheimer upgraded Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 target price for the company in a report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Trading Up 2.1%

NASDAQ ZM traded up $2.01 on Wednesday, hitting $99.47. 2,086,168 shares of the stock traded hands, compared to its average volume of 3,902,141. The stock has a 50-day moving average of $96.88 and a 200 day moving average of $94.88. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74. The company has a market capitalization of $29.02 billion, a P/E ratio of 9.21, a price-to-earnings-growth ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. The business had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the prior 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. As a group, equities research analysts expect that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Buying and Selling at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 2,637 shares of the firm’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $93.74, for a total transaction of $247,192.38. Following the transaction, the director directly owned 121,786 shares in the company, valued at $11,416,219.64. This trade represents a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 firm’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.46, for a total value of $844,315.94. Following the transaction, the chief financial officer owned 40,438 shares in the company, valued at approximately $4,021,963.48. This trade represents a 17.35% 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. Insiders sold 71,209 shares of company stock valued at $6,938,989 in the last quarter. Corporate insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Several hedge funds and other institutional investors have recently made changes to their positions in ZM. Atreides Management LP acquired a new stake in shares of Zoom Communications in the first quarter valued at about $105,761,000. Rubric Capital Management LP acquired a new stake in Zoom Communications during the first quarter worth about $80,471,000. Bank of America Corp DE boosted its holdings in Zoom Communications by 50.5% during the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after purchasing an additional 592,899 shares in the last quarter. BlueCrest Capital Management Ltd acquired a new stake in Zoom Communications during the second quarter valued at approximately $43,925,000. Finally, KBC Group NV boosted its holdings in Zoom Communications by 69.1% during the first quarter. KBC Group NV now owns 1,193,027 shares of the company’s stock valued at $95,907,000 after purchasing an additional 487,384 shares in the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

Zoom Communications News Summary

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

• Positive Sentiment: AI strategy gains momentum: Zoom introduced a Unified Context Layer and new AI capabilities designed to turn meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. The offerings support management’s effort to reposition Zoom as an AI-first business platform and create additional revenue opportunities. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Analyst upgrade: Oppenheimer upgraded Zoom from “market perform” to “outperform” and set a $130 price target, citing traction for the company’s newer AI services following the Zoomtopia event. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Support from other analysts: Royal Bank of Canada reaffirmed “outperform” with a $130 target; Rosenblatt maintained “buy” at $130; and BTIG maintained “buy” at $125. These targets imply substantial upside from recent trading levels.
• Positive Sentiment: Financial outlook: Zoom presented long-term financial targets, giving investors greater visibility into its growth and profitability plans as it expands beyond core videoconferencing.
• Neutral Sentiment: Strategic partnerships: Tools for Humanity joined Zoom’s ISV Exchange Program to provide proof-of-human access for business customers, potentially strengthening Zoom’s ecosystem as AI-generated activity becomes more prevalent. Tools for Humanity joins Zoom ISV Exchange Program
• Neutral Sentiment: Mixed analyst stance: Cantor Fitzgerald reaffirmed a “neutral” rating with a $104 target, indicating that some analysts view much of the near-term opportunity as already reflected in the stock.

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.