Zoom Communications (NASDAQ:ZM) Stock Rating Reaffirmed as Buy by Rosenblatt Securities

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by analysts at Rosenblatt Securities in a report released on Wednesday, Benzinga reports. They presently have a $130.00 price objective on the stock. Rosenblatt Securities‘s price target suggests a potential upside of 29.07% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the stock. BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a research report on Monday, August 24th. Oppenheimer raised shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price target on the stock in a report on Wednesday. UBS Group reaffirmed a “neutral” rating and issued a $112.00 price target on shares of Zoom Communications in a report on Wednesday. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $104.00 price target on shares of Zoom Communications in a report on Monday, August 24th. Sixteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Zoom Communications currently has a consensus rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Stock Up 3.3%

Zoom Communications stock opened at $100.72 on Wednesday. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74. The company’s 50 day moving average price is $96.88 and its two-hundred day moving average price is $94.88. The stock has a market cap of $29.39 billion, a P/E ratio of 9.37, a P/E/G ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last posted its earnings results 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 net margin of 65.19% and a return on equity of 10.86%. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter last year, the firm earned $1.53 EPS. The company’s quarterly 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, equities analysts anticipate that Zoom Communications will post 4.27 EPS for the current year.

Insider Activity

In other news, Director Herbert Raymond Mcmaster sold 3,000 shares of the business’s stock in a transaction on 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 directly owned 8,479 shares in the company, valued at $803,046.09. The trade was a 26.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the business’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $99.26, for a total transaction of $758,842.70. Following the transaction, the insider owned 151,813 shares of the company’s stock, valued at $15,068,958.38. This trade represents a 4.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Over the last three months, insiders sold 71,209 shares of company stock worth $6,938,989. Company insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ZM. Pacer Advisors Inc. boosted its position in Zoom Communications by 10.8% during the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after buying an additional 253,181 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Zoom Communications by 4.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after acquiring an additional 94,043 shares during the last quarter. Bank of America Corp DE raised its stake in shares of 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 acquiring an additional 592,899 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of Zoom Communications by 44.5% during the first quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after acquiring an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Zoom Communications by 2.8% during the first quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after acquiring an additional 36,657 shares during the last quarter. 66.54% of the stock is currently 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: 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.