Zoom Communications (NASDAQ:ZM) Stock Rating Reaffirmed as “Outperform” by Royal Bank Of Canada

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reaffirmed by investment analysts at Royal Bank Of Canada in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $130.00 target price on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 29.33% from the company’s current price.

Several other analysts also recently issued reports on ZM. UBS Group reiterated a “neutral” rating and issued a $112.00 price target on shares of Zoom Communications in a report on Wednesday. Morgan Stanley raised their price objective on Zoom Communications from $105.00 to $107.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 26th. Rosenblatt Securities restated a “buy” rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday. Yorkville Ives assumed coverage on Zoom Communications in a research report on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 target price for the company. Finally, Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $104.00 target price on shares of Zoom Communications in a research report on Wednesday. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat.com, Zoom Communications has a consensus rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Up 3.1%

Shares of Zoom Communications stock traded up $3.06 during trading hours on Wednesday, hitting $100.52. The company’s stock had a trading volume of 907,809 shares, compared to its average volume of 3,897,116. The business has a fifty day moving average of $96.88 and a 200 day moving average of $94.88. Zoom Communications has a 1-year low of $70.70 and a 1-year high of $114.74. The company has a market capitalization of $29.33 billion, a PE ratio of 9.31, a P/E/G ratio of 4.51 and a beta of 1.03.

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

Insider Buying and Selling at Zoom Communications

In other news, Director Santiago Subotovsky sold 7,911 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the transaction, the director directly owned 127,060 shares of the company’s stock, valued at approximately $12,874,989.80. The trade was a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric Yuan sold 12,100 shares of the company’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the completion of the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at $2,155,832.52. This trade represents a 34.47% 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. In the last quarter, insiders sold 71,209 shares of company stock valued at $6,938,989. 8.83% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in shares of Zoom Communications by 0.4% during 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 in the last quarter. Fortitude Family Office LLC increased its position in shares of Zoom Communications by 27.2% during the third quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock worth $48,000 after acquiring an additional 114 shares during the last quarter. 3Chopt Investment Partners LLC increased its position in shares of Zoom Communications by 1.6% during the first quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock worth $592,000 after acquiring an additional 119 shares during the last quarter. Rexford Capital Inc. increased its position in shares of Zoom Communications by 45.7% during the first quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock worth $31,000 after acquiring an additional 122 shares during the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. lifted its stake 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 worth $30,000 after acquiring an additional 200 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Trending Headlines about 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.