Rosenblatt Securities Reaffirms “Buy” Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reissued by stock analysts at Rosenblatt Securities in a research report issued to clients and investors on Wednesday, Benzinga reports. They presently have a $130.00 price objective on the stock. Rosenblatt Securities‘s price objective points to a potential upside of 30.69% from the company’s previous close.

ZM has been the subject of a number of other research reports. Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Morgan Stanley upped their price target on Zoom Communications from $105.00 to $107.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 26th. Oppenheimer upgraded Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price target for the company in a research report on Wednesday. Jefferies Financial Group reduced their price target on Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research report on Wednesday, August 26th. Finally, Needham & Company LLC restated a “buy” rating and issued a $130.00 price target on shares of Zoom Communications in a research report on Wednesday, August 26th. Sixteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Trading Up 2.1%

NASDAQ:ZM traded up $2.01 on Wednesday, reaching $99.47. 2,086,168 shares of the stock traded hands, compared to its average volume of 3,902,141. The company has a market capitalization of $29.02 billion, a price-to-earnings ratio of 9.21, a PEG ratio of 4.51 and a beta of 1.03. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74. The company’s fifty day simple moving average is $96.88 and its 200 day simple moving average is $94.88.

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

Insiders Place Their Bets

In other Zoom Communications news, CFO Michelle Chang sold 8,489 shares of the company’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $99.46, for a total value of $844,315.94. Following the completion of the sale, the chief financial officer owned 40,438 shares in the company, valued at $4,021,963.48. This represents a 17.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 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. Over the last 90 days, insiders have sold 71,209 shares of company stock valued at $6,938,989. 8.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Zoom Communications

Institutional investors have recently made changes to their positions in the business. Pacer Advisors Inc. grew its position in shares of Zoom Communications by 10.8% during the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock worth $208,680,000 after purchasing an additional 253,181 shares in the last quarter. Dimensional Fund Advisors LP grew its position 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 worth $189,051,000 after purchasing an additional 94,043 shares in the last quarter. Bank of America Corp DE grew its position 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 worth $142,108,000 after purchasing an additional 592,899 shares in the last quarter. Bank of New York Mellon Corp grew its position 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 worth $113,490,000 after purchasing an additional 434,981 shares in the last quarter. Finally, First Trust Advisors LP grew its position 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 worth $109,531,000 after purchasing an additional 36,657 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

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.

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.