Zoom Communications’ (ZM) Buy Rating Reiterated at BTIG Research

BTIG Research reiterated their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a research report sent to investors on Wednesday,Benzinga reports. BTIG Research currently has a $125.00 price objective on the stock.

Other research analysts have also issued reports about the company. UBS Group cut their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a research note on Wednesday. Oppenheimer upgraded 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 research note on Wednesday. Needham & Company LLC reissued a “buy” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Wednesday, August 26th. Cantor Fitzgerald restated a “neutral” rating and issued a $104.00 price objective on shares of Zoom Communications in a research note on Monday, August 24th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $108.00 price objective on shares of Zoom Communications in a report on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Zoom Communications currently has an average rating of “Moderate Buy” and a consensus price target of $114.48.

Zoom Communications Stock Down 0.4%

Shares of ZM opened at $95.77 on Wednesday. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74. The firm has a market capitalization of $27.94 billion, a price-to-earnings ratio of 26.50, a P/E/G ratio of 4.27 and a beta of 1.03. The stock’s 50-day moving average price is $96.29 and its 200 day moving average price is $95.10.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating 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 firm had revenue of $1.28 billion during the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the prior year, the firm posted $1.53 EPS. The company’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. Equities research analysts expect that Zoom Communications will post 4.27 EPS for the current year.

Insider Buying and Selling

In other news, Director Santiago Subotovsky sold 3,812 shares of the stock in a transaction that occurred on Wednesday, October 21st. The stock was sold at an average price of $100.56, for a total value of $383,334.72. Following the completion of the transaction, the director directly owned 117,974 shares of the company’s stock, valued at approximately $11,863,465.44. This represents a 3.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $99.26, for a total value 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 position. The SEC filing for this sale provides additional information. 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. In the last 90 days, insiders sold 87,414 shares of company stock worth $8,580,692. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Hsbc Holdings PLC grew its position 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 last quarter. Tidal Investments LLC increased its holdings in Zoom Communications by 251.2% during the 2nd quarter. Tidal Investments LLC now owns 123,450 shares of the company’s stock valued at $10,655,000 after purchasing an additional 88,303 shares in the last quarter. Bull Harbor Capital LLC acquired a new stake in Zoom Communications during the 1st quarter valued at $939,000. First Heartland Consultants Inc. acquired a new stake in Zoom Communications during the 3rd quarter valued at $1,870,000. Finally, Edgestream Partners L.P. bought a new position in Zoom Communications in the 1st quarter valued at $2,689,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Analyst support remains broad: Oppenheimer upgraded Zoom, while BTIG Research and RBC initiated or reiterated bullish ratings. Rosenblatt maintained a Buy rating, and Needham reaffirmed its Buy rating with a $130 price target, implying substantial upside from recent levels. Oppenheimer upgrades Zoom BTIG gives Zoom a Buy rating Rosenblatt maintains Buy rating RBC gives Zoom an Outperform rating
• Positive Sentiment: Zoomtopia highlighted a deeper AI push: Zoom introduced a unified context layer and additional AI tools designed to convert meeting discussions into completed work across Zoom Workplace, customer experience, developer tools, and events. The announcements support management’s effort to reaccelerate growth and improve the platform’s strategic value. Zoom AI strategy announcement
• Neutral Sentiment: Valuation arguments are mixed: Some analysis estimates ZM is undervalued following the AI announcements, while comparisons with other software stocks question whether it is currently the better value opportunity. Wells Fargo maintained a Hold rating, and Cantor Fitzgerald reiterated Neutral, limiting the overall bullish signal. Wells Fargo maintains Hold rating
• Negative Sentiment: Near-term sentiment has been pressured: Zoom’s stock recently declined more sharply than the broader market. Commentary also cautions that the shares may trade at a discount after the AI push if investors remain uncertain about monetization, execution, or the pace of revenue growth. Zoom stock valuation after AI push

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.