Zoom Communications’ (ZM) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a research report report published on Thursday,Benzinga reports. Needham & Company LLC currently has a $130.00 price target on the stock.

Other equities research analysts have also issued reports about the stock. KeyCorp reissued a “sector weight” rating on shares of Zoom Communications in a report on Wednesday, August 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $130.00 price target on shares of Zoom Communications in a report on Wednesday. UBS Group dropped their price target on shares of Zoom Communications from $115.00 to $112.00 and set a “neutral” rating for the company in a research report on Wednesday. Yorkville Ives initiated coverage on shares of Zoom Communications in a research report on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 price target for the company. Finally, Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Sixteen investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $95.77 on Thursday. The stock has a 50-day simple moving average of $96.29 and a two-hundred day simple moving average of $95.10. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74. The firm has a market capitalization of $27.94 billion, a PE ratio of 8.87, a P/E/G ratio of 4.25 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business 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 business posted $1.53 earnings per share. The business’s quarterly revenue 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 analysts forecast that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Eric Yuan sold 12,100 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $93.74, for a total value of $1,134,254.00. Following the sale, the chief executive officer directly owned 22,998 shares in the company, valued at $2,155,832.52. The trade was a 34.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the business’s stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $94.71, for a total transaction of $284,130.00. Following the completion of the sale, the director owned 8,479 shares in the company, valued at approximately $803,046.09. This trade represents a 26.13% 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. Over the last ninety days, insiders sold 87,414 shares of company stock worth $8,580,692. Insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Several institutional investors have recently modified their holdings of the stock. Pacer Advisors Inc. lifted its position in Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock worth $208,680,000 after buying an additional 253,181 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Zoom Communications by 4.2% in 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 during the last quarter. Bank of America Corp DE boosted 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 valued at $142,108,000 after buying an additional 592,899 shares during the period. Bank of New York Mellon Corp boosted 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 valued at $113,490,000 after buying an additional 434,981 shares during the period. Finally, First Trust Advisors LP boosted 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 valued at $109,531,000 after buying an additional 36,657 shares during the period. 66.54% of the stock is owned by institutional investors.

Key Headlines 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

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.