Zoom Communications, Inc. (NASDAQ:ZM) Given Consensus Rating of “Moderate Buy” by Analysts

Shares of Zoom Communications, Inc. (NASDAQ:ZM) have been given an average rating of “Moderate Buy” by the twenty-eight ratings firms that are covering the firm, MarketBeat Ratings reports. Twelve research analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $111.6364.

Several analysts have weighed in on ZM shares. Wells Fargo & Company boosted their target price on shares of Zoom Communications from $90.00 to $105.00 and gave the company an “equal weight” rating in a research note on Friday, May 22nd. BTIG Research lifted their target price on Zoom Communications from $100.00 to $125.00 and gave the company a “buy” rating in a research note on Friday, May 22nd. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $130.00 price target on shares of Zoom Communications in a research note on Tuesday, June 30th. Bank of America began coverage on Zoom Communications in a report on Wednesday. They set a “buy” rating and a $130.00 target price on the stock. Finally, Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a report on Wednesday, May 20th.

Zoom Communications Stock Performance

NASDAQ:ZM opened at $106.30 on Friday. The company has a market capitalization of $31.17 billion, a price-to-earnings ratio of 15.61, a price-to-earnings-growth ratio of 4.26 and a beta of 1.00. Zoom Communications has a one year low of $70.70 and a one year high of $114.74. The stock has a 50-day simple moving average of $93.34 and a 200 day simple moving average of $91.01.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.42 by $0.13. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same quarter last year, the business posted $1.43 EPS. Zoom Communications’s quarterly revenue was up 5.5% compared to the same quarter last year. On average, equities research analysts forecast that Zoom Communications will post 4.21 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Eric S. Yuan sold 12,100 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the sale, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at $2,303,709.66. The trade was a 34.47% decrease in their ownership of the stock. The sale 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, CFO Michelle Chang sold 8,489 shares of the company’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $90.80, for a total value of $770,801.20. Following the sale, the chief financial officer directly owned 35,452 shares of the company’s stock, valued at approximately $3,219,041.60. This represents a 19.32% 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. Insiders have sold a total of 56,155 shares of company stock worth $5,654,761 over the last quarter. 8.83% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

Several institutional investors and hedge funds have recently bought and sold shares of ZM. NewEdge Advisors LLC raised its holdings in shares of Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock valued at $591,000 after acquiring an additional 1,153 shares during the period. Intech Investment Management LLC boosted its position in shares of Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock worth $1,238,000 after buying an additional 6,235 shares during the period. Geneos Wealth Management Inc. grew its holdings in shares of Zoom Communications by 82.0% during the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after buying an additional 397 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Zoom Communications during the second quarter valued at $217,000. Finally, Invesco Ltd. lifted its stake in Zoom Communications by 7.0% in the 2nd quarter. Invesco Ltd. now owns 730,207 shares of the company’s stock worth $56,942,000 after acquiring an additional 47,749 shares in the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Bank of America sees a growth recovery. BofA initiated coverage with a Buy rating and a $130 price target, citing improving retention, new products and Zoom’s expansion beyond its core Meetings business. BofA reveals surprising reason to buy Zoom stock
• Positive Sentiment: Additional BofA commentary characterized Zoom’s growth reacceleration as durable as the company broadens into areas such as communications and collaboration products. Zoom’s Growth Reacceleration Is Durable as It Moves Beyond Meetings
• Positive Sentiment: Wall Street’s average brokerage recommendation remains equivalent to Buy, reinforcing the constructive analyst view. Zoom also has potential indirect exposure to artificial-intelligence growth through its relationship with Anthropic, although this is not a direct earnings catalyst. Is It Worth Investing in Zoom Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Investors are positioning ahead of Zoom’s fiscal second-quarter earnings for the quarter ended July 2026. Analysts are watching revenue, profitability, customer growth, retention and trends in newer products, but the available reports do not provide a clear earnings surprise signal. Ahead of Zoom Q2 Earnings
• Negative Sentiment: The bullish analyst consensus may already be reflected in the stock, increasing the risk of profit-taking or disappointment if upcoming results and guidance do not exceed elevated expectations. Recent gains also leave the shares near their 52-week high.

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.