Zoom Communications (NASDAQ:ZM) Receives Buy Rating from Needham & Company LLC

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by analysts at Needham & Company LLC in a report issued on Wednesday,Benzinga reports. They currently have a $130.00 target price on the stock. Needham & Company LLC’s price target suggests a potential upside of 28.81% from the stock’s previous close.

Several other research firms have also issued reports on ZM. Jefferies Financial Group reiterated a “buy” rating and set a $116.00 price target on shares of Zoom Communications in a research report on Wednesday. Rosenblatt Securities restated a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Friday, August 21st. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Weiss Ratings cut Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, August 14th. Finally, BTIG Research restated a “buy” rating and set a $125.00 price objective on shares of Zoom Communications in a research report on Monday. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $111.55.

Zoom Communications Stock Down 3.7%

ZM opened at $100.92 on Wednesday. The stock has a market capitalization of $29.59 billion, a price-to-earnings ratio of 14.82, a P/E/G ratio of 5.53 and a beta of 1.00. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74. The company has a 50-day simple moving average of $94.00 and a 200 day simple moving average of $91.30.

Zoom Communications (NASDAQ:ZM) last released its 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. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period last year, the firm 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. Sell-side analysts anticipate that Zoom Communications will post 4.21 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other news, Director Santiago Subotovsky sold 7,911 shares of the company’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 completion of the transaction, the director directly owned 127,060 shares in the company, valued at approximately $12,874,989.80. This represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the 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 completion of the transaction, the chief financial officer owned 35,452 shares of the company’s stock, valued at $3,219,041.60. The trade was 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 sold 56,155 shares of company stock worth $5,654,761 in the last 90 days. 8.83% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC grew 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 worth $591,000 after purchasing an additional 1,153 shares during the last quarter. Intech Investment Management LLC raised its holdings in Zoom Communications by 59.1% in the 1st quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock valued at $1,238,000 after buying an additional 6,235 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in Zoom Communications by 82.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock worth $65,000 after buying an additional 397 shares during the period. Sivia Capital Partners LLC acquired a new stake in Zoom Communications during the 2nd quarter worth approximately $217,000. Finally, Invesco Ltd. grew its holdings in Zoom Communications by 7.0% during 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 during the last quarter. Institutional investors 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: Zoom reported adjusted earnings of $1.55 per share and revenue of $1.28 billion, exceeding analyst estimates of $1.48 and $1.27 billion, respectively. Revenue increased 4.9% year over year, while enterprise revenue rose 7.8% to $787.5 million. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the roughly $5.71 consensus cited in company updates. AI-powered deals, record contact-center bookings and larger enterprise wins were highlighted as drivers of future growth. Zoom Q2 2027 Earnings Call Highlights
• Neutral Sentiment: Analyst opinion remains divided. BTIG reaffirmed a Buy rating with a $125 price target, while Cantor Fitzgerald maintained a Neutral rating with a $104 target, reflecting uncertainty over the pace of Zoom’s growth and AI monetization. BTIG Buy Rating
• Negative Sentiment: Zoom’s third-quarter profit outlook came in below Wall Street expectations, despite revenue guidance near consensus. The forecast suggests that competition is pressuring margins and that AI investments have not yet produced enough incremental growth to satisfy investors. Zoom Forecasts Quarterly Profit Below Estimates
• Negative Sentiment: The earnings beat was relatively modest, with revenue growth remaining in the mid-single digits and online growth described as tempered. Reports characterized the outlook as flat or soft, causing the near-term guidance to overshadow the quarter’s better-than-expected results. Zoom’s Soft Q3 Guidance Overshadows Q2 Double Beat

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.