Zoom Communications’ (ZM) “Neutral” Rating Reiterated at Cantor Fitzgerald

Cantor Fitzgerald reiterated their neutral rating on shares of Zoom Communications (NASDAQ:ZM) in a research report released on Monday,Benzinga reports. Cantor Fitzgerald currently has a $104.00 price objective on the stock.

Other equities research analysts have also issued reports about the company. Morgan Stanley raised their price objective on Zoom Communications from $92.00 to $105.00 and gave the company an “equal weight” rating in a research note on Friday, May 22nd. Rosenblatt Securities reissued a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research report on Friday, August 21st. Royal Bank Of Canada restated an “outperform” rating and set a $130.00 price target on shares of Zoom Communications in a report on Tuesday, June 30th. Bank of America initiated coverage on Zoom Communications in a research report on Wednesday, August 19th. They issued a “buy” rating and a $130.00 price target for the company. Finally, BTIG Research reaffirmed a “buy” rating and set a $125.00 price objective on shares of Zoom Communications in a research note on Monday. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, Zoom Communications presently has a consensus rating of “Moderate Buy” and an average target price of $112.55.

Zoom Communications Stock Down 7.0%

Zoom Communications stock opened at $93.83 on Monday. The company’s 50-day moving average price is $94.13 and its 200-day moving average price is $91.33. The company has a market cap of $27.51 billion, a PE ratio of 8.69, a price-to-earnings-growth ratio of 5.45 and a beta of 1.00. Zoom Communications has a twelve month low of $70.70 and a twelve month high of $114.74.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 EPS for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The firm had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 11.31%. The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter 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. As a group, sell-side analysts expect that Zoom Communications will post 4.11 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Michelle Chang sold 8,489 shares of the company’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer 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 transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 Santiago Subotovsky sold 7,911 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $101.33, for a total value of $801,621.63. Following the completion of the sale, the director owned 127,060 shares in the company, valued at approximately $12,874,989.80. The trade was a 5.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 56,155 shares of company stock worth $5,654,761 in the last ninety days. 8.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zoom Communications

Several hedge funds have recently bought and sold shares of the business. Kestra Advisory Services LLC increased its stake in shares of Zoom Communications by 2.0% during the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock worth $512,000 after purchasing an additional 116 shares in the last quarter. 3Chopt Investment Partners LLC lifted its stake in Zoom Communications by 1.6% in the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after buying an additional 119 shares in the last quarter. Rexford Capital Inc. grew its holdings in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company’s stock valued at $31,000 after buying an additional 122 shares during the last quarter. New York State Teachers Retirement System grew its holdings in Zoom Communications by 0.5% during the 4th quarter. New York State Teachers Retirement System now owns 24,263 shares of the company’s stock valued at $2,094,000 after buying an additional 123 shares during the last quarter. Finally, Root Financial Partners LLC increased its position in Zoom Communications by 33.5% during the fourth quarter. Root Financial Partners LLC now owns 542 shares of the company’s stock worth $47,000 after buying an additional 136 shares in the last quarter. Institutional investors own 66.54% of the company’s stock.

Key Zoom Communications News

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

• Positive Sentiment: Zoom reported fiscal second-quarter revenue of $1.28 billion, up 4.9% year over year, and adjusted earnings of $1.55 per share. Both figures exceeded Wall Street expectations. Zoom Communications Reports Financial Results
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $6.08-$6.12, above the prior Wall Street forecast cited in reports. Enterprise revenue, large customer wins, AI-powered deals and contact-center bookings were highlighted as areas of strength. Zoom Q2 Earnings Call Highlights
• Positive Sentiment: Needham reaffirmed its Buy rating and maintained a $130 price target, while RBC said enterprise demand and broader AI adoption could support future growth. Stocks to Watch
• Neutral Sentiment: Analyst sentiment remained mixed: Citizens JMP and KeyCorp reaffirmed Market Perform and Sector Weight ratings, respectively, while Cantor Fitzgerald maintained a Neutral view. BTIG also reiterated Buy. Analyst Reactions
• Negative Sentiment: Zoom’s third-quarter adjusted EPS guidance of $1.46-$1.48 came in below analysts’ expectations, raising concerns that competition and slower online growth are pressuring profitability despite the company’s AI expansion. Zoom Forecasts Quarterly Profit Below Estimates

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.