Zoom Communications (NASDAQ:ZM) Earns Buy Rating from Analysts at Bank of America

Stock analysts at Bank of America began coverage on shares of Zoom Communications (NASDAQ:ZM) in a research note issued on Wednesday. The brokerage set a “buy” rating and a $130.00 price target on the stock. Bank of America‘s target price would suggest a potential upside of 21.61% from the company’s previous close.

Other analysts also recently issued reports about the stock. Piper Sandler boosted their price target on shares of Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research note on Friday, May 22nd. Benchmark increased their target price on Zoom Communications from $115.00 to $121.00 and gave the company a “buy” rating in a report on Thursday, May 21st. HSBC lifted their price target on Zoom Communications from $107.00 to $133.00 and gave the stock a “buy” rating in a research note on Tuesday, June 2nd. Morgan Stanley increased 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. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research note on Thursday, July 23rd. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat, Zoom Communications has an average rating of “Moderate Buy” and a consensus target price of $110.27.

Zoom Communications Price Performance

ZM stock traded up $2.19 during mid-day trading on Wednesday, hitting $106.89. 162,067 shares of the stock were exchanged, compared to its average volume of 4,118,477. The business has a fifty day moving average price of $92.79 and a 200 day moving average price of $90.81. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74. The stock has a market capitalization of $31.34 billion, a price-to-earnings ratio of 15.71, a PEG ratio of 5.68 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Thursday, May 21st. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.42 by $0.13. The business had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.22 billion. Zoom Communications had a return on equity of 11.87% and a net margin of 41.99%.Zoom Communications’s revenue for the quarter was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. As a group, equities analysts forecast that Zoom Communications will post 4.21 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In related news, CFO Michelle Chang sold 8,489 shares of Zoom Communications 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 sale, the chief financial officer directly owned 35,452 shares in the company, valued at $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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, CEO Eric S. Yuan sold 12,100 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total value of $1,212,057.00. Following the transaction, the chief executive officer directly owned 22,998 shares of the company’s stock, valued at $2,303,709.66. This represents a 34.47% decrease in their position. 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 have sold 56,155 shares of company stock worth $5,654,761 over the last ninety days. Corporate insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

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

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.