Zoom Communications (NASDAQ:ZM) Stock Price Up 6.7% – What’s Next?

Zoom Communications, Inc. (NASDAQ:ZM) traded up 6.7% during mid-day trading on Monday . The company traded as high as $91.17 and last traded at $91.4880. 1,166,855 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 2,592,674 shares. The stock had previously closed at $85.78.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Wall Street Zen cut shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. Weiss Ratings reissued a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Rosenblatt Securities restated a “buy” rating and issued a $115.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. BTIG Research initiated coverage on Zoom Communications in a research note on Tuesday, December 16th. They issued a “buy” rating and a $105.00 price objective for the company. Finally, Needham & Company LLC reissued a “buy” rating and set a $100.00 target price on shares of Zoom Communications in a research note on Tuesday, November 25th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $93.82.

Zoom Communications Stock Performance

The firm has a market cap of $28.27 billion, a P/E ratio of 18.57, a P/E/G ratio of 7.71 and a beta of 0.87. The firm’s fifty day simple moving average is $85.27 and its 200 day simple moving average is $81.66.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, beating analysts’ consensus estimates of $1.44 by $0.08. The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.21 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. Zoom Communications’s revenue for the quarter was up 4.4% compared to the same quarter last year. During the same period last year, the firm posted $1.38 earnings per share. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. On average, equities research analysts predict that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other news, CFO Michelle Chang sold 8,417 shares of the firm’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $86.54, for a total value of $728,407.18. Following the completion of the sale, the chief financial officer directly owned 25,482 shares of the company’s stock, valued at $2,205,212.28. This trade represents a 24.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Velchamy Sankarlingam sold 7,568 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.55, for a total value of $655,010.40. Following the transaction, the insider directly owned 136,182 shares in the company, valued at approximately $11,786,552.10. This represents a 5.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 317,745 shares of company stock worth $27,002,595. 10.78% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank purchased a new position in Zoom Communications during the 2nd quarter valued at $539,998,000. AQR Capital Management LLC lifted its position in shares of Zoom Communications by 23.4% during the third quarter. AQR Capital Management LLC now owns 8,477,057 shares of the company’s stock worth $699,357,000 after purchasing an additional 1,607,253 shares during the last quarter. Acadian Asset Management LLC boosted its stake in shares of Zoom Communications by 41.1% during the second quarter. Acadian Asset Management LLC now owns 3,769,480 shares of the company’s stock valued at $293,909,000 after purchasing an additional 1,097,333 shares during the period. Two Sigma Investments LP bought a new position in shares of Zoom Communications in the third quarter worth about $86,709,000. Finally, Vanguard Group Inc. increased its stake in Zoom Communications by 4.0% in the 3rd quarter. Vanguard Group Inc. now owns 25,937,601 shares of the company’s stock worth $2,139,852,000 after buying an additional 986,164 shares during the period. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

About Zoom Communications

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.