Zoom Communications’ (ZM) “Buy” Rating Reiterated at BTIG Research

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reaffirmed by equities research analysts at BTIG Research in a note issued to investors on Wednesday, Benzinga reports. They presently have a $125.00 price target on the stock. BTIG Research‘s price target suggests a potential upside of 28.26% from the company’s current price.

Several other analysts have also commented on the stock. Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Needham & Company LLC reissued a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Wednesday, August 26th. Rosenblatt Securities reissued a “buy” rating and set a $130.00 target price on shares of Zoom Communications in a research note on Wednesday. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Finally, Oppenheimer upgraded shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 price target for the company in a research report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $114.61.

Zoom Communications Price Performance

ZM stock opened at $97.46 on Wednesday. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74. The firm has a market cap of $28.44 billion, a PE ratio of 9.02, a P/E/G ratio of 4.51 and a beta of 1.03. The firm has a 50 day simple moving average of $96.88 and a 200 day simple moving average of $94.88.

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. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the business earned $1.53 earnings per share. The business’s quarterly revenue was up 4.9% on a year-over-year basis. 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 4.27 earnings per share for the current year.

Insider Transactions at Zoom Communications

In other Zoom Communications news, CEO Eric Yuan sold 12,100 shares of Zoom Communications stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $93.74, for a total transaction of $1,134,254.00. Following the transaction, the chief executive officer owned 22,998 shares of the company’s stock, valued at $2,155,832.52. The trade was a 34.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the company’s stock in a transaction dated Thursday, October 8th. The shares were sold at an average price of $94.71, for a total value of $284,130.00. Following the completion of the transaction, the director owned 8,479 shares in the company, valued at $803,046.09. This represents a 26.13% 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. In the last 90 days, insiders sold 71,209 shares of company stock worth $6,938,989. 8.83% of the stock is currently owned by company insiders.

Institutional Trading of Zoom Communications

Several institutional investors have recently made changes to their positions in ZM. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in Zoom Communications by 0.4% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock valued at $2,380,000 after buying an additional 107 shares during the period. Fortitude Family Office LLC lifted its position in Zoom Communications by 27.2% in the 3rd quarter. Fortitude Family Office LLC now owns 533 shares of the company’s stock worth $48,000 after buying an additional 114 shares in the last quarter. 3Chopt Investment Partners LLC lifted its position in Zoom Communications by 1.6% in the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock worth $592,000 after buying an additional 119 shares in the last quarter. Rexford Capital Inc. boosted its stake in shares of 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 period. Finally, Thurston Springer Miller Herd & Titak Inc. boosted its stake in shares of Zoom Communications by 133.3% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 350 shares of the company’s stock valued at $30,000 after buying an additional 200 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Zoom Communications

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

• Positive Sentiment: Oppenheimer upgraded Zoom Communications (ZM) from “market perform” to “outperform” and set a $130 price target, citing a more constructive outlook for the stock.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $130 target, while BTIG Research maintained its “buy” rating and $125 target. The targets point to substantial potential appreciation from current levels.
• Positive Sentiment: At Zoomtopia, the company introduced a Unified Context Layer and additional AI-powered products intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools, and events. The initiatives support management’s effort to expand Zoom beyond video conferencing and create new revenue opportunities. Zoom AI strategy announcement
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, adding capabilities related to proof of human access for business customers. The partnership could strengthen Zoom’s ecosystem and address authentication needs as AI-generated content becomes more prevalent. Tools for Humanity partnership
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its “neutral” rating but increased or maintained its target at $104, suggesting limited upside relative to the more bullish analyst forecasts.
• Neutral Sentiment: Investor commentary is focusing on Zoom’s AI-first repositioning, cash-rich balance sheet, and potential to become a broader workplace platform. These arguments may support valuation, but execution and the company’s relatively modest growth remain important risks. Zoom investor session transcript

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.