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

BTIG Research reissued their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a report published on Monday morning,Benzinga reports. BTIG Research currently has a $125.00 target price on the stock.

A number of other brokerages have also commented on ZM. Royal Bank Of Canada reissued an “outperform” rating and issued a $130.00 price target on shares of Zoom Communications in a report on Tuesday, June 30th. Needham & Company LLC reiterated a “buy” rating and issued a $130.00 target price on shares of Zoom Communications in a research report on Thursday, July 2nd. Citigroup upped their target price on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Weiss Ratings cut Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, August 14th. Finally, Piper Sandler raised their price target on Zoom Communications from $91.00 to $107.00 and gave the company a “neutral” rating in a research report on Friday, May 22nd. Sixteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $112.55.

Zoom Communications Trading Down 7.0%

Shares of NASDAQ ZM opened at $93.83 on Monday. The business has a 50-day moving average of $94.13 and a 200-day moving average of $91.33. The firm has a market capitalization of $27.51 billion, a price-to-earnings ratio of 8.69, a PEG ratio of 5.45 and a beta of 1.00. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 11.31%. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.27 billion. During the same period last year, the firm posted $1.53 earnings per share. Zoom Communications’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. On average, analysts predict that Zoom Communications will post 4.11 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Velchamy Sankarlingam sold 7,644 shares of the business’s stock in a transaction that occurred on Wednesday, July 15th. The stock was sold at an average price of $91.98, for a total transaction of $703,095.12. Following the transaction, the insider directly owned 148,403 shares of the company’s stock, valued at approximately $13,650,107.94. The trade was a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 7,911 shares of the firm’s stock in a transaction 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 directly owned 127,060 shares of the company’s stock, valued at $12,874,989.80. The trade was a 5.86% 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. Over the last 90 days, insiders sold 56,155 shares of company stock worth $5,654,761. 8.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ZM. California State Teachers Retirement System boosted its stake in shares of Zoom Communications by 8,620.6% during the 2nd quarter. California State Teachers Retirement System now owns 31,999,864 shares of the company’s stock valued at $2,761,908,000 after purchasing an additional 31,632,917 shares in the last quarter. Vanguard Group Inc. boosted its position in Zoom Communications by 4.0% during the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after acquiring an additional 1,029,623 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Zoom Communications by 43.9% during the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock worth $1,052,328,000 after acquiring an additional 3,718,186 shares during the period. State Street Corp grew its holdings in shares of Zoom Communications by 5.0% during the 4th quarter. State Street Corp now owns 7,582,924 shares of the company’s stock worth $654,331,000 after acquiring an additional 363,776 shares during the period. Finally, Norges Bank bought a new position in shares of Zoom Communications in the 4th quarter worth approximately $509,788,000. 66.54% of the stock is currently owned by institutional investors.

Trending Headlines about Zoom Communications

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

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.