Zoom Communications’ (ZM) “Market Perform” Rating Reiterated at Citizens Jmp

Citizens Jmp reaffirmed their market perform rating on shares of Zoom Communications (NASDAQ:ZM) in a report issued on Wednesday,Benzinga reports.

ZM has been the topic of a number of other research reports. Citigroup increased their price target on shares of Zoom Communications from $122.00 to $126.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Weiss Ratings lowered shares of Zoom Communications from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, August 14th. Robert W. Baird upped their price objective on Zoom Communications from $95.00 to $105.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. HSBC increased their target price on Zoom Communications from $107.00 to $133.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Finally, Cantor Fitzgerald restated a “neutral” rating and issued a $104.00 price target on shares of Zoom Communications in a research note on Monday, August 24th. Sixteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, Zoom Communications currently has an average rating of “Moderate Buy” and an average target price of $112.55.

Zoom Communications Price Performance

Shares of Zoom Communications stock opened at $98.43 on Wednesday. Zoom Communications has a 1 year low of $70.70 and a 1 year high of $114.74. The firm’s 50-day moving average is $94.65 and its 200 day moving average is $91.44. The stock has a market cap of $28.86 billion, a price-to-earnings ratio of 9.11, a PEG ratio of 5.12 and a beta of 1.00.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data 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. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. Zoom Communications’s revenue was up 4.9% compared to the same quarter last year. During the same period last year, the business 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. On average, equities analysts expect that Zoom Communications will post 4.25 EPS for the current fiscal year.

Insider Transactions at Zoom Communications

In other news, insider Velchamy Sankarlingam sold 7,644 shares of the company’s stock in a transaction dated Wednesday, July 15th. The shares were sold at an average price of $91.98, for a total transaction of $703,095.12. Following the completion of the sale, the insider owned 148,403 shares of the company’s stock, valued at $13,650,107.94. This represents a 4.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric S. Yuan sold 12,100 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $100.17, for a total transaction of $1,212,057.00. Following the sale, the chief executive officer owned 22,998 shares of the company’s stock, valued at $2,303,709.66. This trade represents a 34.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 56,155 shares of company stock valued at $5,654,761. 8.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Kestra Advisory Services LLC increased its holdings in Zoom Communications by 2.0% in the 4th quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock worth $512,000 after acquiring an additional 116 shares in the last quarter. 3Chopt Investment Partners LLC raised its position in shares of Zoom Communications by 1.6% during the 1st quarter. 3Chopt Investment Partners LLC now owns 7,370 shares of the company’s stock valued at $592,000 after purchasing an additional 119 shares during the period. Rexford Capital Inc. lifted 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 in the last quarter. New York State Teachers Retirement System boosted its holdings in Zoom Communications by 0.5% in the 4th quarter. New York State Teachers Retirement System now owns 24,263 shares of the company’s stock worth $2,094,000 after buying an additional 123 shares during the period. Finally, Root Financial Partners LLC increased its stake in Zoom Communications by 33.5% in the 4th 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. 66.54% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Zoom Communications

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

• Positive Sentiment: Zoom reported fiscal Q2 revenue of $1.28 billion, up 4.9% year over year, and adjusted EPS of $1.55, exceeding analyst estimates of $1.27 billion and $1.48, respectively. Enterprise revenue grew 7.8% to $787.5 million, while remaining performance obligations increased 14%, indicating solid demand from larger customers. Zoom Communications Q2 2027 Earnings Call Summary
• Positive Sentiment: ZM recently moved above its 50-day moving average, a technical development that can signal improving short-term momentum and may attract additional technical buyers. Zoom Communications Breaks Above 50-Day Moving Average
• Positive Sentiment: Some analysts remain constructive: Needham reiterated a “Buy” rating, while another analysis cited Zoom’s cash position, 24.6% GAAP operating margin and potential value from its Anthropic investment as reasons for optimism. Needham Reiterates Buy Rating
• Neutral Sentiment: Analyst views remain mixed. Citizens JMP assigned a “Market Perform” rating and KeyCorp reaffirmed “Sector Weight,” suggesting the earnings beat may already be reflected in the stock’s valuation. Citizens JMP Market Perform Rating
• Negative Sentiment: Growth remains uneven: online revenue increased only 0.6% to $489.7 million, and management’s third-quarter profit outlook was weaker than expected. The cautious guidance overshadowed the quarterly earnings beat and raised concerns about Zoom’s ability to accelerate companywide growth through AI and enterprise products. Zoom Enterprise and Online Revenue Analysis

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.