Zoom Communications (NASDAQ:ZM) Stock Rating Reaffirmed as Neutral by Cantor Fitzgerald

Zoom Communications (NASDAQ:ZM)‘s stock had its “neutral” rating reaffirmed by stock analysts at Cantor Fitzgerald in a note issued to investors on Wednesday, Benzinga reports. They presently have a $104.00 price objective on the stock. Cantor Fitzgerald‘s price target indicates a potential upside of 6.71% from the stock’s previous close.

A number of other research firms have also issued reports on ZM. Oppenheimer raised shares of Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 target price for the company 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. UBS Group reaffirmed a “neutral” rating and issued a $112.00 price target on shares of Zoom Communications in a research note on Wednesday. KeyCorp reaffirmed a “sector weight” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Finally, Jefferies Financial Group reduced their price target on shares of Zoom Communications from $118.00 to $116.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Sixteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $114.48.

Zoom Communications Stock Down 0.1%

Zoom Communications stock opened at $97.46 on Wednesday. The firm has a 50-day moving average price of $96.88 and a two-hundred day moving average price of $94.88. The firm has a market capitalization of $28.44 billion, a price-to-earnings ratio of 9.02, a PEG ratio of 4.51 and a beta of 1.03. Zoom Communications has a 52-week low of $70.70 and a 52-week high of $114.74.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.48 by $0.07. The firm 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% on a year-over-year basis. During the same period in the previous year, the business posted $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. Research analysts expect that Zoom Communications will post 4.27 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Michelle Chang sold 8,489 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $99.46, for a total value of $844,315.94. Following the sale, the chief financial officer directly owned 40,438 shares in the company, valued at $4,021,963.48. The trade was a 17.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Santiago Subotovsky sold 2,637 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $93.74, for a total transaction of $247,192.38. Following the completion of the sale, the director owned 121,786 shares in the company, valued at $11,416,219.64. The trade was a 2.12% decrease in their ownership of the stock. 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 three months, insiders sold 71,209 shares of company stock worth $6,938,989. Company insiders own 8.83% of the company’s stock.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently made changes to their positions in ZM. Atreides Management LP bought a new stake in shares of Zoom Communications in the 1st quarter worth approximately $105,761,000. Rubric Capital Management LP bought a new stake in shares of Zoom Communications in the 1st quarter worth approximately $80,471,000. Bank of America Corp DE raised its holdings in shares of Zoom Communications by 50.5% in the 1st quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock worth $142,108,000 after purchasing an additional 592,899 shares in the last quarter. BlueCrest Capital Management Ltd bought a new stake in shares of Zoom Communications in the 2nd quarter worth approximately $43,925,000. Finally, KBC Group NV raised its holdings in shares of Zoom Communications by 69.1% in the 1st quarter. KBC Group NV now owns 1,193,027 shares of the company’s stock worth $95,907,000 after purchasing an additional 487,384 shares in the last quarter. 66.54% of the stock is currently owned by institutional investors.

Key Zoom Communications News

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.