Wall Street Zen Downgrades Zoom Communications (NASDAQ:ZM) to Buy

Zoom Communications (NASDAQ:ZM) was downgraded by analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a note issued to investors on Monday.

Several other equities analysts have also recently issued reports on the company. Scotiabank upped their price objective on Zoom Communications from $75.00 to $85.00 and gave the company a “sector perform” rating in a research report on Friday, May 16th. Mizuho decreased their target price on shares of Zoom Communications from $105.00 to $71.00 and set an “outperform” rating for the company in a research note on Tuesday, April 15th. JMP Securities reiterated a “market perform” rating on shares of Zoom Communications in a research note on Thursday, May 22nd. Royal Bank Of Canada reiterated an “outperform” rating and set a $95.00 target price on shares of Zoom Communications in a research note on Thursday, May 22nd. Finally, William Blair reiterated an “outperform” rating on shares of Zoom Communications in a research note on Thursday, May 22nd. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $87.00.

Zoom Communications Stock Down 1.1%

Shares of ZM opened at $76.45 on Monday. The business’s 50 day moving average price is $78.57 and its 200-day moving average price is $79.12. Zoom Communications has a 52 week low of $55.06 and a 52 week high of $92.80. The stock has a market cap of $23.13 billion, a P/E ratio of 22.96, a P/E/G ratio of 12.83 and a beta of 0.71.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Wednesday, May 21st. The company reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.30 by $0.13. Zoom Communications had a return on equity of 11.08% and a net margin of 22.31%. The firm had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $1.17 billion. During the same period in the previous year, the firm posted $1.35 EPS. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year. On average, equities analysts anticipate that Zoom Communications will post 2.93 EPS for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, Director Janet Napolitano sold 2,617 shares of the firm’s stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $76.78, for a total value of $200,933.26. Following the completion of the sale, the director now owns 4,728 shares of the company’s stock, valued at $363,015.84. This trade represents a 35.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Eric S. Yuan sold 41,121 shares of the firm’s stock in a transaction dated Monday, April 14th. The stock was sold at an average price of $72.18, for a total transaction of $2,968,113.78. The disclosure for this sale can be found here. In the last quarter, insiders sold 94,196 shares of company stock valued at $6,885,843. Insiders own 10.78% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

Institutional investors have recently bought and sold shares of the business. SouthState Corp purchased a new position in Zoom Communications during the first quarter valued at approximately $25,000. Wayfinding Financial LLC acquired a new stake in Zoom Communications in the first quarter valued at approximately $25,000. Parkside Financial Bank & Trust boosted its stake in Zoom Communications by 277.4% in the fourth quarter. Parkside Financial Bank & Trust now owns 351 shares of the company’s stock valued at $29,000 after acquiring an additional 258 shares in the last quarter. Raiffeisen Bank International AG acquired a new stake in Zoom Communications in the fourth quarter valued at approximately $30,000. Finally, MassMutual Private Wealth & Trust FSB boosted its stake in Zoom Communications by 177.0% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 385 shares of the company’s stock valued at $28,000 after acquiring an additional 246 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

About Zoom Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.