Zacks Research Upgrades Zoom Communications (NASDAQ:ZM) to “Strong-Buy”

Zoom Communications (NASDAQ:ZM) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued on Wednesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the company. Royal Bank Of Canada restated an “outperform” rating and set a $100.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Jefferies Financial Group boosted their price objective on Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Tuesday, November 25th. JPMorgan Chase & Co. increased their price objective on Zoom Communications from $85.00 to $90.00 and gave the company a “neutral” rating in a research note on Tuesday, November 25th. Citigroup raised their target price on shares of Zoom Communications from $85.00 to $94.00 and gave the stock a “neutral” rating in a report on Monday, November 17th. Finally, Dbs Bank raised shares of Zoom Communications to a “moderate buy” rating in a research note on Tuesday, September 16th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $93.00.

Zoom Communications Stock Performance

ZM stock opened at $83.32 on Wednesday. The firm has a market cap of $24.67 billion, a P/E ratio of 16.21, a P/E/G ratio of 7.75 and a beta of 0.81. The firm’s fifty day moving average is $85.36 and its 200 day moving average is $80.94. Zoom Communications has a 52 week low of $64.41 and a 52 week high of $91.43.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.08. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same period in the prior year, the business posted $1.38 earnings per share. The company’s revenue was up 4.4% on a year-over-year basis. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. As a group, analysts forecast that Zoom Communications will post 2.93 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Eric S. Yuan sold 73,378 shares of the firm’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $87.29, for a total value of $6,405,165.62. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Aparna Bawa sold 10,528 shares of Zoom Communications stock in a transaction on Thursday, October 16th. The shares were sold at an average price of $79.77, for a total transaction of $839,818.56. Following the completion of the sale, the chief operating officer owned 1,978 shares in the company, valued at approximately $157,785.06. This trade represents a 84.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 462,751 shares of company stock valued at $38,730,439 in the last 90 days. 11.51% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zoom Communications

Institutional investors and hedge funds have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC purchased a new position in shares of Zoom Communications during the second quarter valued at about $27,000. REAP Financial Group LLC lifted its holdings in Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock worth $28,000 after buying an additional 229 shares during the period. FNY Investment Advisers LLC purchased a new stake in Zoom Communications in the second quarter worth about $31,000. Root Financial Partners LLC bought a new stake in Zoom Communications during the 3rd quarter valued at approximately $33,000. Finally, Quent Capital LLC purchased a new position in shares of Zoom Communications during the 3rd quarter worth approximately $34,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.