Zoom Communications (NASDAQ:ZM) Reaches New 12-Month High – Here’s Why

Zoom Communications, Inc. (NASDAQ:ZM)’s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $95.83 and last traded at $95.46, with a volume of 10279969 shares changing hands. The stock had previously closed at $85.78.

Zoom Communications News Summary

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

• Positive Sentiment: Baird estimates Zoom’s 2023 investment in Anthropic could now be worth $2 billion–$4 billion; the report framed the stake as a meaningful, previously underappreciated asset that lifted investor optimism. Zoom’s ‘hidden gem’ investment in Anthropic could be worth $2 billion to $4 billion, analysts say
• Positive Sentiment: Coverage in Barron’s amplified the same valuation view, reiterating the potential multi?billion upside of Zoom’s Anthropic stake and driving further investor interest. Zoom Stock Is Soaring. Its Investment in Anthropic Is a ‘Hidden Gem.
• Positive Sentiment: Unusual options activity: traders bought ~33,095 call contracts (about +154% vs typical daily call volume), signaling speculative bullish bets that likely amplified upward price momentum intraday.
• Positive Sentiment: Market momentum: multiple outlets noted Zoom hit a 52?week high, reflecting the combination of the Anthropic narrative and stronger near?term fundamentals. Zoom Video stock hits 52-week high at 91.43 USD
• Neutral Sentiment: Analyst price?target and narrative shifts: coverage notes analysts are revisiting Zoom’s story — some lifting targets on the Anthropic angle while others remain cautious, so follow subsequent analyst notes for conviction and magnitude of upgrades. Why The Story Behind Zoom Communications (ZM) Is Shifting With New Analyst Price Targets

Analyst Ratings Changes

Several research firms recently commented on ZM. Morgan Stanley raised their target price on Zoom Communications from $85.00 to $92.00 and gave the stock an “equal weight” rating in a research report on Tuesday, November 25th. UBS Group initiated coverage on Zoom Communications in a research report on Monday, October 20th. They set a “neutral” rating and a $85.00 target price for the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Zoom Communications in a research report on Monday, December 29th. Wedbush reissued an “outperform” rating and set a $95.00 price objective on shares of Zoom Communications in a research note on Tuesday, November 25th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $87.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Zoom Communications currently has an average rating of “Moderate Buy” and an average price target of $93.82.

Zoom Communications Price Performance

The stock’s 50-day moving average price is $85.54 and its 200-day moving average price is $81.80. The company has a market cap of $28.27 billion, a P/E ratio of 18.57, a PEG ratio of 7.71 and a beta of 0.87.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The business had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The firm’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.38 earnings per share. 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 expect that Zoom Communications, Inc. will post 2.93 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other Zoom Communications news, CFO Michelle Chang sold 8,417 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $86.54, for a total value of $728,407.18. Following the transaction, the chief financial officer directly owned 25,482 shares of the company’s stock, valued at approximately $2,205,212.28. The trade was a 24.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $86.01, for a total transaction of $212,874.75. Following the transaction, the director directly owned 145,219 shares in the company, valued at $12,490,286.19. This trade represents a 1.68% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 317,745 shares of company stock valued at $27,002,595. Corporate insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Elevation Point Wealth Partners LLC bought a new stake in Zoom Communications in the 2nd quarter worth about $27,000. REAP Financial Group LLC lifted its holdings in Zoom Communications by 181.7% during the second quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after purchasing an additional 229 shares during the last quarter. Toth Financial Advisory Corp purchased a new position in Zoom Communications in the 4th quarter valued at approximately $28,000. FNY Investment Advisers LLC bought a new stake in shares of Zoom Communications during the 2nd quarter valued at $31,000. Finally, Root Financial Partners LLC purchased a new position in Zoom Communications during the 3rd quarter valued at about $33,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

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.