Zoom Communications (NASDAQ:ZM) Cut to Hold at Wall Street Zen

Wall Street Zen lowered shares of Zoom Communications (NASDAQ:ZM) from a buy rating to a hold rating in a report published on Saturday morning.

Other analysts also recently issued research reports about the company. KeyCorp upped their target price on Zoom Communications from $69.00 to $74.00 and gave the stock an “underweight” rating in a research note on Thursday, February 26th. Sanford C. Bernstein decreased their price target on Zoom Communications from $90.00 to $88.00 and set a “market perform” rating for the company in a report on Thursday, February 26th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $100.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 target price for the company in a report on Thursday, February 5th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zoom Communications presently has a consensus rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Stock Down 0.6%

Shares of Zoom Communications stock opened at $77.06 on Friday. The company has a market cap of $22.82 billion, a P/E ratio of 12.43, a PEG ratio of 4.42 and a beta of 0.93. The firm’s 50 day moving average price is $86.22 and its 200-day moving average price is $84.72. Zoom Communications has a 52-week low of $64.41 and a 52-week high of $97.58.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the business earned $1.41 earnings per share. Zoom Communications’s revenue was up 5.3% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, equities research analysts forecast that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Santiago Subotovsky sold 2,475 shares of the company’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $77.42, for a total transaction of $191,614.50. Following the completion of the sale, the director owned 153,442 shares of the company’s stock, valued at $11,879,479.64. This represents a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,568 shares of the firm’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $86.55, for a total transaction of $655,010.40. Following the completion of the transaction, the insider directly owned 136,182 shares in the company, valued at approximately $11,786,552.10. This represents a 5.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 183,089 shares of company stock valued at $15,730,024. 10.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Advocate Investing Services LLC purchased a new position in Zoom Communications during the fourth quarter worth approximately $26,000. Elevation Point Wealth Partners LLC purchased a new position in shares of Zoom Communications during the 2nd quarter worth $27,000. Strive Financial Group LLC acquired a new position in shares of Zoom Communications during the 4th quarter valued at about $27,000. Toth Financial Advisory Corp purchased a new stake in shares of Zoom Communications in the fourth quarter valued at about $28,000. Finally, Root Financial Partners LLC acquired a new stake in Zoom Communications during the third quarter worth about $33,000. 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.