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

Zoom Communications, Inc. (NASDAQ:ZM) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $109.50 and last traded at $109.10, with a volume of 4223285 shares. The stock had previously closed at $106.63.

More Zoom Communications News

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

• Positive Sentiment: Zoom named Russell Dicker as Chief Product Officer, strengthening product leadership and signaling execution focus on roadmap and AI-driven offerings. Zoom Appoints Russell Dicker as Chief Product Officer
• Positive Sentiment: Technical momentum: ZM cleared a cup?with?handle breakout and IBD upgraded its Relative Strength score into the 80s, which can attract momentum and retail/technical buyers. Zoom Stock Soars After Cup With Handle Breakout; Rating Upgraded
• Positive Sentiment: Product/market positioning: Zoom launched the “Solopreneur 50” program and released research on AI?powered solo businesses — a signal management is targeting new addressable markets (AI-enabled SMB/creator workflows). This supports longer-term revenue diversification beyond meetings. Zoom Solopreneur 50
• Positive Sentiment: Investor research suggests Zoom is transitioning from SMB to larger enterprise deals, which could support higher-quality revenue and margin stability if execution continues. Zoom: The Transition To Large Enterprise
• Neutral Sentiment: Relative valuation and peer comparisons: Several outlets published side?by?side analyses (Five9 vs Zoom) for value investors — useful for allocation decisions but not an immediate catalyst. FIVN or ZM: Which Is the Better Value Stock Right Now?
• Neutral Sentiment: Analyst/idea lists: Coverage noting Zoom as a beaten?down tech name that could rebound may support medium?term interest but represents opinion rather than fresh fundamental proof. 3 Beaten-Down Tech Stocks That Could Soar
• Negative Sentiment: Sector/headwind risk: Prominent market voices and commentary note a rotation out of high?beta cloud/software names amid rate and geopolitical uncertainty — a persistent headwind that can cap multiple expansion for ZM. Josh Brown now has just one software name in his ‘best stocks’ list

Analysts Set New Price Targets

Several brokerages have recently weighed in on ZM. Weiss Ratings raised shares of Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday. Citigroup raised shares of Zoom Communications from a “neutral” rating to a “buy” rating and raised their price target for the stock from $94.00 to $106.00 in a research note on Monday, January 12th. Sanford C. Bernstein decreased their price target on shares of Zoom Communications from $90.00 to $88.00 and set a “market perform” rating for the company in a research note on Thursday, February 26th. Benchmark decreased their price target on shares of Zoom Communications from $115.00 to $110.00 and set a “buy” rating for the company in a research note on Tuesday, February 24th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a research note on Friday, March 13th. Fourteen analysts have rated the stock with 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.com, Zoom Communications presently has an average rating of “Hold” and a consensus price target of $95.32.

Zoom Communications Stock Performance

The company has a market cap of $32.15 billion, a price-to-earnings ratio of 17.60, a P/E/G ratio of 6.10 and a beta of 1.00. The firm has a fifty day moving average price of $82.44 and a 200 day moving average price of $84.99.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.04). The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.23 billion. Zoom Communications had a net margin of 39.03% and a return on equity of 11.88%. The company’s quarterly revenue was up 5.3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.41 EPS. 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. On average, analysts expect that Zoom Communications, Inc. will post 3.94 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Michelle Chang sold 8,489 shares of the stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the completion of the sale, the chief financial officer owned 30,467 shares of the company’s stock, valued at approximately $2,477,576.44. This represents a 21.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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, COO Aparna Bawa sold 12,886 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $87.62, for a total value of $1,129,071.32. Following the completion of the sale, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at approximately $173,312.36. The trade was a 86.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 134,704 shares of company stock worth $11,298,844 in the last quarter. 10.78% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zoom Communications

Several hedge funds have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC lifted its holdings in Zoom Communications by 87.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 164,171 shares of the company’s stock valued at $13,249,000 after purchasing an additional 76,531 shares during the last quarter. Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in Zoom Communications during the 1st quarter valued at $13,781,000. Twin Capital Management Inc. acquired a new stake in Zoom Communications during the 1st quarter valued at $745,000. Bank of New York Mellon Corp lifted its holdings in Zoom Communications by 44.5% during the 1st quarter. Bank of New York Mellon Corp now owns 1,411,745 shares of the company’s stock valued at $113,490,000 after purchasing an additional 434,981 shares during the last quarter. Finally, Hillsdale Investment Management Inc. lifted its holdings in Zoom Communications by 18.7% during the 1st quarter. Hillsdale Investment Management Inc. now owns 14,600 shares of the company’s stock valued at $1,174,000 after purchasing an additional 2,300 shares during the last quarter. Institutional investors and hedge funds 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.