Zoom Communications (NASDAQ:ZM) Stock Rating Upgraded by KeyCorp

Zoom Communications (NASDAQ:ZM) was upgraded by research analysts at KeyCorp from an “underweight” rating to a “sector weight” rating in a report issued on Friday,Benzinga reports.

A number of other equities analysts have also weighed in on the stock. Citizens Jmp restated a “market perform” rating on shares of Zoom Communications in a research report on Wednesday. Mizuho boosted their price target on shares of Zoom Communications from $100.00 to $120.00 and gave the stock an “outperform” rating in a research report on Friday. Robert W. Baird boosted their price target on shares of Zoom Communications from $95.00 to $105.00 and gave the stock an “outperform” rating in a research report on Tuesday. Citigroup boosted their price target on shares of Zoom Communications from $106.00 to $122.00 and gave the stock a “buy” rating in a research report on Friday, May 15th. Finally, BTIG Research lowered their price target on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, February 26th. Fourteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $102.65.

Zoom Communications Stock Down 2.7%

ZM stock opened at $96.75 on Friday. The stock has a market capitalization of $28.51 billion, a P/E ratio of 15.60, a P/E/G ratio of 5.69 and a beta of 1.00. The firm has a 50-day simple moving average of $88.14 and a 200-day simple moving average of $86.59. Zoom Communications has a 52 week low of $69.15 and a 52 week high of $111.56.

Zoom Communications (NASDAQ:ZM) last released its earnings results on Thursday, May 21st. The company reported $1.55 EPS for the quarter, topping analysts’ consensus estimates of $1.41 by $0.14. The business had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 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 5.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, analysts expect that Zoom Communications will post 3.94 earnings per share for the current year.

Insider Buying and Selling

In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of the business’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $106.58, for a total value of $562,102.92. Following the transaction, the director directly owned 142,882 shares in the company, valued at $15,228,363.56. The trade was a 3.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Aparna Bawa sold 12,886 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $87.62, for a total transaction of $1,129,071.32. Following the completion of the transaction, the chief operating officer owned 1,978 shares in the company, valued at $173,312.36. The trade was a 86.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 144,329 shares of company stock worth $12,364,989 over the last ninety days. 11.51% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zoom Communications

Large investors have recently made changes to their positions in the stock. Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in shares of Zoom Communications by 10.5% in the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 238,753 shares of the company’s stock worth $19,697,000 after acquiring an additional 22,704 shares during the last quarter. Strive Asset Management LLC acquired a new position in shares of Zoom Communications in the 3rd quarter worth approximately $1,238,000. LSV Asset Management lifted its holdings in shares of Zoom Communications by 5.0% in the 3rd quarter. LSV Asset Management now owns 1,069,440 shares of the company’s stock worth $88,229,000 after acquiring an additional 50,579 shares during the last quarter. Krilogy Financial LLC acquired a new position in shares of Zoom Communications in the 3rd quarter worth approximately $1,963,000. Finally, Sherry Group Inc. acquired a new position in shares of Zoom Communications in the 4th quarter worth approximately $894,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom reported first-quarter EPS of $1.55, ahead of consensus, and revenue of about $1.24 billion, also topping estimates, suggesting demand held up better than expected. Zoom Communications (ZM) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Zoom raised full-year and next-quarter guidance, signaling management confidence that AI features and enterprise demand can support further growth and profitability. Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Enterprise revenue rose 7.2% year over year, and the enterprise net dollar expansion rate improved to 99%, indicating healthier customer retention and cross-sell momentum. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …
• Neutral Sentiment: Several previews and earnings recap articles focused on the same results, reinforcing the market’s attention on the quarter rather than introducing new catalysts. Zoom (ZM) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
• Negative Sentiment: Management noted ongoing competitive pressure and a slight uptick in churn, which could limit how much upside investors assign to the growth story. Zoom Communications Inc (ZM) Q1 2027 Earnings Call Highlights: Strong Revenue Growth and AI …

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.