Zoom Communications (NASDAQ:ZM) Stock Price Expected to Rise, Citigroup Analyst Says

Zoom Communications (NASDAQ:ZM) had its price objective raised by equities research analysts at Citigroup from $122.00 to $126.00 in a report issued on Tuesday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s target price indicates a potential upside of 25.89% from the stock’s current price.

Other research analysts have also recently issued reports about the company. Piper Sandler raised their target price on Zoom Communications from $91.00 to $107.00 and gave the stock a “neutral” rating in a research report on Friday. Zacks Research cut Zoom Communications from a “strong-buy” rating to a “hold” rating in a research report on Friday, February 13th. Morgan Stanley raised their target price on Zoom Communications from $92.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Friday. Wells Fargo & Company raised their target price on Zoom Communications from $90.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, Jefferies Financial Group raised their target price on Zoom Communications from $105.00 to $118.00 and gave the stock a “buy” rating in a research report on Friday. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $108.15.

Zoom Communications Stock Performance

Shares of ZM traded down $5.55 during mid-day trading on Tuesday, hitting $100.09. The company’s stock had a trading volume of 5,405,518 shares, compared to its average volume of 4,452,834. Zoom Communications has a one year low of $69.15 and a one year high of $113.73. The firm has a market capitalization of $29.49 billion, a PE ratio of 14.70, a price-to-earnings-growth ratio of 6.04 and a beta of 1.00. The stock’s 50-day moving average is $89.35 and its two-hundred day moving average is $86.88.

Zoom Communications (NASDAQ:ZM) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. The company had revenue of $1.24 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Zoom Communications had a return on equity of 12.06% and a net margin of 41.99%.Zoom Communications’s revenue for the quarter was up 5.5% compared to the same quarter last year. During the same period in the prior year, the business 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. Analysts expect that Zoom Communications will post 3.94 EPS for the current fiscal year.

Insider Activity

In other Zoom Communications news, Director Santiago Subotovsky sold 5,274 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $106.58, for a total transaction of $562,102.92. Following the completion of the transaction, the director directly owned 142,882 shares in the company, valued at $15,228,363.56. This represents a 3.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Aparna Bawa sold 12,886 shares of the firm’s stock in a transaction 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 owned 1,978 shares of the company’s stock, valued at approximately $173,312.36. This trade represents a 86.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 144,329 shares of company stock valued at $12,364,989. 11.51% of the stock is owned by company insiders.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Zoom Communications by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company’s stock valued at $2,327,002,000 after buying an additional 1,029,623 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of Zoom Communications by 43.9% in the fourth quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company’s stock valued at $1,052,328,000 after buying an additional 3,718,186 shares in the last quarter. State Street Corp increased its stake in shares of Zoom Communications by 5.0% in the fourth quarter. State Street Corp now owns 7,582,924 shares of the company’s stock valued at $654,331,000 after buying an additional 363,776 shares in the last quarter. Norges Bank acquired a new stake in shares of Zoom Communications in the fourth quarter valued at $509,788,000. Finally, Geode Capital Management LLC increased its position in Zoom Communications by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company’s stock worth $445,254,000 after purchasing an additional 152,862 shares during the period. 66.54% of the stock is currently owned by institutional investors and hedge funds.

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.