Cantor Fitzgerald Reaffirms Neutral Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “neutral” rating reaffirmed by stock analysts at Cantor Fitzgerald in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $104.00 target price on the stock. Cantor Fitzgerald‘s target price would suggest a potential upside of 4.59% from the stock’s previous close.

Other research analysts have also recently issued research reports about the stock. Citizens Jmp reiterated a “market perform” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Yorkville Ives started coverage on Zoom Communications in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $120.00 price objective for the company. Oppenheimer raised Zoom Communications from a “market perform” rating to an “outperform” rating and set a $130.00 target price on the stock in a report on Wednesday. UBS Group decreased their target price on Zoom Communications from $115.00 to $112.00 and set a “neutral” rating on the stock in a report on Wednesday. Finally, Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Zoom Communications has a consensus rating of “Moderate Buy” and a consensus target price of $114.48.

Zoom Communications Price Performance

Shares of ZM traded up $1.98 on Wednesday, reaching $99.44. The company’s stock had a trading volume of 2,932,769 shares, compared to its average volume of 3,907,545. The stock has a market capitalization of $29.02 billion, a P/E ratio of 9.21, a PEG ratio of 4.51 and a beta of 1.03. The stock’s 50 day simple moving average is $96.77 and its two-hundred day simple moving average is $95.00. Zoom Communications has a 12-month low of $70.70 and a 12-month high of $114.74.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. Zoom Communications had a net margin of 65.19% and a return on equity of 10.86%. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.27 billion. During the same period in the previous year, the business posted $1.53 earnings per share. The firm’s quarterly revenue was up 4.9% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 6.080-6.120 EPS and its Q3 2027 guidance at 1.460-1.480 EPS. Analysts expect that Zoom Communications will post 4.27 earnings per share for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of Zoom Communications stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $99.26, for a total transaction of $758,842.70. Following the transaction, the insider owned 151,813 shares of the company’s stock, valued at $15,068,958.38. The trade was a 4.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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, Director Santiago Subotovsky sold 2,637 shares of Zoom Communications stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $93.74, for a total transaction of $247,192.38. Following the transaction, the director directly owned 121,786 shares in the company, valued at $11,416,219.64. This represents a 2.12% 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 71,209 shares of company stock worth $6,938,989 in the last 90 days. Insiders own 8.83% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Quadrant Capital Group LLC increased its stake in Zoom Communications by 2,161.0% in the 3rd quarter. Quadrant Capital Group LLC now owns 4,522 shares of the company’s stock worth $444,000 after buying an additional 4,322 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in Zoom Communications by 29.1% during the third quarter. Nisa Investment Advisors LLC now owns 10,484 shares of the company’s stock valued at $952,000 after acquiring an additional 2,364 shares during the period. Bank Pictet & Cie Europe AG raised its holdings in Zoom Communications by 5.9% during the third quarter. Bank Pictet & Cie Europe AG now owns 7,177 shares of the company’s stock valued at $651,000 after acquiring an additional 403 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd raised its holdings in Zoom Communications by 0.4% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 26,215 shares of the company’s stock valued at $2,380,000 after acquiring an additional 107 shares during the period. Finally, CWA Asset Management Group LLC lifted its position in shares of Zoom Communications by 10.0% in the third quarter. CWA Asset Management Group LLC now owns 106,383 shares of the company’s stock valued at $9,656,000 after acquiring an additional 9,698 shares in the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications News Roundup

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

• Positive Sentiment: AI platform expansion: Zoom introduced its Unified Context Layer and additional AI tools designed to convert meeting and customer-interaction data into completed work across Zoom Workplace, customer experience, developer tools, and events. The offerings support management’s strategy of broadening Zoom from a videoconferencing provider into an AI-focused business platform. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Oppenheimer upgrade: Oppenheimer raised Zoom to Outperform from Perform and set a $130 price target, citing strong traction and impressive potential for the company’s newer AI services. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Broadly favorable analyst view: RBC reaffirmed an Outperform rating with a $130 target, while Rosenblatt and BTIG maintained Buy ratings with $130 and $125 targets, respectively. The analysts’ optimism points to potential upside from enterprise adoption, new products, and revenue reacceleration. Zoom Communications revenue reacceleration supported by enterprise growth
• Positive Sentiment: Long-term growth strategy: At its investor session, Zoom outlined its AI initiatives, new revenue streams, and long-term financial targets, giving investors more visibility into how the company intends to monetize its broader platform. Zoom investor session transcript
• Neutral Sentiment: Remaining caution: Cantor Fitzgerald maintained a Neutral rating with a $104 target, suggesting that investors may require evidence that AI products translate into durable sales and faster growth. Zoom also faces execution and competitive risks as it shifts beyond its core meetings business. Cantor Fitzgerald maintains neutral rating on Zoom

Zoom Communications Company Profile

Zoom Communications, Inc (NASDAQ: ZM) is a communications technology company that provides cloud-based collaboration and customer engagement solutions. Founded in 2011 and headquartered in San Jose, California, the company is best known for Zoom Meetings, its videoconferencing platform for online meetings, webinars and virtual events.

The company’s product portfolio also includes Zoom Phone, a cloud-based business phone service; Zoom Team Chat; Zoom Rooms for hybrid meeting spaces; Zoom Whiteboard; and Zoom Contact Center.