Zoom Communications (NASDAQ:ZM) Earns “Neutral” Rating from Cantor Fitzgerald

Zoom Communications (NASDAQ:ZM)‘s stock had its “neutral” rating reaffirmed by equities researchers at Cantor Fitzgerald in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $104.00 price objective on the stock. Cantor Fitzgerald‘s price objective would suggest a potential upside of 6.71% from the stock’s previous close.

A number of other equities research analysts have also weighed in on the stock. BTIG Research reissued a “buy” rating and set a $125.00 target price on shares of Zoom Communications in a report on Wednesday. KeyCorp reaffirmed a “sector weight” rating on shares of Zoom Communications in a research note on Wednesday, August 26th. Morgan Stanley lifted their price target on shares of Zoom Communications from $105.00 to $107.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 26th. Needham & Company LLC reissued a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday, August 26th. Finally, Bank of America assumed coverage on Zoom Communications in a research report on Wednesday, August 19th. They set a “buy” rating and a $130.00 target price for the company. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $114.61.

Zoom Communications Trading Down 0.1%

Shares of ZM stock opened at $97.46 on Wednesday. The business’s 50-day moving average price is $96.88 and its 200-day moving average price is $94.88. Zoom Communications has a 12 month low of $70.70 and a 12 month high of $114.74. The firm has a market capitalization of $28.44 billion, a price-to-earnings ratio of 9.02, a PEG ratio of 4.51 and a beta of 1.03.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings results on Tuesday, August 25th. The company reported $1.55 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.07. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.53 earnings per share. 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. On average, sell-side analysts predict that Zoom Communications will post 4.27 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Velchamy Sankarlingam sold 7,645 shares of the firm’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $99.26, for a total value of $758,842.70. Following the transaction, the insider owned 151,813 shares of the company’s stock, valued at approximately $15,068,958.38. This trade represents a 4.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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, Director Santiago Subotovsky sold 7,911 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $101.33, for a total transaction of $801,621.63. Following the completion of the transaction, the director directly owned 127,060 shares in the company, valued at approximately $12,874,989.80. The trade was a 5.86% 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. Over the last three months, insiders sold 71,209 shares of company stock valued at $6,938,989. 8.83% of the stock is currently owned by insiders.

Institutional Trading of Zoom Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pacer Advisors Inc. lifted its holdings in shares of Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock valued at $208,680,000 after purchasing an additional 253,181 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in Zoom Communications by 4.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock worth $189,051,000 after buying an additional 94,043 shares in the last quarter. Bank of America Corp DE grew its holdings in Zoom Communications by 50.5% during the first quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock worth $142,108,000 after buying an additional 592,899 shares in the last quarter. Bank of New York Mellon Corp raised its position in Zoom Communications by 44.5% in 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 buying an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP raised its position in Zoom Communications by 2.8% in the 1st quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock valued at $109,531,000 after buying an additional 36,657 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Key Zoom Communications News

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

• Positive Sentiment: Oppenheimer upgraded Zoom Communications (ZM) from “market perform” to “outperform” and set a $130 price target, citing a more constructive outlook for the stock.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating with a $130 target, while BTIG Research maintained its “buy” rating and $125 target. The targets point to substantial potential appreciation from current levels.
• Positive Sentiment: At Zoomtopia, the company introduced a Unified Context Layer and additional AI-powered products intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools, and events. The initiatives support management’s effort to expand Zoom beyond video conferencing and create new revenue opportunities. Zoom AI strategy announcement
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, adding capabilities related to proof of human access for business customers. The partnership could strengthen Zoom’s ecosystem and address authentication needs as AI-generated content becomes more prevalent. Tools for Humanity partnership
• Neutral Sentiment: Cantor Fitzgerald reaffirmed its “neutral” rating but increased or maintained its target at $104, suggesting limited upside relative to the more bullish analyst forecasts.
• Neutral Sentiment: Investor commentary is focusing on Zoom’s AI-first repositioning, cash-rich balance sheet, and potential to become a broader workplace platform. These arguments may support valuation, but execution and the company’s relatively modest growth remain important risks. Zoom investor session transcript

About Zoom Communications

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.