Zoom Communications’ (ZM) “Neutral” Rating Reiterated at Cantor Fitzgerald

Zoom Communications (NASDAQ:ZM)‘s stock had its “neutral” rating reaffirmed by stock analysts at Cantor Fitzgerald in a note issued to investors on Wednesday, Benzinga reports. They presently have a $104.00 target price on the stock. Cantor Fitzgerald‘s price target would suggest a potential upside of 3.53% from the company’s previous close.

Several other equities research analysts have also recently weighed in on ZM. Weiss Ratings upgraded Zoom Communications from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Jefferies Financial Group dropped their price target on Zoom Communications from $118.00 to $116.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. UBS Group restated a “neutral” rating and set a $112.00 price target on shares of Zoom Communications in a research note on Wednesday. Sanford C. Bernstein restated a “market perform” rating and issued a $108.00 price objective on shares of Zoom Communications in a report on Wednesday, August 26th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $130.00 price objective on shares of Zoom Communications in a research note on Wednesday, August 26th. Sixteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $114.48.

Zoom Communications Trading Up 3.1%

Shares of Zoom Communications stock traded up $3.00 on Wednesday, hitting $100.46. 1,149,086 shares of the company traded hands, compared to its average volume of 3,898,296. The company has a market cap of $29.31 billion, a PE ratio of 9.28, a PEG ratio of 4.51 and a beta of 1.03. The stock’s 50 day moving average price is $96.88 and its 200-day moving average price is $94.88. Zoom Communications has a 52 week low of $70.70 and a 52 week high of $114.74.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Tuesday, August 25th. The company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.07. Zoom Communications had a return on equity of 10.86% and a net margin of 65.19%. The company had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the prior year, the firm earned $1.53 earnings per share. Zoom Communications’s 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. As a group, research analysts anticipate that Zoom Communications will post 4.27 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Eric Yuan sold 12,100 shares of Zoom Communications stock in a transaction on Monday, October 5th. The stock was sold at an average price of $93.74, for a total value of $1,134,254.00. Following the transaction, the chief executive officer directly owned 22,998 shares in the company, valued at approximately $2,155,832.52. This trade represents a 34.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Herbert Raymond Mcmaster sold 3,000 shares of the business’s stock in a transaction on Thursday, October 8th. The stock was sold at an average price of $94.71, for a total value of $284,130.00. Following the completion of the transaction, the director directly owned 8,479 shares of the company’s stock, valued at approximately $803,046.09. The trade was a 26.13% 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. Insiders have sold a total of 71,209 shares of company stock valued at $6,938,989 over the last ninety days. Company insiders own 8.83% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

A number of institutional investors have recently added to or reduced their stakes in ZM. Pacer Advisors Inc. raised its holdings in Zoom Communications by 10.8% in the first quarter. Pacer Advisors Inc. now owns 2,595,840 shares of the company’s stock worth $208,680,000 after purchasing an additional 253,181 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Zoom Communications by 4.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,352,126 shares of the company’s stock valued at $189,051,000 after buying an additional 94,043 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Zoom Communications by 50.5% in the 1st quarter. Bank of America Corp DE now owns 1,767,728 shares of the company’s stock valued at $142,108,000 after buying an additional 592,899 shares in the last quarter. Bank of New York Mellon Corp grew its position in shares of 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 worth $113,490,000 after buying an additional 434,981 shares during the last quarter. Finally, First Trust Advisors LP grew its position in shares of Zoom Communications by 2.8% in the 1st quarter. First Trust Advisors LP now owns 1,362,501 shares of the company’s stock worth $109,531,000 after buying an additional 36,657 shares during the last quarter. Institutional investors own 66.54% of the company’s stock.

Key Stories Impacting Zoom Communications

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

• Positive Sentiment: Oppenheimer upgraded Zoom to Outperform from Market Perform and set a $130 price target, citing traction for the company’s newer AI services after reviewing its Zoomtopia strategy. The target implies roughly 30% upside from recent trading levels. Zoom Video upgraded at Oppenheimer on AI platform traction
• Positive Sentiment: Several other firms maintained bullish views: Royal Bank of Canada reaffirmed an Outperform rating with a $130 target, Rosenblatt reiterated Buy with a $130 target, and BTIG maintained Buy with a $125 target. The concentration of targets above the current share price supports the positive sentiment.
• Positive Sentiment: At Zoomtopia, Zoom introduced a Unified Context Layer and additional AI capabilities intended to convert meeting conversations into completed work across Zoom Workplace, customer experience, developer tools and events. Investors may view these offerings as potential sources of new revenue and improved customer retention. Zoom advances its AI strategy with a new Unified Context Layer
• Positive Sentiment: Tools for Humanity joined Zoom’s ISV Exchange Program, expanding potential business use cases involving proof-of-human access as companies adopt AI tools. Tools for Humanity joins Zoom ISV Exchange Program

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.