Zoom Communications (NASDAQ:ZM) Cut to Hold at Zacks Research

Zacks Research lowered shares of Zoom Communications (NASDAQ:ZM) from a strong-buy rating to a hold rating in a research report report published on Monday morning,Zacks.com reports.

A number of other equities analysts have also weighed in on ZM. UBS Group assumed coverage on Zoom Communications in a research report on Monday, October 20th. They issued a “neutral” rating and a $85.00 price target for the company. Stifel Nicolaus upped their price objective on shares of Zoom Communications from $80.00 to $90.00 and gave the company a “hold” rating in a research note on Thursday, September 18th. Benchmark raised their target price on shares of Zoom Communications from $102.00 to $110.00 and gave the stock a “buy” rating in a report on Thursday, September 18th. William Blair reissued an “outperform” rating on shares of Zoom Communications in a research report on Tuesday, September 30th. Finally, JMP Securities restated a “market perform” rating on shares of Zoom Communications in a research report on Thursday, September 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $91.96.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $84.70 on Monday. The stock has a market capitalization of $25.63 billion, a price-to-earnings ratio of 22.35, a PEG ratio of 11.54 and a beta of 0.79. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $92.80. The company has a 50 day moving average price of $83.12 and a 200 day moving average price of $79.48.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings data on Thursday, August 21st. The company reported $0.99 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.39). The company had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.20 billion. Zoom Communications had a net margin of 24.99% and a return on equity of 11.91%. Zoom Communications’s revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the company posted $1.39 EPS. Zoom Communications has set its FY 2026 guidance at 5.810-5.840 EPS. Q3 2026 guidance at 1.420-1.44 EPS. On average, sell-side analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Eric S. Yuan sold 73,383 shares of Zoom Communications stock in a transaction that occurred on Wednesday, October 22nd. The stock was sold at an average price of $82.65, for a total transaction of $6,065,104.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Santiago Subotovsky sold 2,475 shares of the business’s stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $80.78, for a total transaction of $199,930.50. Following the completion of the sale, the director directly owned 152,644 shares of the company’s stock, valued at approximately $12,330,582.32. The trade was a 1.60% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 321,470 shares of company stock worth $26,684,150 in the last 90 days. Corporate insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Large investors have recently modified their holdings of the business. SouthState Corp bought a new stake in shares of Zoom Communications during the 1st quarter worth $25,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Zoom Communications in the 2nd quarter valued at approximately $27,000. REAP Financial Group LLC grew its holdings in shares of Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after purchasing an additional 229 shares during the last quarter. GKV Capital Management Co. Inc. acquired a new position in Zoom Communications during the 1st quarter worth approximately $31,000. Finally, FNY Investment Advisers LLC bought a new position in Zoom Communications in the 2nd quarter valued at approximately $31,000. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications Company Profile

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.