Zoom Communications (NASDAQ:ZM) Rating Lowered to “Buy” at Wall Street Zen

Zoom Communications (NASDAQ:ZM) was downgraded by stock analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research note issued on Saturday.

A number of other equities research analysts have also recently commented on ZM. KeyCorp reduced their price target on shares of Zoom Communications from $73.00 to $69.00 and set an “underweight” rating for the company in a report on Friday, August 22nd. Wells Fargo & Company assumed coverage on Zoom Communications in a research note on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 target price for the company. Morgan Stanley initiated coverage on Zoom Communications in a research report on Tuesday, October 21st. They issued an “equal weight” rating and a $85.00 target price for the company. Royal Bank Of Canada reiterated an “outperform” rating and issued a $100.00 price target on shares of Zoom Communications in a report on Thursday, September 18th. Finally, Cantor Fitzgerald reissued a “neutral” rating and issued a $87.00 price objective on shares of Zoom Communications in a research note on Thursday, September 18th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $91.96.

Zoom Communications Stock Up 0.2%

Shares of NASDAQ ZM opened at $84.22 on Friday. The company has a market capitalization of $25.48 billion, a PE ratio of 22.22, a P/E/G ratio of 11.47 and a beta of 0.79. Zoom Communications has a twelve month low of $64.41 and a twelve month high of $92.80. The firm has a fifty day simple moving average of $83.15 and a 200 day simple moving average of $79.57.

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

Insider Activity at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,660 shares of the stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $82.00, for a total value of $628,120.00. Following the completion of the sale, the insider owned 132,795 shares in the company, valued at approximately $10,889,190. This trade represents a 5.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Michelle Chang sold 33,956 shares of the business’s stock in a transaction on Friday, October 10th. The stock was sold at an average price of $82.00, for a total value of $2,784,392.00. Following the completion of the transaction, the chief financial officer directly owned 20,539 shares in the company, valued at approximately $1,684,198. This represents a 62.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 321,470 shares of company stock valued at $26,684,150 over the last three months. Insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Hedge funds have recently made changes to their positions in the business. SouthState Corp bought a new position in Zoom Communications during the first quarter valued at about $25,000. Elevation Point Wealth Partners LLC purchased a new position in Zoom Communications in the second quarter valued at about $27,000. REAP Financial Group LLC grew its position 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 acquiring an additional 229 shares during the period. GKV Capital Management Co. Inc. bought a new position in shares of Zoom Communications during the 1st quarter valued at approximately $31,000. Finally, FNY Investment Advisers LLC purchased a new stake in shares of Zoom Communications during the 2nd quarter worth approximately $31,000. 66.54% of the stock is currently owned by institutional investors.

About Zoom Communications

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.