Zoom Communications (NASDAQ:ZM) Earns Outperform Rating from Wedbush

Zoom Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reiterated by Wedbush in a research report issued to clients and investors on Tuesday,Benzinga reports. They presently have a $95.00 target price on the stock. Wedbush’s price objective indicates a potential upside of 12.52% from the company’s current price.

Other analysts have also issued research reports about the stock. Wall Street Zen lowered shares of Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. Mizuho upped their price objective on shares of Zoom Communications from $95.00 to $100.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 26th. Piper Sandler reiterated a “neutral” rating and issued a $85.00 price objective on shares of Zoom Communications in a research note on Friday, August 22nd. Wells Fargo & Company began coverage on shares of Zoom Communications in a research report on Tuesday, September 30th. They set an “equal weight” rating and a $90.00 target price on the stock. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $90.00 target price on shares of Zoom Communications in a report on Tuesday. Ten equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Zoom Communications presently has an average rating of “Hold” and a consensus price target of $92.43.

Zoom Communications Price Performance

Shares of Zoom Communications stock opened at $84.43 on Tuesday. Zoom Communications has a one year low of $64.41 and a one year high of $91.04. The firm has a market capitalization of $25.54 billion, a price-to-earnings ratio of 16.43, a PEG ratio of 11.72 and a beta of 0.79. The business has a 50-day simple moving average of $82.57 and a 200 day simple moving average of $79.72.

Zoom Communications (NASDAQ:ZM) last announced its quarterly earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.08. Zoom Communications had a return on equity of 12.33% and a net margin of 33.17%.The business had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same quarter in the prior year, the company earned $1.38 earnings per share. The company’s quarterly revenue was up 4.4% on a year-over-year basis. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS. Q4 2026 guidance at 1.480-1.490 EPS. On average, sell-side analysts expect that Zoom Communications will post 2.93 EPS for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, Director Santiago Subotovsky sold 2,475 shares of the stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $84.15, for a total transaction of $208,271.25. Following the sale, the director owned 150,169 shares in the company, valued at $12,636,721.35. This represents a 1.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Velchamy Sankarlingam sold 7,660 shares of the firm’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 $628,120.00. Following the completion of the transaction, the insider directly owned 132,795 shares of the company’s stock, valued at $10,889,190. The trade was a 5.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 389,373 shares of company stock worth $32,311,579 in the last ninety days. Insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Institutional investors and hedge funds have recently modified their holdings of the company. CIBC Bancorp USA Inc. bought a new stake in Zoom Communications during the 3rd quarter worth approximately $731,000. Ariadne Wealth Management LP purchased a new position in shares of Zoom Communications during the 3rd quarter valued at $355,000. Caerus Investment Advisors LLC bought a new position in shares of Zoom Communications in the third quarter worth $920,000. Sunbelt Securities Inc. increased its holdings in shares of Zoom Communications by 26,312.0% in the third quarter. Sunbelt Securities Inc. now owns 6,603 shares of the company’s stock worth $545,000 after purchasing an additional 6,578 shares during the period. Finally, Captrust Financial Advisors raised its position in shares of Zoom Communications by 58.9% in the third quarter. Captrust Financial Advisors now owns 35,998 shares of the company’s stock worth $2,970,000 after buying an additional 13,341 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.