Zoom Communications (NASDAQ:ZM) Hits New 52-Week High – Here’s Why

Zoom Communications, Inc. (NASDAQ:ZM)’s share price reached a new 52-week high on Friday . The company traded as high as $91.43 and last traded at $89.39, with a volume of 638481 shares traded. The stock had previously closed at $90.24.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Stifel Nicolaus lifted their target price on Zoom Communications from $80.00 to $90.00 and gave the stock a “hold” rating in a research report on Thursday, September 18th. JMP Securities reaffirmed a “market perform” rating on shares of Zoom Communications in a report on Thursday, September 18th. JPMorgan Chase & Co. increased their target price on Zoom Communications from $85.00 to $90.00 and gave the company a “neutral” rating in a report on Tuesday, November 25th. Piper Sandler restated a “neutral” rating and issued a $85.00 price target on shares of Zoom Communications in a report on Friday, August 22nd. Finally, Jefferies Financial Group lifted their price objective on shares of Zoom Communications from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Tuesday, November 25th. Eleven equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Zoom Communications has an average rating of “Hold” and a consensus target price of $92.43.

Zoom Communications Stock Performance

The firm has a market capitalization of $26.51 billion, a P/E ratio of 17.42, a price-to-earnings-growth ratio of 8.11 and a beta of 0.81. The firm has a 50 day moving average price of $83.45 and a two-hundred day moving average price of $80.13.

Zoom Communications (NASDAQ:ZM) last announced its earnings results on Monday, November 24th. The company reported $1.52 EPS for the quarter, beating the consensus estimate of $1.44 by $0.08. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the prior year, the business posted $1.38 earnings per share. Zoom Communications’s revenue was up 4.4% compared to the same quarter last year. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. Equities research analysts forecast that Zoom Communications, Inc. will post 2.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Zoom Communications news, insider Velchamy Sankarlingam sold 2,595 shares of Zoom Communications stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $87.84, for a total transaction of $227,944.80. Following the transaction, the insider owned 133,659 shares of the company’s stock, valued at $11,740,606.56. The trade was a 1.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Aparna Bawa sold 10,528 shares of the stock in a transaction that occurred on Thursday, October 16th. The stock was sold at an average price of $79.77, for a total transaction of $839,818.56. Following the completion of the sale, the chief operating officer directly owned 1,978 shares of the company’s stock, valued at $157,785.06. This trade represents a 84.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 389,373 shares of company stock valued at $32,325,274. 11.51% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

Institutional investors have recently bought and sold shares of the company. Elevation Point Wealth Partners LLC bought a new stake in Zoom Communications during the second quarter worth about $27,000. REAP Financial Group LLC grew its position in Zoom Communications by 181.7% during the 2nd quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock worth $28,000 after acquiring an additional 229 shares during the last quarter. GKV Capital Management Co. Inc. bought a new stake in shares of Zoom Communications during the first quarter worth $31,000. FNY Investment Advisers LLC bought a new stake in shares of Zoom Communications during the second quarter worth $31,000. Finally, Brooklyn Investment Group increased its stake in shares of Zoom Communications by 277.8% in the first quarter. Brooklyn Investment Group now owns 442 shares of the company’s stock valued at $33,000 after buying an additional 325 shares in the last quarter. 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.