Zoom Communications (NASDAQ:ZM) Upgraded by Citigroup to Buy Rating

Citigroup upgraded shares of Zoom Communications (NASDAQ:ZM) from a neutral rating to a buy rating in a report published on Monday, MarketBeat.com reports. They currently have $106.00 target price on the stock, up from their previous target price of $94.00.

ZM has been the topic of several other research reports. Weiss Ratings restated a “buy (b-)” rating on shares of Zoom Communications in a report on Monday, December 29th. Wall Street Zen cut Zoom Communications from a “strong-buy” rating to a “buy” rating in a research note on Saturday, November 15th. Stifel Nicolaus upped 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. Sanford C. Bernstein reiterated a “market perform” rating and set a $90.00 target price on shares of Zoom Communications in a report on Tuesday, November 25th. Finally, JPMorgan Chase & Co. upped their price target on Zoom Communications from $85.00 to $90.00 and gave the stock a “neutral” rating in a report on Tuesday, November 25th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $93.82.

Zoom Communications Price Performance

NASDAQ ZM opened at $86.75 on Monday. The firm has a market capitalization of $25.69 billion, a P/E ratio of 16.88, a P/E/G ratio of 7.65 and a beta of 0.87. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $91.43. The business’s 50-day simple moving average is $85.46 and its 200-day simple moving average is $81.36.

Zoom Communications (NASDAQ:ZM) last posted its earnings results on Monday, November 24th. The company reported $1.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.21 billion. Zoom Communications had a net margin of 33.17% and a return on equity of 12.20%. The company’s revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.38 EPS. 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. On average, equities research analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Eric S. Yuan sold 73,383 shares of the 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 is available through the SEC website. Also, Director Santiago Subotovsky sold 2,475 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $86.01, for a total transaction of $212,874.75. Following the sale, the director directly owned 145,219 shares of the company’s stock, valued at $12,490,286.19. The trade was a 1.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 387,443 shares of company stock worth $32,643,598. Company insiders own 10.78% of the company’s stock.

Institutional Trading of Zoom Communications

Several institutional investors have recently added to or reduced their stakes in the stock. E. Ohman J or Asset Management AB acquired a new position in Zoom Communications during the 4th quarter worth $781,000. Inspirion Wealth Advisors LLC bought a new position in shares of Zoom Communications during the fourth quarter worth about $216,000. TABR Capital Management LLC acquired a new position in Zoom Communications in the fourth quarter worth about $3,874,000. True Wealth Design LLC increased its holdings in Zoom Communications by 44.8% in the fourth quarter. True Wealth Design LLC now owns 3,304 shares of the company’s stock valued at $285,000 after buying an additional 1,022 shares during the last quarter. Finally, Regent Peak Wealth Advisors LLC acquired a new stake in Zoom Communications during the fourth quarter valued at approximately $213,000. 66.54% of the stock is owned by institutional investors and hedge funds.

Zoom Communications News Roundup

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

• Positive Sentiment: Citi upgraded ZM from Neutral to Buy and raised its price target to $106 (from $94), citing fresh momentum tied to AI growth bets — this upgrade and higher target are a clear catalyst for the stock’s upward move. Citi upgrade
• Positive Sentiment: Coverage noting Citi’s view that AI-related product traction is building at Zoom — headlines and analyst notes helped drive intraday buying. Citi momentum story
• Positive Sentiment: Multiple outlets report the Citi upgrade and link it directly to AI growth expectations, amplifying investor interest and volume. News roundup
• Neutral Sentiment: Zoom announced an education-focused AI literacy initiative for students; this is positive for brand and product adoption long-term but is not an immediate revenue driver. AI literacy program
• Neutral Sentiment: Analyst roundups and feature pieces (Zacks, Benzinga) are revisiting Zoom as a post-pandemic recovery/AI play — helpful for sentiment but mixed in conviction. Zacks piece Benzinga analysts
• Neutral Sentiment: Reported short interest data is effectively negligible/confusing (zeros and NaN), so there’s no clear short-squeeze signal backing the move. Short interest note

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company’s platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom’s product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.