Needham & Company LLC Reaffirms “Buy” Rating for Zoom Communications (NASDAQ:ZM)

Zoom Communications (NASDAQ:ZM)‘s stock had its “buy” rating reiterated by equities researchers at Needham & Company LLC in a report issued on Friday,Benzinga reports. They presently have a $100.00 target price on the stock. Needham & Company LLC’s price objective points to a potential upside of 34.95% from the company’s previous close.

Other research analysts have also recently issued research reports about the stock. Wedbush restated an “outperform” rating and set a $95.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Cantor Fitzgerald reissued a “neutral” rating and set a $87.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. Jefferies Financial Group upped their target price on shares of Zoom Communications from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Tuesday, November 25th. JPMorgan Chase & Co. raised their target price on shares of Zoom Communications from $85.00 to $90.00 and gave the company a “neutral” rating in a report on Tuesday, November 25th. Finally, Zacks Research cut shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a report on Friday, February 13th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $95.32.

Zoom Communications Price Performance

Shares of Zoom Communications stock opened at $74.10 on Friday. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $97.58. The stock has a market cap of $21.94 billion, a P/E ratio of 11.95, a P/E/G ratio of 4.24 and a beta of 0.93. The stock’s 50 day simple moving average is $85.41 and its 200-day simple moving average is $84.54.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the business posted $1.41 earnings per share. Zoom Communications’s revenue for the quarter was up 5.3% on a year-over-year basis. Zoom Communications has set its FY 2027 guidance at 5.770-5.810 EPS and its Q1 2027 guidance at 1.400-1.420 EPS. As a group, research analysts expect that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other news, CEO Eric S. Yuan sold 73,378 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $87.29, for a total value of $6,405,165.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Velchamy Sankarlingam sold 7,568 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $86.55, for a total value of $655,010.40. Following the sale, the insider directly owned 136,182 shares of the company’s stock, valued at approximately $11,786,552.10. This represents a 5.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 183,084 shares of company stock valued at $15,704,721 over the last 90 days. 11.51% of the stock is owned by insiders.

Institutional Trading of Zoom Communications

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. NewEdge Advisors LLC raised its holdings in Zoom Communications by 16.8% during the first quarter. NewEdge Advisors LLC now owns 8,009 shares of the company’s stock worth $591,000 after purchasing an additional 1,153 shares during the last quarter. Intech Investment Management LLC grew its holdings in Zoom Communications by 59.1% in the first quarter. Intech Investment Management LLC now owns 16,785 shares of the company’s stock valued at $1,238,000 after purchasing an additional 6,235 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Zoom Communications by 82.0% in the first quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after buying an additional 397 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Zoom Communications during the 2nd quarter worth $217,000. Finally, Envestnet Asset Management Inc. raised its stake in shares of Zoom Communications by 68.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 49,370 shares of the company’s stock worth $3,850,000 after buying an additional 20,017 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Communications News Roundup

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

• Positive Sentiment: Zoom continues to push AI deeper into enterprise workflows — new virtual agent and workflow automation features (including PCI Pal payments support and broader third‑party interoperability) make Zoom more central to customer service and back‑office use cases, which supports revenue expansion potential. Zoom AI Push Aims To Make Platform Core To Enterprise Workflows
• Positive Sentiment: Security and fraud protection for Zoom Contact Center improved via Pindrop integration (real‑time deepfake detection and voice authentication). This reduces enterprise implementation risk and can ease sales into regulated verticals. Pindrop Zoom Integration Embeds Real-Time Deepfake Detection and Identity Verification in Zoom Contact Center
• Positive Sentiment: Industry momentum: Enterprise Connect’s successful Las Vegas debut highlights demand and partner visibility for enterprise communications players like Zoom — positive for pipeline and partner relationships. Enterprise Connect Debuts in Las Vegas with Record Energy, Sets Return for 2027
• Neutral Sentiment: Analyst backing: Needham reaffirmed a Buy and set a $100 target (≈35% upside from current levels), supporting upside narrative, but the broader consensus remains split (many Holds). Analyst views are a mixed but important sentiment driver. Benzinga
• Neutral Sentiment: Third‑party competition and ecosystem: Otter.ai (speech/notes AI) named a new CRO to accelerate enterprise adoption — a reminder that specialized transcription/AI tools are competing for the same corporate workflows Zoom targets. This raises competitive intensity but doesn’t directly undercut Zoom’s integrated platform advantages. Otter.ai Appoints Kenny Scannell as Chief Revenue Officer to Accelerate Global Growth and Enterprise Adoption of AI
• Negative Sentiment: Insider selling: Senior executive Velchamy Sankarlingam sold 2,590 shares (filed 3/10), which can be read negatively by some investors even though the sale is small relative to his holdings. Zoom Communications (NASDAQ:ZM) Insider Velchamy Sankarlingam Sells 2,590 Shares
• Positive Sentiment: Value argument after earnings pullback: Commentary from The Motley Fool highlights that Zoom’s network effects and enterprise positioning lessen near‑term AI disruption risk and that the stock’s post‑earnings decline presents a value opportunity to some long‑term investors. This Software Stock Looks Like an Incredible Value After Its Post-Earnings Sell-Off

About Zoom Communications

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.