Zoom Communications (NASDAQ:ZM) Shares Down 5.6% – What’s Next?

Zoom Communications, Inc. (NASDAQ:ZM)’s stock price dropped 5.6% during trading on Friday . The stock traded as low as $79.35 and last traded at $79.3120. Approximately 1,764,179 shares traded hands during trading, a decline of 57% from the average daily volume of 4,056,492 shares. The stock had previously closed at $84.03.

Analyst Upgrades and Downgrades

ZM has been the subject of several research analyst reports. BTIG Research dropped their price target on Zoom Communications from $105.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, February 26th. Needham & Company LLC restated a “buy” rating and set a $100.00 price target on shares of Zoom Communications in a research note on Friday, March 13th. Wall Street Zen lowered Zoom Communications from a “buy” rating to a “hold” rating in a research note on Saturday, March 7th. Piper Sandler upped their target price on Zoom Communications from $85.00 to $91.00 and gave the stock a “neutral” rating in a research report on Monday, January 5th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $115.00 target price on shares of Zoom Communications in a research report on Thursday, February 26th. Fourteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $95.32.

Zoom Communications Price Performance

The company has a 50-day moving average price of $82.57 and a two-hundred day moving average price of $83.94. The company has a market cap of $23.35 billion, a PE ratio of 12.78, a P/E/G ratio of 4.53 and a beta of 0.88.

Zoom Communications (NASDAQ:ZM) last issued its earnings results on Wednesday, February 25th. The company reported $1.44 earnings per share 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 company had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period in the previous year, the company earned $1.41 EPS. Zoom Communications’s quarterly revenue 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. On average, equities research analysts anticipate that Zoom Communications, Inc. will post 2.93 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Aparna Bawa sold 12,137 shares of the stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $81.37, for a total value of $987,587.69. Following the completion of the transaction, the chief operating officer owned 1,978 shares of the company’s stock, valued at approximately $160,949.86. This represents a 85.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Velchamy Sankarlingam sold 2,590 shares of the stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $78.24, for a total value of $202,641.60. Following the completion of the transaction, the insider directly owned 137,044 shares of the company’s stock, valued at $10,722,322.56. This represents a 1.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 107,231 shares of company stock valued at $9,086,680. 11.51% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Kestra Advisory Services LLC boosted its holdings in Zoom Communications by 2.0% in the fourth quarter. Kestra Advisory Services LLC now owns 5,928 shares of the company’s stock valued at $512,000 after purchasing an additional 116 shares during the last quarter. New York State Teachers Retirement System boosted its holdings in Zoom Communications by 0.5% in the fourth quarter. New York State Teachers Retirement System now owns 24,263 shares of the company’s stock valued at $2,094,000 after purchasing an additional 123 shares during the last quarter. Wynn Capital LLC boosted its holdings in Zoom Communications by 1.3% in the third quarter. Wynn Capital LLC now owns 10,429 shares of the company’s stock valued at $860,000 after purchasing an additional 130 shares during the last quarter. Root Financial Partners LLC boosted its holdings in Zoom Communications by 33.5% in the fourth quarter. Root Financial Partners LLC now owns 542 shares of the company’s stock valued at $47,000 after purchasing an additional 136 shares during the last quarter. Finally, MAI Capital Management boosted its holdings in Zoom Communications by 34.7% in the third quarter. MAI Capital Management now owns 579 shares of the company’s stock valued at $48,000 after purchasing an additional 149 shares during the last quarter. Hedge funds and other institutional investors own 66.54% of the company’s stock.

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.