Zoom Communications’ (ZM) “Buy” Rating Reaffirmed at Rosenblatt Securities

Rosenblatt Securities reaffirmed their buy rating on shares of Zoom Communications (NASDAQ:ZM) in a report released on Thursday,Benzinga reports. They currently have a $115.00 price target on the stock.

ZM has been the topic of several other research reports. Zacks Research downgraded shares of Zoom Communications from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 13th. Jefferies Financial Group raised their price objective 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. Wall Street Zen lowered Zoom Communications from a “strong-buy” rating to a “buy” rating in a research report on Saturday, November 15th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $90.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Finally, Citizens Jmp reissued a “market perform” rating on shares of Zoom Communications in a research note on Tuesday. Fourteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Zoom Communications has an average rating of “Hold” and an average price target of $95.32.

Zoom Communications Price Performance

NASDAQ:ZM opened at $75.54 on Thursday. The firm has a market capitalization of $22.37 billion, a price-to-earnings ratio of 12.18, a PEG ratio of 7.65 and a beta of 0.90. The business has a 50 day simple moving average of $87.95 and a 200-day simple moving average of $84.36. Zoom Communications has a 1 year low of $64.41 and a 1 year high of $97.58.

Zoom Communications (NASDAQ:ZM) last released 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 net margin of 39.03% and a return on equity of 12.13%. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same period in the prior year, the firm posted $1.41 EPS. The business’s revenue for the quarter was up 5.3% compared to the same quarter last year. 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, analysts expect that Zoom Communications will post 2.93 earnings per share for the current fiscal year.

Insider Activity

In other Zoom Communications news, COO Aparna Bawa sold 12,137 shares of the stock in a transaction on Friday, January 16th. The stock was sold at an average price of $81.37, for a total transaction of $987,587.69. Following the sale, the chief operating officer owned 1,978 shares of the company’s stock, valued at approximately $160,949.86. This trade represents a 85.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Santiago Subotovsky sold 2,475 shares of Zoom Communications stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $90.39, for a total value of $223,715.25. Following the completion of the transaction, the director owned 155,917 shares in the company, valued at $14,093,337.63. This represents a 1.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 183,089 shares of company stock valued at $15,751,383. 11.51% of the stock is currently owned by corporate insiders.

Institutional Trading of Zoom Communications

Several hedge funds have recently modified their holdings of ZM. Advocate Investing Services LLC bought a new position in shares of Zoom Communications during the 4th quarter worth approximately $26,000. Elevation Point Wealth Partners LLC purchased a new position in Zoom Communications in the second quarter worth $27,000. Strive Financial Group LLC purchased a new position in Zoom Communications in the fourth quarter worth $27,000. Toth Financial Advisory Corp acquired a new position in shares of Zoom Communications during the fourth quarter worth $28,000. Finally, Root Financial Partners LLC purchased a new stake in shares of Zoom Communications during the 3rd quarter valued at $33,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

Key Zoom Communications News

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

• Positive Sentiment: Enterprise momentum and revenue beat — Q4 revenue was about $1.25B, up ~5.3% YoY with enterprise revenue rising ~7% and more large customers (> $100k) year‑over‑year, providing a healthier top‑line backdrop. Zoom Communications Reports Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: New AI product and execution — Zoom launched Zoom Virtual Agent 3.0 to expand AI‑driven customer service automation, reinforcing its strategy to monetize AI and deepen enterprise ties. Zoom introduces next-gen Zoom Virtual Agent to automate end-to-end customer resolution
• Positive Sentiment: Capital returns and margin progress — management completed a $2.7B buyback program and reported margin expansion and shifting cash flow dynamics that support shareholder returns. Zoom (ZM) Is Down 6.2% After Strong FY26 Results, New AI Launch And Buyback Completion
• Neutral Sentiment: Full disclosure materials available — investors can review the earnings slide deck and the full earnings call transcript for details on metrics, customer composition and FY27 assumptions. Zoom Q4 Results – Earnings Call Presentation
• Negative Sentiment: EPS miss — non‑GAAP EPS came in at $1.44, a few cents below Street consensus (roughly $1.48–$1.49), which undercut the stock despite the revenue beat. Zoom Q4 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: Softer near‑term profit outlook and analyst concern — several outlets and analysts highlighted guidance and commentary that imply tougher quarterly profit comparisons and prompted reviews of EPS trajectories, sparking downward pressure. Zoom forecasts quarterly profit below estimates amid tough competition
• Negative Sentiment: Mixed analyst moves — several firms adjusted ratings/targets after the print (Sanford Bernstein trimmed its target; others issued divergent price targets), adding to intraday volatility and driving some selling. Zoom tumbles after mixed Q4, analysts mull softer EPS outlook

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.