Zoom Communications (NASDAQ:ZM) Price Target Cut to $88.00 by Analysts at Sanford C. Bernstein

Zoom Communications (NASDAQ:ZM) had its target price trimmed by Sanford C. Bernstein from $90.00 to $88.00 in a report published on Thursday morning,Benzinga reports. They currently have a market perform rating on the stock.

A number of other analysts have also commented on ZM. Jefferies Financial Group boosted their price objective on Zoom Communications from $100.00 to $105.00 and gave the stock a “buy” rating in a report on Tuesday, November 25th. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $100.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Needham & Company LLC restated a “buy” rating and set a $100.00 price objective on shares of Zoom Communications in a report on Tuesday, November 25th. Piper Sandler boosted their target price on shares of Zoom Communications from $85.00 to $91.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Finally, JPMorgan Chase & Co. increased their target price on shares of Zoom Communications from $85.00 to $90.00 and gave the company a “neutral” rating in a research report on Tuesday, November 25th. Fourteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Zoom Communications currently has an average rating of “Hold” and an average target price of $95.32.

Zoom Communications Trading Down 11.6%

Shares of Zoom Communications stock opened at $75.54 on Thursday. The business has a 50-day moving average price of $87.95 and a two-hundred day moving average price of $84.36. Zoom Communications has a 1-year low of $64.41 and a 1-year high of $97.58. The company has a market cap of $22.37 billion, a P/E ratio of 12.18, a PEG ratio of 7.65 and a beta of 0.90.

Zoom Communications (NASDAQ:ZM) last posted its quarterly 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 during the quarter, compared to the consensus estimate of $1.23 billion. During the same period last year, the firm posted $1.41 earnings per share. The company’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. Equities research analysts forecast that Zoom Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Michelle Chang sold 8,417 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $86.54, for a total transaction of $728,407.18. Following the completion of the transaction, the chief financial officer owned 25,482 shares of the company’s stock, valued at approximately $2,205,212.28. The trade was a 24.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Aparna Bawa sold 12,137 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the chief operating officer owned 1,978 shares in the company, valued at approximately $160,949.86. This trade represents a 85.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 183,089 shares of company stock worth $15,751,383. 11.51% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently bought and sold shares of ZM. Advocate Investing Services LLC purchased a new stake in shares of Zoom Communications during the 4th quarter valued at $26,000. Elevation Point Wealth Partners LLC bought a new position in Zoom Communications in the second quarter valued at $27,000. Strive Financial Group LLC bought a new position in Zoom Communications in the fourth quarter valued at $27,000. Toth Financial Advisory Corp purchased a new stake in Zoom Communications during the fourth quarter valued at about $28,000. Finally, Root Financial Partners LLC bought a new stake in Zoom Communications during the third quarter worth about $33,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Key Headlines Impacting Zoom Communications

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.