Zoom Communications (NASDAQ:ZM) Stock Rating Lowered by Wall Street Zen

Zoom Communications (NASDAQ:ZM) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Other analysts have also issued research reports about the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Zoom Communications in a research note on Monday, December 29th. BTIG Research reduced their price objective on shares of Zoom Communications from $105.00 to $100.00 and set a “buy” rating for the company in a report on Thursday, February 26th. Needham & Company LLC reissued a “buy” rating and set a $100.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Royal Bank Of Canada reissued an “outperform” rating and set a $100.00 target price on shares of Zoom Communications in a research report on Tuesday, November 25th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $95.00 price target on shares of Zoom Communications in a research report on Tuesday, November 25th. Fourteen 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 data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $95.32.

Zoom Communications Stock Performance

Shares of Zoom Communications stock opened at $77.50 on Friday. Zoom Communications has a 52 week low of $64.41 and a 52 week high of $97.58. The stock has a 50 day moving average price of $86.41 and a two-hundred day moving average price of $84.69. The stock has a market capitalization of $22.95 billion, a PE ratio of 12.50, a price-to-earnings-growth ratio of 4.42 and a beta of 0.93.

Zoom Communications (NASDAQ:ZM) last released its quarterly earnings data on Wednesday, February 25th. The company reported $1.44 EPS 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 11.88%. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the firm earned $1.41 EPS. The company’s revenue 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. Research analysts forecast that Zoom Communications will post 2.93 EPS for the current year.

Insiders Place Their Bets

In other Zoom Communications news, CFO Michelle Chang sold 8,417 shares of Zoom Communications stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $86.54, for a total transaction of $728,407.18. Following the transaction, the chief financial officer owned 25,482 shares of the company’s stock, valued at $2,205,212.28. This trade represents a 24.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Velchamy Sankarlingam sold 7,568 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the insider owned 136,182 shares in the company, valued at $11,786,552.10. The trade was a 5.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 183,089 shares of company stock worth $15,730,024 in the last ninety days. 10.78% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Communications

Institutional investors and hedge funds have recently modified their holdings of the business. NewEdge Advisors LLC boosted its position in Zoom Communications by 16.8% in 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 increased its position in shares of Zoom Communications by 59.1% during the 1st 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% during the 1st quarter. Geneos Wealth Management Inc. now owns 881 shares of the company’s stock valued at $65,000 after purchasing an additional 397 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of Zoom Communications during the 2nd quarter worth $217,000. Finally, Envestnet Asset Management Inc. boosted its holdings in shares of Zoom Communications by 68.2% in 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. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.