Zoom Communications (NASDAQ:ZM) Cut to Buy at Wall Street Zen

Wall Street Zen cut shares of Zoom Communications (NASDAQ:ZM) from a strong-buy rating to a buy rating in a report released on Monday morning.

A number of other equities research analysts have also commented on ZM. Piper Sandler upped their price target on Zoom Communications from $77.00 to $85.00 and gave the company a “neutral” rating in a research report on Thursday, May 22nd. Benchmark reiterated a “buy” rating and issued a $97.00 price target on shares of Zoom Communications in a research report on Tuesday, May 20th. Mizuho reduced their price target on Zoom Communications from $105.00 to $71.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 15th. Scotiabank upped their price target on Zoom Communications from $75.00 to $85.00 and gave the company a “sector perform” rating in a research report on Friday, May 16th. Finally, Needham & Company LLC upgraded Zoom Communications from a “hold” rating to a “moderate buy” rating and set a $100.00 price target on the stock in a research report on Thursday, May 22nd. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Zoom Communications currently has an average rating of “Hold” and an average price target of $87.00.

Zoom Communications Price Performance

Shares of NASDAQ ZM opened at $76.62 on Monday. The stock has a market capitalization of $23.18 billion, a PE ratio of 23.01, a P/E/G ratio of 12.69 and a beta of 0.71. The business has a fifty day moving average price of $78.68 and a two-hundred day moving average price of $79.10. Zoom Communications has a fifty-two week low of $55.06 and a fifty-two week high of $92.80.

Zoom Communications (NASDAQ:ZM) last issued its quarterly earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.13. Zoom Communications had a return on equity of 11.08% and a net margin of 22.31%. The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the company posted $1.35 EPS. The company’s revenue for the quarter was up 2.9% compared to the same quarter last year. On average, equities analysts expect that Zoom Communications will post 2.93 EPS for the current year.

Insider Activity at Zoom Communications

In other Zoom Communications news, CEO Eric S. Yuan sold 41,121 shares of Zoom Communications stock in a transaction dated Monday, April 14th. The stock was sold at an average price of $72.18, for a total transaction of $2,968,113.78. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jonathan Chadwick sold 12,500 shares of Zoom Communications stock in a transaction dated Tuesday, April 15th. The stock was sold at an average price of $72.57, for a total value of $907,125.00. Following the completion of the transaction, the director now owns 1,514 shares in the company, valued at approximately $109,870.98. This represents a 89.20% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 94,196 shares of company stock valued at $6,885,843. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ZM. Norges Bank purchased a new position in shares of Zoom Communications during the 4th quarter worth approximately $751,908,000. Altshuler Shaham Ltd grew its holdings in shares of Zoom Communications by 285.9% during the 4th quarter. Altshuler Shaham Ltd now owns 2,056,277 shares of the company’s stock worth $167,813,000 after acquiring an additional 1,523,480 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in shares of Zoom Communications by 24.3% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 6,385,523 shares of the company’s stock worth $521,123,000 after acquiring an additional 1,247,717 shares during the period. Raymond James Financial Inc. purchased a new position in shares of Zoom Communications during the 4th quarter worth approximately $99,471,000. Finally, Contrarius Group Holdings Ltd purchased a new position in shares of Zoom Communications during the 4th quarter worth approximately $72,854,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

About Zoom Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.