Zoom Communications, Inc. (NASDAQ:ZM) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Zoom Communications, Inc. (NASDAQ:ZM) have been assigned an average recommendation of “Hold” from the twenty-eight research firms that are presently covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating and fourteen have issued a buy rating on the company. The average 12-month target price among brokers that have covered the stock in the last year is $95.3182.

A number of equities analysts have weighed in on ZM shares. Weiss Ratings reissued a “buy (b-)” rating on shares of Zoom Communications in a research report on Monday, December 29th. Wolfe Research raised shares of Zoom Communications from a “peer perform” rating to an “outperform” rating and set a $115.00 price target for the company in a research report on Thursday, February 5th. Wall Street Zen lowered shares of Zoom Communications from a “buy” rating to a “hold” rating in a research report on Saturday, March 7th. Sanford C. Bernstein reduced their price target on shares of Zoom Communications from $90.00 to $88.00 and set a “market perform” rating for the company in a research report on Thursday, February 26th. Finally, Argus raised shares of Zoom Communications to a “hold” rating in a research report on Monday, March 9th.

Zoom Communications Stock Performance

Shares of NASDAQ:ZM opened at $89.03 on Friday. Zoom Communications has a fifty-two week low of $69.15 and a fifty-two week high of $97.58. The business has a 50-day simple moving average of $82.20 and a two-hundred day simple moving average of $83.96. The firm has a market cap of $26.23 billion, a price-to-earnings ratio of 14.36, a price-to-earnings-growth ratio of 4.71 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 analysts’ consensus estimates of $1.48 by ($0.04). Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.23 billion. During the same period last year, the firm posted $1.41 EPS. Zoom Communications’s quarterly 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. As a group, research analysts predict that Zoom Communications will post 2.93 earnings per share for the current year.

Insider Activity

In other news, CEO Eric S. Yuan sold 15,273 shares of the company’s stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $82.23, for a total transaction of $1,255,898.79. Following the completion of the sale, the chief executive officer owned 36,796 shares of the company’s stock, valued at $3,025,735.08. This represents a 29.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Santiago Subotovsky sold 2,475 shares of the company’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $77.42, for a total transaction of $191,614.50. Following the sale, the director directly owned 153,442 shares of the company’s stock, valued at $11,879,479.64. The trade was a 1.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 125,462 shares of company stock worth $10,356,350. Company insiders own 11.51% of the company’s stock.

Institutional Investors Weigh In On Zoom Communications

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Advocate Investing Services LLC purchased a new stake in Zoom Communications in the 4th quarter worth approximately $26,000. Strive Financial Group LLC purchased a new stake in Zoom Communications in the 4th quarter worth approximately $27,000. Toth Financial Advisory Corp purchased a new stake in Zoom Communications in the 4th quarter worth approximately $28,000. Root Financial Partners LLC purchased a new stake in Zoom Communications in the 3rd quarter worth approximately $33,000. Finally, Sound Income Strategies LLC increased its holdings in Zoom Communications by 94.8% in the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company’s stock worth $33,000 after acquiring an additional 200 shares in 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.