Zoom Communications (NASDAQ:ZM) Hits New 12-Month High – What’s Next?

by · The Markets Daily

Zoom Communications, Inc. (NASDAQ:ZM – Get Free Report)’s stock price reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $91.43 and last traded at $89.39, with a volume of 638481 shares trading hands. The stock had previously closed at $90.24.

Wall Street Analysts Forecast Growth

ZM has been the topic of a number of analyst reports. Wedbush reiterated an “outperform” rating and set a $95.00 price objective on shares of Zoom Communications in a research report on Tuesday, November 25th. Sanford C. Bernstein reissued a “market perform” rating and issued a $90.00 price objective on shares of Zoom Communications in a research note on Tuesday, November 25th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $100.00 price target on shares of Zoom Communications in a report on Tuesday, November 25th. Cantor Fitzgerald reissued a “neutral” rating and set a $87.00 price target on shares of Zoom Communications in a research note on Tuesday, November 25th. Finally, Wells Fargo & Company began coverage on Zoom Communications in a research report on Tuesday, September 30th. They issued an “equal weight” rating and a $90.00 price objective on the stock. Eleven analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $92.43.

Read Our Latest Stock Analysis on Zoom Communications

Zoom Communications Stock Down 1.3%

The company has a market capitalization of $26.38 billion, a PE ratio of 17.34, a price-to-earnings-growth ratio of 7.98 and a beta of 0.81. The stock’s 50 day moving average is $83.28 and its two-hundred day moving average is $80.05.

Zoom Communications (NASDAQ:ZM – Get Free Report) last issued its quarterly earnings data on Monday, November 24th. The company reported $1.52 earnings per share for the quarter, topping analysts’ consensus estimates of $1.44 by $0.08. The firm had revenue of $1.23 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Zoom Communications had a return on equity of 12.20% and a net margin of 33.17%.The firm’s quarterly revenue was up 4.4% on a year-over-year basis. During the same period in the prior year, the business posted $1.38 EPS. Zoom Communications has set its FY 2026 guidance at 5.950-5.970 EPS and its Q4 2026 guidance at 1.480-1.490 EPS. On average, sell-side analysts predict that Zoom Communications, Inc. will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zoom Communications news, COO Aparna Bawa sold 10,528 shares of the company’s stock in a transaction that occurred on Thursday, October 16th. The shares were sold at an average price of $79.77, for a total transaction of $839,818.56. Following the transaction, the chief operating officer owned 1,978 shares in the company, valued at approximately $157,785.06. This represents a 84.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Velchamy Sankarlingam sold 2,595 shares of the firm’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $87.84, for a total transaction of $227,944.80. Following the completion of the transaction, the insider directly owned 133,659 shares of the company’s stock, valued at approximately $11,740,606.56. This represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 389,373 shares of company stock worth $32,325,274 over the last ninety days. Insiders own 11.51% of the company’s stock.

Hedge Funds Weigh In On Zoom Communications

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ZM. SouthState Corp purchased a new stake in Zoom Communications during the 1st quarter valued at about $25,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Zoom Communications during the second quarter worth about $27,000. REAP Financial Group LLC boosted its position in Zoom Communications by 181.7% in the second quarter. REAP Financial Group LLC now owns 355 shares of the company’s stock valued at $28,000 after buying an additional 229 shares during the last quarter. FNY Investment Advisers LLC acquired a new position in Zoom Communications in the 2nd quarter worth approximately $31,000. Finally, Root Financial Partners LLC purchased a new position in Zoom Communications during the 3rd quarter worth approximately $33,000. Hedge funds and other institutional investors own 66.54% of the company’s stock.

Zoom Communications Company Profile

(Get Free Report)

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.

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