Bank of America Increases Zoom Video Communications Price Target to $90.00

On November 28th, 2024, Bank of America announced that it has raised its target price for Zoom Video Communications (NASDAQ: ZM) from $75.00 to $90.00. This update was shared in a report intended for investors and indicates that the brokerage currently holds a "neutral" rating on the stock. The new price target reflects a potential upside of approximately 5.44% based on Zoom's previous closing price.

Several other financial analysts have also provided updates on Zoom's stock. Piper Sandler has increased its target price from $68.00 to $89.00 while also assigning a "neutral" rating. Meanwhile, the Goldman Sachs Group has adjusted its price target for Zoom from $72.00 to $86.00, maintaining a "neutral" rating as well. Additionally, Stifel Nicolaus raised its target price to $90.00 and categorized the stock as a "hold." On November 19th, Scotiabank upgraded Zoom to a "hold" rating. Furthermore, on November 22nd, Rosenblatt Securities reaffirmed a "buy" rating while setting a target price of $78.00 for the stock. At present, two analysts have rated the stock as a sell, fifteen have given it a hold rating, and seven have assigned a buy rating. According to MarketBeat data, Zoom's average price target currently stands at $85.19, with a consensus rating of "hold."

Zoom Video Communications Stock Performance

As of Tuesday, shares of Zoom Video Communications opened at $85.36. Over the past year, the stock has seen a low of $55.06 and a high of $92.80. Currently, the stock is evaluated with a 50-day moving average of $74.55 and a 200-day moving average of $66.03. Zoom's market capitalization is approximately $26.27 billion, with a price-to-earnings (P/E) ratio of 30.59 and a P/E growth (P/E/G) ratio of 7.60, while its beta is -0.05.

Insider Trading Activity

Recent insider activity has been noted within Zoom Video Communications. Insider Velchamy Sankarlingam sold 3,614 shares on September 10th, with an average sale price of $66.87, totaling around $241,668.18. Following this transaction, Sankarlingam retains ownership of 94,000 shares, valued at about $6.29 million, reflecting a 3.70% decrease in their overall position. This information was disclosed in a filing with the Securities and Exchange Commission (SEC).

Moreover, CEO Eric S. Yuan sold 178,571 shares on November 5th at an average price of $76.91, with this transaction amounting to approximately $13.73 million. The details of this sale were also disclosed in accordance with SEC regulations. Over the last three months, insiders have sold a total of 367,108 shares of Zoom stock, valued at roughly $26.8 million, with 10.78% of the company's stock still held by insiders.

Institutional Investors' Involvement

In terms of institutional investment, several firms have altered their positions regarding Zoom Video Communications. Pacer Advisors Inc. has increased its holdings significantly by 96.7%, acquiring an additional 2,579,720 shares, bringing its total shares to approximately 5.25 million, valued at $310.57 million. Similarly, AQR Capital Management LLC raised its stake by 78.5%, now owning 5.73 million shares worth $337.23 million. FMR LLC also boosted its holdings by 23.8%, now holding about 12.44 million shares valued at $867.91 million after buying an additional 2.4 million shares in the last quarter.

Acadian Asset Management LLC increased its share count by 60.9% in the second quarter, getting 4.90 million shares valued at $290.15 million after acquiring an extra 1.86 million shares. Lastly, Eagle Asset Management Inc. entered a new investment position in Zoom, valued at approximately $62.04 million. Currently, institutional investors and hedge funds own around 66.54% of Zoom's stock.

Overview of Zoom Video Communications

Zoom Video Communications, Inc. is a provider of a unified communications platform, serving clients in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company offers various services, including Zoom Meetings, which provide high-definition video, voice, chat, and content sharing across mobile devices, desktops, laptops, telephones, and conference room systems. Other offerings include Zoom Phone, an enterprise-level cloud phone service, and Zoom Chat, which allows users to share messages, audio files, and content across different devices.

Bank, America, Zoom