Goldman Sachs Raises Zoom Video Communications Price Target to $86.00

On November 28, 2024, analysts from The Goldman Sachs Group announced an increase in the price target for Zoom Video Communications (NASDAQ:ZM) from $72.00 to $86.00. This update was shared in a research report released on Tuesday. The analysts currently maintain a “neutral” rating concerning the stock. The new price target suggests a potential upside of 0.75% based on Zoom's latest trading price.

Several other analysts have also provided insights concerning Zoom Video Communications. For example, Robert W. Baird reduced their price target from $84.00 to $77.00 while maintaining an “outperform” rating in a report dated August 22nd. In another report, Piper Sandler raised their price target from $68.00 to $89.00, also assigning a “neutral” rating to the stock.

Moreover, Evercore ISI upgraded Zoom Video Communications from an “in-line” rating to “outperform,” increasing their price target from $70.00 to $115.00. Needham & Company LLC sustained a “hold” rating on the stock in a recent note published on October 11th. Deutsche Bank Aktiengesellschaft, on August 23rd, boosted their price target from $71.00 to $75.00 while also retaining a “hold” rating for the company.

Currently, two investment analysts rate Zoom with a sell rating, fifteen have given a hold rating, and seven have issued buy ratings. According to MarketBeat data, the consensus rating for Zoom Video Communications stands at “Hold,” with an average price target set at $85.19.

Zoom Video Communications Stock Activity

On Tuesday, shares of ZM opened at $85.36, reflecting a rise of 2.3%. The company’s 50-day and 200-day moving averages are $74.55 and $66.03, respectively. With a market capitalization of $26.27 billion, Zoom Video Communications has a price-to-earnings (P/E) ratio of 30.59 and a P/E growth (P/E/G) ratio of 7.60. Its stock has ranged between a low of $55.06 and a high of $92.80 over the past 12 months.

Insider Trading Activities

In recent insider activities, CFO Kelly Steckelberg sold 8,901 shares on September 4th at an average price of $68.44, totaling $609,184.44 from that transaction. This sale was documented in a filing with the Securities and Exchange Commission (SEC). On the following day, COO Aparna Bawa sold 880 shares at an average price of $68.09 for approximately $59,919.20. Post-transaction, Bawa owns around 2,809 shares valued at close to $191,264.81—indicating a 23.85% reduction in her holdings. Over the past ninety days, insiders sold a total of 367,108 shares valued at $26,796,191, with insiders owning about 10.78% of the total stock.

Institutional Investor Movements

Recently, hedge funds have made adjustments to their stakes in Zoom. Baker Avenue Asset Management LP increased its shareholding by 82.1% during the third quarter, now holding 28,593 shares worth $1,994,000 after acquiring an additional 12,890 shares. Sanctuary Advisors LLC also entered with a new stake during the second quarter worth approximately $763,000.

Robeco Institutional Asset Management B.V. expanded its position by 15.4% in the third quarter, holding 1,257,714 shares valued at $87,713,000 after an addition of 167,618 shares. National Pension Service grew its ownership by 30.1% during the same quarter, bringing its total to 655,227 shares worth $45,696,000.

Finally, Eagle Asset Management Inc. acquired a new position valued at about $62,038,000 in the third quarter. Presently, hedge funds and institutional investors collectively own 66.54% of Zoom's stock.

About Zoom Video Communications

Zoom Video Communications, Inc. is a provider of a unified communications platform available across the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company offers various services, including Zoom Meetings for HD video and voice communication, Zoom Phone as an enterprise cloud telephony system, and Zoom Chat that facilitates message and content sharing across various devices.

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