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

On November 28, 2024, Bank of America announced an increase in the price target for Zoom Video Communications (NASDAQ:ZM) from $75.00 to $90.00. This adjustment came in a note issued to investors, with Bank of America currently maintaining a "neutral" rating on the stock. The new price objective indicates a potential upside of approximately 5.44% based on the company's previous closing price.

Several other analysts have also commented on Zoom Video Communications recently. On the same day, Piper Sandler raised their target price from $68.00 to $89.00 while reiterating their "neutral" rating. Similarly, Goldman Sachs revised their price target upward from $72.00 to $86.00, also maintaining a "neutral" rating. Stifel Nicolaus adjusted their target from $70.00 to $90.00 and assigned a "hold" rating. Additionally, Scotiabank upgraded the company to a "hold" rating in a report published on November 19. Rosenblatt Securities reaffirmed a "buy" rating and set a $78.00 price target on November 22. Currently, two analysts have given the stock a sell rating, fifteen have assigned a hold rating, and seven have issued buy ratings. According to MarketBeat, the overall consensus rating for the stock is "Hold," with an average price target of $85.19.

Stock Performance

Shares of Zoom Video Communications opened at $85.36 on Tuesday and have a 52-week range between a low of $55.06 and a high of $92.80. The stock's 50-day moving average stands at $74.55, while the 200-day moving average is $66.03. The company boasts a market capitalization of $26.27 billion, a P/E ratio of 30.59, a P/E/G ratio of 7.60, and a beta of -0.05.

Insider Activity

In recent corporate actions, insider Velchamy Sankarlingam sold 3,614 shares of Zoom’s stock on September 10 at an average price of $66.87, totaling $241,668.18. Post-sale, Sankarlingam retains ownership of 94,000 shares valued at approximately $6,285,780, reflecting a 3.70% decrease in their holdings. This transaction was disclosed in accordance with SEC regulations. Additionally, CEO Eric S. Yuan sold 178,571 shares on November 5 for approximately $13.73 million. Over the past ninety days, insiders have sold a total of 367,108 shares for a value of $26.8 million, with insiders owning about 10.78% of the total stock.

Institutional Investment Changes

Various institutional investors have made modifications to their stake in Zoom Video Communications. Pacer Advisors Inc. increased its position in the company by 96.7% during the second quarter, bringing their total to over 5.2 million shares worth about $310.6 million. Likewise, AQR Capital Management LLC raised its holdings by 78.5% in the same period, acquiring over 2.5 million additional shares, totaling roughly $337.2 million. FMR LLC boosted their stake by 23.8% in the third quarter, now holding over 12.4 million shares valued at $867.9 million. Acadian Asset Management LLC grew its position by 60.9%, while Eagle Asset Management purchased a new stake worth $62 million in the third quarter. Currently, institutional investors and hedge funds hold about 66.54% of Zoom's stock.

About Zoom Video Communications

Zoom Video Communications, Inc. provides a unified communications platform across various regions, including the Americas, Asia Pacific, Europe, and the Middle East. The company offers several products, such as Zoom Meetings, which facilitate HD video, voice, chat, and content sharing through multiple devices, Zoom Phone, an enterprise-grade cloud phone system, and Zoom Chat, allowing users to exchange messages, images, and files through multiple devices.

Bank, America, Zoom