Zoom Video Communications Inc. (NASDAQ:ZM) saw an upside of 0.60% to close Tuesday at $255.49 after adding $1.52 on the day. The 5-day average trading volume is 2,725,260 shares of the company’s common stock. It has gained $260.54 in the past week. An average of 4,053,380 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,681,086.
ZM’s 1-month performance is -11.97% or -$46.01 on its low of $250.11 reached on 10/06/21. The company’s shares have touched a 52-week low of $250.11 and high of $588.84, with the stock’s rally to the 52-week high happening on 02/16/21. YTD, ZM has lost -24.26% or -$81.83. However, the current price is down -56.61%% from the 52-week high price.
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On Oct 12, 1 day have gone by since the last insider trading activity for Zoom Video Communications Inc. (ZM). Sankarlingam Velchamy (Pres. of Engineering & Product) most recently sold 2,354 shares at $255.27 per share on Oct 12. This transaction cost the insider $600,906. Chief Operating Officer, Bawa Aparna, sold 1,913 shares at a price of $259.62 on Oct 05. Then, on Oct 04, Chief Financial Officer Steckelberg Kelly sold 6,700 shares at a price of $255.65 per share. This transaction amounted to $1,712,836.
The company’s PE ratio for the last five years has touched a high of 3405.24 and a low of 76.63. ZM stock has a beta of 0.00. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 20.97 while the price-to-book (PB) in the most recent quarter is 16.22, with the price to cash flow ratio at 45.53.
Zoom Video Communications Inc.’s quick ratio for the period ended July 30 was 3.50, with the current ratio over the same period at 3.50 meaning that ZM stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.00, while the total debt to equity was 0.00. In terms of profitability, the gross margin trailing 12 months is 71.10%. The trailing 12-month EBITDA margin is 30.32% while for the period ending July 30; Zoom Video Communications Inc.’s operating margin was 26.60%. The firm’s gross profit as reported stood at $1.83 billion against revenue of $2.65 billion.
For the quarterly period ending July 30 this year, Zoom Video Communications Inc.’s cash and short-term investments amounted to $3.17 billion against total debt of $100.36 million. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 35.04% to $1.02 billion, while revenue of $956.24 million was 6.39% off the previous quarter. Analysts expected ZM to announce $1.16 per share in earnings in its latest quarter, but it posted $1.36, representing a 17.20% surprise. EBITDA for the quarter stood at more than $348.26 million. ZM stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 1.85 billion, with total debt at $100.36 million. Shareholders hold equity totaling $297.13 million
Let’s look briefly at Zoom Video Communications Inc. (ZM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 12 October was 32.38% to suggest the stock is trending Neutral, with historical volatility in this time period at 24.36%.
The stock’s 5-day moving average is $254.89, reflecting a -0.63% or -$1.63 change from its current price. ZM is currently trading -9.22% above its 20-day SMA, -21.32% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -32.58% and -31.90% respectively.
Stochastic %K and %D was 15.48% and 15.08% and the average true range (ATR) pointed at 8.09. The RSI (14) points at 31.38%, while the 14-day stochastic is at 17.79% with the period’s ATR at 8.93. The stock’s 9-day MACD Oscillator is pointing at -2.96 and -6.65 on the 14-day charts.
In the most recent analyst report for Zoom Video Communications Inc. (NASDAQ: ZM), Morgan Stanley upgraded it to an Overweight rating. They previously had an Equal-weight rating on the stock. Analysts offering their rating for ZM stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate ZM as a “sell,”, while 12 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 12 have offered a “buy” rating.
What is ZM’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $145.00 and a high of $460.00, with their median price target at $359.50. Looking at these predictions, the average price target given by analysts is for Zoom Video Communications Inc. (ZM) stock is $347.78.