The stock of Zoom Video Communications Inc. (NASDAQ:ZM) decreased by -$1.49 on Tuesday to finish at $66.06, down -2.21 percent. The last five days have seen an average of 2,079,440 shares of common stock traded. 9 times new highs were reached in the current year, with a fall of -$1.68. The average number of shares traded over the last 20 days was 2,868,605, while the average volume over the last 50 days totaled 3,318,038.
ZM stock dropped -9.31% since last month. On 08/14/23, the company’s shares reached a one-month low of $65.59. The stock touched a high of $113.79 on 02/07/23, after rallying from a low of $60.45 in 52 weeks. The price of ZM stock has declined by -2.48% or -$1.68 this year, reaching a new high 9 times. Still, the stock price is down -41.95% from the 52-week high.
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Insider Transactions
ZM stock investors should be aware that Zoom Video Communications Inc. (ZM) stock had its last reported insider trading activity 9 days ago on Aug 07. On Aug 07, Director Subotovsky Santiago sold 2,067 shares at $68.58 each. This transaction resulted in the insider making $141,746. On Jul 28, Steckelberg Kelly sold 10,960 shares at a price of US$73.61. After the transaction, the insider now owns 0 shares. Director Chadwick Jonathan had earlier sold 5,000 shares on Jul 19 for $75.00 a share. The transaction was completed for $375,000.
Valuation Metrics
Beta for the stock is -0.20. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.50, the price-to-book (PB) ratio of 2.99, and the price-to-cash flow ratio of 18.54.
Financial Health
For the three months ended April 29, Zoom Video Communications Inc.’s quick ratio was 3.60, while its current ratio was 3.60, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 75.20% percent. Zoom Video Communications Inc.’s EBITDA margin for the year ended April 29 was 14.02%, whereas its operating margin stood at 1.50% for the same period. Based on annual data, it had gross profit of $3.29 billion and revenue of $4.39 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ZM’s return on assets (ROA) during the last 12 months has been 0.10%. There was a 1.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 0.10%.
Earnings Surprise
According to Zoom Video Communications Inc.’s quarterly financial report for the quarter that ended April 29, it had $4.57 billion in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.11 billion, while revenues rose by 2.86% to $824.71 million. It was predicted that Zoom Video Communications Inc.’s quarterly earnings would be $1.04, but it ended up being $0.89, beating the consensus by 16.90%. EBITDA was $100.28 million for the quarter. At the end of Zoom Video Communications Inc.’s most recent quarter ended April 29, its liabilities totaled 2.01 billion, while its total debt was $91.13 million. Equity owned by shareholders amounts to $297.55 million.
Technical Picture
Here’s a quick look at Zoom Video Communications Inc.’s (ZM) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 34.86%, suggesting the stock is Neutral, with a 18.88% historical volatility rate.
The stochastic %K and %D were 12.40% and 14.28% respectively, while the average true range (ATR) was 2.00. Based on the 14-day stochastic reading of 5.25%, the RSI (14) reading is 39.95%. On the 9-day MACD Oscillator, the stock is at -0.97, and the 14-day reading is at -2.62.
Analyst Ratings
In its most recent analyst report, MoffettNathanson raised its rating on Zoom Video Communications Inc. (NASDAQ: ZM) to a Market perform. Prior to this, analysts firm rated the stock as an Underperform. Analysts have assigned Zoom Video Communications Inc. (ZM) an Hold rating. ZM is a stock that is recommended for selling by 1 brokerage firm, while 26 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 6 others recommend it as a buy.
What is ZM’s price target for the next 12 months?
The current consensus forecast for the stock is between $65.00 and $105.00, with a median target price of $80.00. In analyzing these forecasts, the average price target given by analysts for Zoom Video Communications Inc. (ZM) is $82.84.
