Zoom Video Communications Inc. (NASDAQ:ZM) finished Wednesday with an addition of $2.34 to close at $68.17, an upside of 3.55 percent. An average of 7,174,320 shares of common stock have been traded in the last five days. There was a gain of $2.79 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 3,711,345 shares traded, while the 50-day average volume stands at 3,481,780.
ZM stock has decreased by -1.67% in the last month. The company shares reached their 1-month lowest point of $63.58 on 08/22/23. With the stock rallying to its 52-week high on 02/07/23, shares of the company touched a low of $60.45 and a high of $89.67 in 52 weeks. It has reached a new high 9 times so far this year and achieved 0.63% or $0.43 in price. In spite of this, the price is down -23.98% 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 17 days ago on Aug 07. In this transaction, the insider spent $141,746. Chief Financial Officer, Steckelberg Kelly, disposed of 10,960 shares at a price of $73.61 on Jul 28. The insider now owns more than $806,718 worth of shares. Prior to that, Director Chadwick Jonathan went on to Sale 5,000 shares at $75.00 each on Jul 19. An amount of $375,000 was transacted.
Valuation Metrics
Zoom Video Communications Inc. (ZM) stock’s beta is -0.17. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.52, the price-to-book (PB) ratio at 3.09, and the price-to-cash flow ratio at 18.62.
Financial Health
The quick ratio of Zoom Video Communications Inc. for the three months ended July 30 was 3.60, and the current ratio was 3.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending July 30. Zoom Video Communications Inc.’s EBITDA margin for the year ending July 30 is 14.02%, while its operating margin for the same period stands at 1.50%. Its gross profit as reported stood at $3.29 billion compared to revenue of $4.39 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Zoom Video Communications Inc.’s return on assets was 0.10%.
Earnings Surprise
In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $15.44 million in the quarter, while revenues of $1.17 billion were shrunk -636.01%. The analyst consensus anticipated Zoom Video Communications Inc.’s latest quarter earnings to come in at $1.05 per share, but it turned out to be $1.34, a 27.60% surprise. For the quarter, EBITDA amounted to $100.28 million. Shareholders own equity worth $297.55 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Zoom Video Communications Inc. (ZM) price momentum. RSI 9-day as of the close on 23 August was 53.25%, suggesting the stock is Neutral, with historical volatility in this time frame at 29.29%.
As of today, ZM’s price is $66.58 +4.28% or $2.79 from its 5-day moving average. ZM is currently trading -4.12% lower than its 20-day SMA and -5.37% lower than its 100-day SMA. However, the stock’s current price level is -1.46% below the SMA50 and -13.04% below the SMA200.
The stochastic %K and %D were 44.54% and 32.54%, respectively, and the average true range (ATR) was 2.27. With the 14-day stochastic at 62.25% and the average true range at 2.23, the RSI (14) stands at 50.36%. The stock has reached 0.59 on the 9-day MACD Oscillator while the 14-day reading was at 0.10.
Analyst Ratings
MoffettNathanson upgraded Zoom Video Communications Inc. (NASDAQ: ZM) to a a Market perform rating in its most recent analyst report. Previously, the stock was rated as an Underperform. The consensus rating for Zoom Video Communications Inc. (ZM) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell ZM, while 26 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 6 others rate it as a “buy”.
What is ZM’s price target for the next 12 months?
Analysts predict a range of price targets between $66.00 and $105.00, with a median target of $80.00. Taking a look at these predictions, the average price target given by analysts for Zoom Video Communications Inc. (ZM) stock is $82.28.
