Zuora Inc. (NYSE:ZUO) finished Friday with an addition of $0.32 to close at $8.97, an upside of 3.70 percent. An average of 1,485,660 shares of common stock have been traded in the last five days. There was a fall of -$1.03 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 869,935 shares traded, while the 50-day average volume stands at 909,694.
ZUO stock has decreased by -14.65% in the last month. The company shares reached their 1-month lowest point of $8.50 on 08/25/23. With the stock rallying to its 52-week high on 06/07/23, shares of the company touched a low of $5.45 and a high of $12.12 in 52 weeks. It has reached a new high 24 times so far this year and achieved 41.04% or $2.61 in price. In spite of this, the price is down -25.99% from the 52-week high.
Insider Transactions
ZUO stock investors should be aware that Zuora Inc. (ZUO) stock had its last reported insider trading activity 47 days ago on Jul 10. In this transaction, the insider spent $187,979. Chief Revenue Officer, Traube Robert J., disposed of 57,281 shares at a price of $10.08 on Jul 05. The insider now owns more than $577,140 worth of shares. Prior to that, Chief Financial Officer McElhatton Todd went on to Sale 38,323 shares at $10.08 each on Jul 05. An amount of $386,127 was transacted.
Valuation Metrics
Zuora Inc. (ZUO) stock’s beta is 1.85. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.98, the price-to-book (PB) ratio at 11.80.
Financial Health
The quick ratio of Zuora Inc. for the three months ended July 30 was 1.70, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.05 and a total debt to equity ratio of 2.05 for the quarter ending July 30. Zuora Inc.’s EBITDA margin for the year ending July 30 is -18.34%, while its operating margin for the same period stands at -45.30%. Its gross profit as reported stood at $242.86 million compared to revenue of $396.09 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Zuora Inc.’s return on assets was -29.10%.
Earnings Surprise
For the three-month period that ended July 30, Zuora Inc. had $212.31 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$19.3 million in the quarter, while revenues of -$9.31 million were shrunk -20.05%. The analyst consensus anticipated Zuora Inc.’s latest quarter earnings to come in at $0.03 per share, but it turned out to be $0.07, a 133.30% surprise. For the quarter, EBITDA amounted to -$10.92 million. Shareholders own equity worth $137.2 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Zuora Inc. (ZUO) price momentum. RSI 9-day as of the close on 25 August was 26.84%, suggesting the stock is oversold, with historical volatility in this time frame at 61.50%.
As of today, ZUO’s price is $9.45 -10.30% or -$1.03 from its 5-day moving average. ZUO is currently trading -17.78% lower than its 20-day SMA and -6.07% lower than its 100-day SMA. However, the stock’s current price level is -22.27% below the SMA50 and +23.38% above the SMA200.
The stochastic %K and %D were 11.51% and 14.29%, respectively, and the average true range (ATR) was 0.48. With the 14-day stochastic at 21.36% and the average true range at 0.46, the RSI (14) stands at 31.15%. The stock has reached -0.65 on the 9-day MACD Oscillator while the 14-day reading was at -0.90.
Analyst Ratings
Robert W. Baird launched coverage on Zuora Inc. (NYSE: ZUO) in its analyst report released on July 13, 2023. The firm assigned the stock a Neutral rating. The consensus rating for Zuora Inc. (ZUO) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ZUO, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.
What is ZUO’s price target for the next 12 months?
Analysts predict a range of price targets between $10.00 and $18.00, with a median target of $12.00. Taking a look at these predictions, the average price target given by analysts for Zuora Inc. (ZUO) stock is $13.00.
