As of Wednesday close, Zoom Video Communications Inc.’s (NASDAQ:ZM) stock was down -$0.14, moving down -0.20 percent to $68.67. The average number of shares traded per day over the past five days has been 2,355,680 shares. 2 times new highs have been achieved over the past 5 days, with a $0.50 gain in that time frame. In the last twenty days, the average volume was 3,558,670, while in the previous 50 days, it was 3,322,698.
Since last month, ZM stock retreated -5.82%. Shares of the company fell to $63.58 on 08/22/23, the lowest level in the past month. A 52-week high of $89.67 was reached on 02/07/23 after having rallying from a 52-week low of $60.45. Since the beginning of this year, ZM’s stock price has risen by 1.37% or $0.93, and marked a new high 9 times. However, the stock has declined by -23.42% since its 52-week high.
ZM stock investors should be aware that Zoom Video Communications Inc. (ZM) stock had its last reported insider trading activity 8 days ago on Aug 23. Steckelberg Kelly, the Chief Financial Officer of the company, disposed of 10,960 shares for $68.29 on Aug 23. It resulted in a $748,490 divestment by the insider. Subotovsky Santiago sold 2,067 shares at an average price of $68.58 on Aug 07. The insider now owns 170,028 shares following the transaction. On Jul 28, Chief Financial Officer Steckelberg Kelly sold 10,960 shares at $73.61 apiece. The transaction was valued at $806,718.
Valuation Metrics
Right now, Zoom Video Communications Inc. (ZM) has a P/E ratio of about 722.84. The stock’s beta is -0.20. Besides these, the trailing price-to-sales (P/S) ratio of 4.58, the price-to-book (PB) ratio of 2.93, and the price-to-cash flow ratio of 18.02 may also be considered.
Financial Health
In the three months ended July 30, Zoom Video Communications Inc.’s quick ratio stood at 4.00, while its current ratio was 4.00, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 75.60% percent. In the year ended July 30, EBITDA margin amounted to 14.02%, whereas operating margins totaled 2.80%. Based on annual data, ZM earned $3.29 billion in gross profit and brought in $4.39 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 1.60%. Return on equity (ROE) for the past 12 months was 2.20%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ZM’s revenue rose 3.4% to $1.11 billion during the quarter, while net income inched up to $1.14 billion. While analysts expected Zoom Video Communications Inc. to report $1.05 quarterly earnings, the actual figure was $1.34 per share, beating the consensus estimate by 27.60%. During the quarter, the company generated $276.02 million in EBITDA. The liabilities of Zoom Video Communications Inc. were 1.92 billion at the end of its most recent quarter ended July 30, and its total debt was $85.69 million. The value of shareholders’ equity is $300.96 million.
Technical Picture
This quick technical analysis looks at Zoom Video Communications Inc.’s (ZM) price momentum. With a historical volatility rate of 26.71%, the RSI 9-day stood at 55.99% on 30 August.
With respect to its five-day moving average, the current Zoom Video Communications Inc. price is up by +0.73% percent or $0.50. At present, ZM shares trade -1.75% below its 20-day simple moving average and -4.43% percent below its 100-day simple moving average. However, the stock is currently trading approximately -2.68% below its SMA50 and -16.49% below its SMA200.
Stochastic coefficient K was 80.02% and Stochastic coefficient D was 72.93%, while ATR was 2.01. Given the Stochastic reading of 85.39% for the 14-day period, the RSI (14) reading has been calculated as 52.44%. As of today, the MACD Oscillator reading stands at 0.88, while the 14-day reading stands at 1.34.
Analyst Ratings
MoffettNathanson upgraded its rating on Zoom Video Communications Inc. (NASDAQ: ZM) to a Market perform in a note to investors on May 23, 2023. The analysts firm previously had an Underperform rating on the stock.Zoom Video Communications Inc. (ZM) has been rated Hold by analysts. According to 1 brokerage firm, ZM is a sell, and 26 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate Zoom Video Communications Inc. stock as buy, with 6 recommending it as overweight.
With a median target price of $80.00, the current consensus forecast for the stock is $66.00 – $105.00. Based on these forecasts, analysts predict Zoom Video Communications Inc. (ZM) will achieve an average price target of $82.20.
