At the last check on Thursday, Zoom Video Communications Inc.’s (NASDAQ:ZM) stock was down -$0.62, moving down -0.89 percent to $68.18. The average number of shares traded per day over the past five days has been 2,723,426 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.38 fall in that time frame. In the last twenty days, the average volume was 3,505,902, while in the previous 50 days, it was 3,622,619.
Since last month, ZM stock rose 3.58%. 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 0.66% or $0.45, and marked a new high 9 times. However, the stock has declined by -23.96% since its 52-week high.
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ZM stock investors should be aware that Zoom Video Communications Inc. (ZM) stock had its last reported insider trading activity 2 days ago on Sep 19. Yuan Eric S., the Chief Executive Officer of the company, disposed of 13,252 shares for $69.38 on Sep 19. It resulted in a $919,359 divestment by the insider. Yuan Eric S. sold 13,253 shares at an average price of $70.44 on Sep 18. The insider now owns 0 shares following the transaction. On Sep 13, Chief Financial Officer Steckelberg Kelly sold 10,960 shares at $69.51 apiece. The transaction was valued at $761,793.
Valuation Metrics
Right now, Zoom Video Communications Inc. (ZM) has a P/E ratio of about 717.74. The stock’s beta is -0.20. Besides these, the trailing price-to-sales (P/S) ratio of 4.63, the price-to-book (PB) ratio of 2.91, and the price-to-cash flow ratio of 18.21 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 18.65%, the RSI 9-day stood at 36.97% on 20 September.
With respect to its five-day moving average, the current Zoom Video Communications Inc. price is down by -4.72% percent or -$3.38. At present, ZM shares trade +0.03% above its 20-day simple moving average and +11.00% percent above its 100-day simple moving average. However, the stock is currently trading approximately -2.31% below its SMA50 and -8.24% below its SMA200.
Stochastic coefficient K was 7.86% and Stochastic coefficient D was 21.32%, while ATR was 1.80. Given the Stochastic reading of 3.50% for the 14-day period, the RSI (14) reading has been calculated as 43.14%. As of today, the MACD Oscillator reading stands at -1.39, while the 14-day reading stands at -2.39.
Analyst Ratings
HSBC Securities launched its rating on Zoom Video Communications Inc. (NASDAQ: ZM) to a Buy in a note to investors on September 15, 2023. Zoom Video Communications Inc. (ZM) has been rated Hold by analysts. According to 1 brokerage firm, ZM is a sell, and 24 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 7 recommending it as overweight.
With a median target price of $79.00, 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 $82.24.
