Zoom Video Communications Inc (NASDAQ:ZM) saw a downside of -0.51% to close Tuesday at $68.30 after subtracting -$0.35 on the day. The 5-day average trading volume is 2,448,720 shares of the company’s common stock. It has gained $70.05 in the past week and touched a new high 1 time within the past 5 days. An average of 3,604,510 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,573,496.
ZM’s 1-month performance is 0.89% or $0.60 on its low of $66.86 reached on 08/29/23. The company’s shares have touched a 52-week low of $60.45 and high of $89.67, with the stock’s rally to the 52-week high happening on 02/07/23. YTD, ZM has achieved 0.83% or $0.56 and has reached a new high 9 times. However, the current price is down -23.83% from the 52-week high price.
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Insider Transactions
ZM stock investors last saw insider trading activity on Sep 19.Bawa Aparna (Chief Operating Officer) most recently sold 13,268 shares at $69.36 per share on Sep 19. This transaction cost the insider $920,313. Chief Executive Officer, Yuan Eric S., sold 13,252 shares at a price of $69.38 on Sep 19. Then, on Sep 18, Chief Executive Officer Yuan Eric S. sold 13,253 shares at a price of $70.44 per share. This transaction amounted to $933,598.
Valuation Metrics
ZM stock has a beta of -0.19. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 4.55 while the price-to-book (PB) in the most recent quarter is 2.94, with the price to cash flow ratio at 17.44.
Zoom Video Communications Inc’s quick ratio for the period ended July 30 was 3.87, with the current ratio over the same period at 3.87. As well, the company’s long term debt to equity for the quarter ending July 30 was 0.01, while the total debt to equity was 0.01.. In terms of profitability, the gross margin trailing 12 months is 72.32%. The trailing 12-month EBITDA margin is 14.02% while for the period ending July 30, Zoom Video Communications Inc’s operating margin was 2.77%. The firm’s gross profit as reported stood at $3.29 billion against revenue of $4.39 billion.
Earnings Surprise
For the quarterly period ending July 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 74.86% to $181.97 million, while revenue of $15.44 million was 91.52% off the previous quarter. Analysts expected ZM to announce $1.05 per share in earnings in its latest quarter, but it posted $1.34, representing a 27.60% surprise. EBITDA for the quarter stood at more than $276.02 million. ZM stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 1.92 billion, with total debt at $85.69 million. Shareholders hold equity totaling $300.96 million.
Let’s look briefly at Zoom Video Communications Inc (ZM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 26 September was 38.60% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.06%.
The stock’s 5-day moving average is $68.58, reflecting a -1.50% or -$1.04 change from its current price. ZM is currently trading +1.08% above its 20-day SMA, +12.30% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -6.23% and SMA200 by-2.25%.
Stochastic %K and %D was 9.99% and 8.81% and the average true range (ATR) pointed at 1.62. The RSI (14) points at 43.80%, while the 14-day stochastic is at 6.32% with the period’s ATR at 1.78. The stock’s 9-day MACD Oscillator is pointing at -0.91 and -1.63 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Zoom Video Communications Inc (NASDAQ: ZM), HSBC Securities launched coverage with a Buy rating. Analysts offering their rating for ZM stock have a consensus rating for the stock as Hold. Currently, 1 brokerage advisors rate ZM as a “sell,”, while 24 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 7 have offered a “buy” rating.
What is ZM’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $66.00 and a high of $105.00, with their median price target at $79.00. Looking at these predictions, the average price target given by analysts is for Zoom Video Communications Inc (ZM) stock is $82.24.
