Zoom Video Communications Inc (NASDAQ:ZM) finished Friday with an addition of $1.61 to close at $69.94, an upside of 2.36 percent. An average of 2,277,540 shares of common stock have been traded in the last five days. There was a gain of $1.09 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 3,418,930 shares traded, while the 50-day average volume stands at 3,492,590.
ZM stock has increased by 1.85% in the last month. The company shares reached their 1-month lowest point of $66.41 on 09/28/23. 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 3.25% or $2.20 in price. In spite of this, the price is down -22.00% 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 11 days ago on Sep 19. In this transaction, the insider spent $920,313. Chief Executive Officer, Yuan Eric S., disposed of 13,252 shares at a price of $69.38 on Sep 19. The insider now owns more than $919,359 worth of shares. Prior to that, Chief Executive Officer Yuan Eric S. went on to Sale 13,253 shares at $70.44 each on Sep 18. An amount of $933,598 was transacted.
Valuation Metrics
Zoom Video Communications Inc (ZM) has a trailing price-to-earnings (P/E) ratio of 155.22. The stock’s beta is -0.19. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.66, the price-to-book (PB) ratio at 3.01, and the price-to-cash flow ratio at 17.85.
Financial Health
The quick ratio of Zoom Video Communications Inc for the three months ended July 30 was 3.87, and the current ratio was 3.87, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.01 and a total debt to equity ratio of 0.01 for the quarter ending July 30. Its gross profit as reported stood at $3.29 billion compared to revenue of $4.39 billion.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $181.97 million in the quarter, while revenues of $15.44 million were grew 74.86%. 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 $276.02 million. Shareholders own equity worth $300.96 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 29 September was 54.50%, suggesting the stock is Neutral, with historical volatility in this time frame at 20.55%.
As of today, ZM’s price is $68.51 +1.58% or $1.09 from its 5-day moving average. ZM is currently trading -1.53% lower than its 20-day SMA and +11.14% higher than its 100-day SMA. However, the stock’s current price level is +0.20% above the SMA50 and -5.09% below the SMA200.
The stochastic %K and %D were 33.03% and 19.43%, respectively, and the average true range (ATR) was 1.87. With the 14-day stochastic at 58.44% and the average true range at 1.92, the RSI (14) stands at 52.31%. The stock has reached -0.12 on the 9-day MACD Oscillator while the 14-day reading was at -0.85.
Analyst Ratings
HSBC Securities launched coverage on Zoom Video Communications Inc (NASDAQ: ZM) in its analyst report released on September 15, 2023. The firm assigned the stock a Buy rating. 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 24 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 7 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 $79.00. Taking a look at these predictions, the average price target given by analysts for Zoom Video Communications Inc (ZM) stock is $82.24.
