Zoom Video Communications Inc. (ZM) Stock Could Soon Reward Patient Investors

Zoom Video Communications Inc. (NASDAQ: ZM) is 377.81% higher on its value in year-to-date trading and has touched a low of $60.97 and a high of $303.58 in the current 52-week trading range. The ZM stock was last observed hovering at around $299.27 in the last trading session, with the day’s gains setting it 25.83% off its average median price target of $235.00 for the next 12 months. It is also -8.37% off the consensus price target high of $300.00 offered by 32 analysts, but current levels are -108.06% lower than the price target low of $156.25 for the same period.

Currently trading at $325.10, the stock is 20.32% and 24.06% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 19.51 million and changing 8.63% at the moment leaves the stock 111.17% off its SMA200. ZM registered 254.64% gain for a year compared to 6-month gain of 176.75%. The firm has a 50-day simple moving average (SMA 50) of $3.27% and a 200-day simple moving average (SMA200) of $11.52M.

The stock witnessed a 28.04% loss in the last 1 month and extending the period to 3 months gives it a 56.24%, and is 15.17% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 4.90% over the week and 5.09% over the month.

Zoom Video Communications Inc. (ZM) has around 2854 employees, a market worth around $90.31B and $828.80M in sales. Current P/E ratio is 1796.13 and Fwd P/E is 206.81. Distance from 52-week low is 433.23% and 7.09% from its 52-week high. The company has generated returns on investments over the last 12 months (1.40%).

Zoom Video Communications Inc. (ZM) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Zoom Video Communications Inc. (ZM) is a “Hold”. 32 analysts offering their recommendations for the stock have an average rating of 2.60, where 13 rate it as a Hold and 3 think it is a “Overweight”. 11 of the analysts rate the stock as a “Buy”. 5 analysts have rated the stock as a Sell or Underperform.

Zoom Video Communications Inc. quarterly earnings per share for the current quarter are estimated at $0.35 with sales reaching $492.9M over the same period.The EPS is expected to grow by 271.40% this year, but quarterly earnings will post 191.00% year-over-year. Quarterly sales are estimated to grow 195.90% in year-over-year returns.

Zoom Video Communications Inc. (ZM) Top Institutional Holders

465 institutions hold shares in Zoom Video Communications Inc. (ZM), with 45.69M shares held by insiders accounting for 16.20% while institutional investors hold 58.75% of the company’s shares. The shares outstanding are 279.89M, and float is at 161.27M with Short Float at 5.72%. Institutions hold 49.24% of the Float.

The top institutional shareholder in the company is Morgan Stanley with over 15.15 million shares valued at $3.84 billion. The investor’s holdings represent 8.32% of the ZM Shares outstanding. As of Jun 29, 2020, the second largest holder is Vanguard Group, Inc. (The) with 10.28 million shares valued at $2.61 billion to account for 5.64% of the shares outstanding. The other top investors are Renaissance Technologies, LLC which holds 7.26 million shares representing 3.98% and valued at over $1.84 billion, while Hillhouse Capital Advisors Ltd. holds 3.77% of the shares totaling 6.86 million with a market value of $1.74 billion.

Zoom Video Communications Inc. (ZM) Insider Activity

A total of 113 insider transactions have happened at Zoom Video Communications Inc. (ZM) in the last six months, with sales accounting for 100 and purchases happening 13 times. The most recent transaction is an insider sale by Steckelberg Kelly, the company’s Chief Financial Officer. SEC filings show that Steckelberg Kelly sold 11,066 shares of the company’s common stock on Aug 18 at a price of $272.23 per share for a total of $3.01 million. Following the sale, the insider now owns 1388.0 shares.

Zoom Video Communications Inc. disclosed in a document filed with the SEC on Aug 17 that Pelosi Janine (Chief Marketing Officer) sold a total of 9,375 shares of the company’s common stock. The trade occurred on Aug 17 and was made at $253.74 per share for $2.38 million. Following the transaction, the insider now directly holds 1388.0 shares of the ZM stock.

Still, SEC filings show that on Aug 12, Yuan Eric S. (Chief Executive Officer) disposed off 70,143 shares at an average price of $237.40 for $16.65 million. The insider now directly holds 0 shares of Zoom Video Communications Inc. (ZM).