Zoom Video Communications Inc. (NASDAQ:ZM) went down by -0.23% from its latest closing price compared to the recent 1-year high of $588.84. The company’s stock price has collected -6.19% of loss in the last five trading sessions. Barron’s reported 1 hour ago that Zoom Is Selling $1.5 Billion of Stock. Its Shares Are Down 40% Since October.
Is It Worth Investing in Zoom Video Communications Inc. (NASDAQ :ZM) Right Now?
Zoom Video Communications Inc. (NASDAQ:ZM) scored a price-to-earnings ratio above its average ratio, recording 235.17 x from its present earnings ratio. Opinions of the stock are interesting as 8 analysts out of 27 who provided ratings for Zoom Video Communications Inc. declared the stock was a “buy,” while 2 rated the stock as “overweight,” 15 rated it as “hold,” and 2 as “sell.”
The average price from analysts is $489.95, which is $150.26 above the current price. ZM currently public float of 196.65M and currently shorts hold a 5.03% ratio of that float. Today, the average trading volume of ZM was 8.68M shares.
ZM’s Market Performance
ZM stocks went down by -6.19% for the week, with a monthly drop of -12.37% and a quarterly performance of -31.42%, while its annual performance rate touched 362.05%. The volatility ratio for the week stands at 3.66% while the volatility levels for the past 30 days are set at 4.20% for Zoom Video Communications Inc.. The simple moving average for the period of the last 20 days is -9.81% for ZM stocks with a simple moving average of 7.17% for the last 200 days.
Analysts’ Opinion of ZM
Many brokerage firms have already submitted their reports for ZM stocks, with JP Morgan repeating the rating for ZM by listing it as a “Neutral.” The predicted price for ZM in the upcoming period, according to JP Morgan is $450 based on the research report published on December 09th of the previous year 2020.
RBC Capital Mkts, on the other hand, stated in their research note that they expect to see ZM reach a price target of $600, previously predicting the price at $450. The rating they have provided for ZM stocks is “Outperform” according to the report published on October 15th, 2020.
Needham gave a rating of “Buy” to ZM, setting the target price at $540 in the report published on October 15th of the previous year.
ZM Trading at -17.46% from the 50-Day Moving Average
After a stumble in the market that brought ZM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -42.78% of loss for the given period.
Volatility was left at 4.20%, however, over the last 30 days, the volatility rate increased by 3.66%, as shares sank -14.19% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -30.43% lower at present.
During the last 5 trading sessions, ZM fell by -5.58%, which changed the moving average for the period of 200-days by +124.57% in comparison to the 20-day moving average, which settled at $370.78. In addition, Zoom Video Communications Inc. saw 0.12% in overturn over a single year, with a tendency to cut further gains.
Reports are indicating that there were more than several insider trading activities at ZM starting from Subotovsky Santiago, who sale 70,512 shares at the price of $352.72 back on Dec 30. After this action, Subotovsky Santiago now owns 0 shares of Zoom Video Communications Inc., valued at $24,870,938 using the latest closing price.
Yuan Eric S., the Chief Executive Officer of Zoom Video Communications Inc., sale 70,142 shares at $402.81 during a trade that took place back on Dec 17, which means that Yuan Eric S. is holding 0 shares at $28,253,862 based on the most recent closing price.
Stock Fundamentals for ZM
Current profitability levels for the company are sitting at:
- +2.04 for the present operating margin
- +81.47 for the gross margin
The net margin for Zoom Video Communications Inc. stands at +3.49. The total capital return value is set at 2.37, while invested capital returns managed to touch 4.08. Equity return is now at value 39.50, with 19.40 for asset returns.
Based on Zoom Video Communications Inc. (ZM), the company’s capital structure generated 8.69 points at debt to equity in total, while total debt to capital is 7.99. Total debt to assets is 5.62, with long-term debt to equity ratio resting at 7.77. Finally, the long-term debt to capital ratio is 7.15.
When we switch over and look at the enterprise to sales, we see a ratio of 29.83, with the company’s debt to enterprise value settled at 0.00. The receivables turnover for the company is 6.77 and the total asset turnover is 0.76. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.15.