Zoom Video Communications Inc. (NASDAQ:ZM) went up by 0.60% from its latest closing price compared to the recent 1-year high of $588.84. The company’s stock price has collected -0.63% of loss in the last five trading sessions. Barron’s reported on 10/11/21 that Zoom Still Dominates Video Meetings. But Slowing Growth Is an Issue for the Stock.
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 77.14 x from its present earnings ratio. Opinions of the stock are interesting as 12 analysts out of 26 who provided ratings for Zoom Video Communications Inc. declared the stock was a “buy,” while 1 rated the stock as “overweight,” 12 rated it as “hold,” and 1 as “sell.”
The average price from analysts is $347.78, which is $134.49 above the current price. ZM currently public float of 207.31M and currently shorts hold a 5.97% ratio of that float. Today, the average trading volume of ZM was 4.37M shares.
ZM’s Market Performance
ZM stocks went down by -0.63% for the week, with a monthly drop of -11.97% and a quarterly performance of -29.15%, while its annual performance rate touched -48.02%. The volatility ratio for the week stands at 2.38% while the volatility levels for the past 30 days are set at 2.93% for Zoom Video Communications Inc.. The simple moving average for the period of the last 20 days is -4.82% for ZM stocks with a simple moving average of -25.50% for the last 200 days.
Analysts’ Opinion of ZM
Many brokerage firms have already submitted their reports for ZM stocks, with Morgan Stanley repeating the rating for ZM by listing it as a “Overweight.” The predicted price for ZM in the upcoming period, according to Morgan Stanley is $400 based on the research report published on August 26th of the current year 2021.
KeyBanc Capital Markets, on the other hand, stated in their research note that they expect to see ZM reach a price target of $428. The rating they have provided for ZM stocks is “Overweight” according to the report published on July 29th, 2021.
ZM Trading at -17.82% 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 -56.61% of loss for the given period.
Volatility was left at 2.93%, however, over the last 30 days, the volatility rate increased by 2.38%, as shares sank -9.22% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -32.58% lower at present.
During the last 5 trading sessions, ZM fell by -0.63%, which changed the moving average for the period of 200-days by -31.90% in comparison to the 20-day moving average, which settled at $267.14. In addition, Zoom Video Communications Inc. saw -24.26% in overturn over a single year, with a tendency to cut further losses.
Reports are indicating that there were more than several insider trading activities at ZM starting from Sankarlingam Velchamy, who sale 2,354 shares at the price of $255.27 back on Oct 12. After this action, Sankarlingam Velchamy now owns 4,075 shares of Zoom Video Communications Inc., valued at $600,906 using the latest closing price.
Bawa Aparna, the Chief Operating Officer of Zoom Video Communications Inc., sale 1,913 shares at $259.62 during a trade that took place back on Oct 05, which means that Bawa Aparna is holding 99,260 shares at $496,653 based on the most recent closing price.
Stock Fundamentals for ZM
Current profitability levels for the company are sitting at:
- +24.89 for the present operating margin
- +65.06 for the gross margin
The net margin for Zoom Video Communications Inc. stands at +25.33. The total capital return value is set at 27.08, while invested capital returns managed to touch 27.69. Equity return is now at value 28.20, with 19.30 for asset returns.
Based on Zoom Video Communications Inc. (ZM), the company’s capital structure generated 2.75 points at debt to equity in total, while total debt to capital is 2.67. Total debt to assets is 2.00, with long-term debt to equity ratio resting at 2.34. Finally, the long-term debt to capital ratio is 2.28.
When we switch over and look at the enterprise to sales, we see a ratio of 40.26, with the company’s debt to enterprise value settled at 0.00. The receivables turnover for the company is 12.77 and the total asset turnover is 0.80. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.70.