Zoom Video Communications Inc (NASDAQ: ZM)’s stock price has gone decline by -3.13 in comparison to its previous close of 70.68, however, the company has experienced a 0.45% increase in its stock price over the last five trading days. zacks.com reported 2024-10-11 that Zoom Video Communications (ZM) concluded the recent trading session at $70.67, signifying a -0.25% move from its prior day’s close.
Is It Worth Investing in Zoom Video Communications Inc (NASDAQ: ZM) Right Now?
Zoom Video Communications Inc (NASDAQ: ZM) has a higher price-to-earnings ratio of 24.53x compared to its average ratio. ZM has 36-month beta value of -0.05. Analysts have mixed views on the stock, with 8 analysts rating it as a “buy,” 2 as “overweight,” 22 as “hold,” and 2 as “sell.”
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The public float for ZM is 261.54M, and currently, short sellers hold a 3.02% ratio of that float. The average trading volume of ZM on October 14, 2024 was 3.24M shares.
ZM’s Market Performance
The stock of Zoom Video Communications Inc (ZM) has seen a 0.45% increase in the past week, with a 1.30% rise in the past month, and a 15.74% gain in the past quarter. The volatility ratio for the week is 2.43%, and the volatility levels for the past 30 days are at 1.95% for ZM. The simple moving average for the past 20 days is -0.15% for ZM’s stock, with a 7.24% simple moving average for the past 200 days.
Analysts’ Opinion of ZM
Many brokerage firms have already submitted their reports for ZM stocks, with Rosenblatt repeating the rating for ZM by listing it as a “Buy.” The predicted price for ZM in the upcoming period, according to Rosenblatt is $75 based on the research report published on April 18, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see ZM reach a price target of $70. The rating they have provided for ZM stocks is “Hold” according to the report published on March 19th, 2024.
Exane BNP Paribas gave a rating of “Underperform” to ZM, setting the target price at $60 in the report published on January 18th of the current year.
ZM Trading at 4.37% 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 -8.43% of loss for the given period.
Volatility was left at 1.95%, however, over the last 30 days, the volatility rate increased by 2.43%, as shares surge +1.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +17.51% upper at present.
During the last 5 trading sessions, ZM rose by +0.84%, which changed the moving average for the period of 200-days by -6.78% in comparison to the 20-day moving average, which settled at $68.59. In addition, Zoom Video Communications Inc saw -4.78% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ZM starting from Sankarlingam Velchamy, who sale 10,338 shares at the price of $69.51 back on Oct 10 ’24. After this action, Sankarlingam Velchamy now owns 104,414 shares of Zoom Video Communications Inc, valued at $718,604 using the latest closing price.
Crehan Shane, the Chief Accounting Officer of Zoom Video Communications Inc, sale 1,776 shares at $69.51 during a trade that took place back on Oct 10 ’24, which means that Crehan Shane is holding 1,789 shares at $123,451 based on the most recent closing price.
Stock Fundamentals for ZM
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.75 for the gross margin
The net margin for Zoom Video Communications Inc stands at 0.19. The total capital return value is set at 0.09. Equity return is now at value 11.27, with 9.01 for asset returns.
Based on Zoom Video Communications Inc (ZM), the company’s capital structure generated 0.01 points at debt to capital in total, while cash flow to debt ratio is standing at 29.39. The debt to equity ratio resting at 0.01. The interest coverage ratio of the stock is 24.38.
Currently, EBITDA for the company is 519.96 million with net debt to EBITDA at -1.62. When we switch over and look at the enterprise to sales, we see a ratio of 4.27. The receivables turnover for the company is 8.68for trailing twelve months and the total asset turnover is 0.44. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.45.
Conclusion
To put it simply, Zoom Video Communications Inc (ZM) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
