Zoom Communications Inc (ZM) Stock: A Review of the Recent Movement

The stock of Zoom Communications Inc (ZM) has seen a 2.97% increase in the past week, with a 6.72% gain in the past month, and a 28.31% flourish in the past quarter. The volatility ratio for the week is 2.42%, and the volatility levels for the past 30 days are at 3.12% for ZM. The simple moving average for the past 20 days is 2.59% for ZM’s stock, with a 29.14% simple moving average for the past 200 days.

Is It Worth Investing in Zoom Communications Inc (NASDAQ: ZM) Right Now?

The price-to-earnings ratio for Zoom Communications Inc (NASDAQ: ZM) is above average at 28.57x. The 36-month beta value for ZM is also noteworthy at -0.03. There are mixed opinions on the stock, with 10 analysts rating it as a “buy,” 2 rating it as “overweight,” 19 rating it as “hold,” and 1 rating it as “sell.”

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free
Sponsored

The public float for ZM is 261.50M, and at present, short sellers hold a 3.40% of that float. The average trading volume of ZM on December 10, 2024 was 3.21M shares.

ZM) stock’s latest price update

The stock of Zoom Communications Inc (NASDAQ: ZM) has decreased by -0.74 when compared to last closing price of 86.22.Despite this, the company has seen a gain of 2.97% in its stock price over the last five trading days. marketbeat.com reported 2024-12-06 that The combination of a new interest rate cut cycle and a swelling stock market will set up a fertile environment for more mergers and acquisitions in 2025. Lower interest rates will make financing the buyouts cheaper, while a rising stock market will enhance the buying power of acquirers using their stock in the transactions.

Analysts’ Opinion of ZM

Many brokerage firms have already submitted their reports for ZM stocks, with Evercore ISI repeating the rating for ZM by listing it as a “Outperform.” The predicted price for ZM in the upcoming period, according to Evercore ISI is $115 based on the research report published on November 26, 2024 of the current year 2024.

Wedbush, on the other hand, stated in their research note that they expect to see ZM reach a price target of $85, previously predicting the price at $80. The rating they have provided for ZM stocks is “Outperform” according to the report published on October 17th, 2024.

Rosenblatt gave a rating of “Buy” to ZM, setting the target price at $75 in the report published on April 18th of the current year.

ZM Trading at 11.56% 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 -7.78% of loss for the given period.

Volatility was left at 3.12%, however, over the last 30 days, the volatility rate increased by 2.42%, as shares surge +5.06% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +23.05% upper at present.

During the last 5 trading sessions, ZM rose by +2.97%, which changed the moving average for the period of 200-days by +34.98% in comparison to the 20-day moving average, which settled at $83.42. In addition, Zoom Communications Inc saw 19.01% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at ZM starting from Gordon Ritter, who proposed sale 41,911 shares at the price of $85.58 back on Dec 09 ’24. After this action, Gordon Ritter now owns shares of Zoom Communications Inc, valued at $3,586,743 using the latest closing price.

Yuan Eric S., the Chief Executive Officer of Zoom Communications Inc, sale 83,333 shares at $84.01 during a trade that took place back on Dec 05 ’24, which means that Yuan Eric S. is holding 0 shares at $7,000,721 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 Communications Inc stands at 0.2. The total capital return value is set at 0.09. Equity return is now at value 11.70, with 9.41 for asset returns.

Based on Zoom Communications Inc (ZM), the company’s capital structure generated 0.0 points at debt to capital in total, while cash flow to debt ratio is standing at 49.8. The debt to equity ratio resting at 0.0. The interest coverage ratio of the stock is 24.78.

Currently, EBITDA for the company is 629.73 million with net debt to EBITDA at -1.47. When we switch over and look at the enterprise to sales, we see a ratio of 5.39. The receivables turnover for the company is 10.1for trailing twelve months and the total asset turnover is 0.43. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.50.

Conclusion

In summary, Zoom Communications Inc (ZM) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing 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.

Related Posts