Zoom Communications Inc (NASDAQ: ZM) has experienced a rise in its stock price by 0.39 compared to its previous closing price of 75.16. However, the company has seen a gain of 3.14% in its stock price over the last five trading days. zacks.com reported 2025-03-18 that Zoom (ZM) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock’s prospects.
Is It Worth Investing in Zoom Communications Inc (NASDAQ: ZM) Right Now?
Zoom Communications Inc (NASDAQ: ZM) has a higher price-to-earnings ratio of 23.56x compared to its average ratio, The 36-month beta value for ZM is at 0.66. Analysts have varying views on the stock, with 12 analysts rating it as a “buy,” 2 rating it as “overweight,” 20 as “hold,” and 1 as “sell.”
The public float for ZM is 262.10M, and currently, shorts hold a 2.55% of that float. The average trading volume for ZM on March 19, 2025 was 2.67M shares.
ZM’s Market Performance
ZM’s stock has seen a 3.14% increase for the week, with a -11.34% drop in the past month and a -13.33% fall in the past quarter. The volatility ratio for the week is 2.58%, and the volatility levels for the past 30 days are at 3.17% for Zoom Communications Inc The simple moving average for the past 20 days is -0.79% for ZM’s stock, with a 4.92% simple moving average for the past 200 days.
Analysts’ Opinion of ZM
Many brokerage firms have already submitted their reports for ZM stocks, with Cantor Fitzgerald repeating the rating for ZM by listing it as a “Neutral.” The predicted price for ZM in the upcoming period, according to Cantor Fitzgerald is $87 based on the research report published on January 17, 2025 of the current year 2025.
Wells Fargo, 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 $70. The rating they have provided for ZM stocks is “Equal Weight” according to the report published on January 07th, 2025.
Jefferies gave a rating of “Buy” to ZM, setting the target price at $100 in the report published on December 19th of the previous year.
ZM Trading at -5.98% 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 -18.70% of loss for the given period.
Volatility was left at 3.17%, however, over the last 30 days, the volatility rate increased by 2.58%, as shares sank -11.44% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.51% lower at present.
During the last 5 trading sessions, ZM rose by +3.14%, which changed the moving average for the period of 200-days by +22.96% in comparison to the 20-day moving average, which settled at $76.05. In addition, Zoom Communications Inc saw -7.55% 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 Yuan Eric S., who sale 91,133 shares at the price of $75.18 back on Mar 05 ’25. After this action, Yuan Eric S. now owns 0 shares of Zoom Communications Inc, valued at $6,851,216 using the latest closing price.
Yuan Eric S., the Chief Executive Officer of Zoom Communications Inc, sale 75,531 shares at $74.98 during a trade that took place back on Mar 04 ’25, which means that Yuan Eric S. is holding 0 shares at $5,663,110 based on the most recent closing price.
Stock Fundamentals for ZM
Current profitability levels for the company are sitting at:
- 0.19 for the present operating margin
- 0.74 for the gross margin
The net margin for Zoom Communications Inc stands at 0.22. The total capital return value is set at 0.1. Equity return is now at value 11.92, with 9.66 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 52.01.
Currently, EBITDA for the company is 813.29 million with net debt to EBITDA at -1.51. When we switch over and look at the enterprise to sales, we see a ratio of 4.65. The receivables turnover for the company is 9.42for trailing twelve months and the total asset turnover is 0.42. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.46.
Conclusion
In conclusion, Zoom Communications Inc (ZM) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
