Zoom Communications Inc (NASDAQ: ZM) has experienced a rise in its stock price by 1.38 compared to its previous closing price of 74.02. However, the company has seen a fall of -3.52% in its stock price over the last five trading days. zacks.com reported 2025-04-01 that Zacks.com users have recently been watching Zoom (ZM) quite a bit. Thus, it is worth knowing the facts that could determine the stock’s prospects.
Is It Worth Investing in Zoom Communications Inc (NASDAQ: ZM) Right Now?
Zoom Communications Inc (NASDAQ: ZM) has a price-to-earnings ratio of 23.43x that is above its average ratio. Additionally, the 36-month beta value for ZM is 0.80. There are mixed opinions on the stock, with 12 analysts rating it as a “buy,” 1 rating it as “overweight,” 20 rating it as “hold,” and 1 rating it as “sell.”
The public float for ZM is 260.68M and currently, short sellers hold a 2.81% ratio of that float. The average trading volume of ZM on April 03, 2025 was 2.59M shares.
ZM’s Market Performance
The stock of Zoom Communications Inc (ZM) has seen a -3.52% decrease in the past week, with a 0.15% rise in the past month, and a -9.30% fall in the past quarter. The volatility ratio for the week is 2.71%, and the volatility levels for the past 30 days are at 2.54% for ZM. The simple moving average for the last 20 days is -0.34% for ZM’s stock, with a simple moving average of 3.21% for the last 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 -5.49% 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 -19.14% of loss for the given period.
Volatility was left at 2.54%, however, over the last 30 days, the volatility rate increased by 2.71%, as shares sank -0.74% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -4.46% lower at present.
During the last 5 trading sessions, ZM fell by -3.52%, which changed the moving average for the period of 200-days by +29.51% in comparison to the 20-day moving average, which settled at $75.29. In addition, Zoom Communications Inc saw -8.05% 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 Subotovsky Santiago, who sale 2,475 shares at the price of $77.86 back on Mar 24 ’25. After this action, Subotovsky Santiago now owns 169,452 shares of Zoom Communications Inc, valued at $192,702 using the latest closing price.
Santiago Subotovsky, the Director of Zoom Communications Inc, proposed sale 9,900 shares at $78.20 during a trade that took place back on Mar 24 ’25, which means that Santiago Subotovsky is holding shares at $774,180 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 4.63. 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 seen mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as 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.
