Zoom Communications Inc (ZM) Stock: Evaluating the Market Performance

The price-to-earnings ratio for Zoom Communications Inc (NASDAQ: ZM) is 25.06x, which is above its average ratio. Moreover, the 36-month beta value for ZM is 0.71. Analysts have varying opinions on the stock, with 12 analysts rating it as a “buy,” 1 as “overweight,” 19 as “hold,” and 1 as “sell.”

The public float for ZM is 260.72M and currently, short sellers hold a 2.59% of that float. On May 09, 2025, ZM’s average trading volume was 2.56M shares.

ZM) stock’s latest price update

Zoom Communications Inc (NASDAQ: ZM)’s stock price has gone rise by 2.05 in comparison to its previous close of 78.64, however, the company has experienced a 3.88% increase in its stock price over the last five trading days. globenewswire.com reported 2025-05-07 that LAS VEGAS, May 07, 2025 (GLOBE NEWSWIRE) — Zoom Communications Inc. (NASDAQ: ZM) and ServiceNow (NYSE: NOW), the AI platform for business transformation, today announced plans to integrate Zoom CX with ServiceNow CRM and IT Service Management (ITSM). The integration, announced as part of Knowledge 2025, ServiceNow’s annual customer and partner event, will deliver a turnkey, AI-first solution for customer service and IT support in the contact center.

ZM’s Market Performance

ZM’s stock has risen by 3.88% in the past week, with a monthly rise of 20.31% and a quarterly drop of -7.43%. The volatility ratio for the week is 1.79% while the volatility levels for the last 30 days are 2.76% for Zoom Communications Inc The simple moving average for the last 20 days is 7.25% for ZM’s stock, with a simple moving average of 7.47% 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 7.82% 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 -13.52% of loss for the given period.

Volatility was left at 2.76%, however, over the last 30 days, the volatility rate increased by 1.79%, as shares surge +11.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.23% upper at present.

During the last 5 trading sessions, ZM rose by +3.88%, which changed the moving average for the period of 200-days by +36.85% in comparison to the 20-day moving average, which settled at $74.82. In addition, Zoom Communications Inc saw -1.67% 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 $78.82 back on May 05 ’25. After this action, Subotovsky Santiago now owns 157,824 shares of Zoom Communications Inc, valued at $195,087 using the latest closing price.

Subotovsky Santiago, the Director of Zoom Communications Inc, sale 2,475 shares at $75.43 during a trade that took place back on Apr 24 ’25, which means that Subotovsky Santiago is holding 160,299 shares at $186,684 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 0.01 points at debt to capital in total, while cash flow to debt ratio is standing at 30.19.

Currently, EBITDA for the company is 813.29 million with net debt to EBITDA at -1.48. When we switch over and look at the enterprise to sales, we see a ratio of 4.97. 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

To wrap up, the performance of Zoom Communications Inc (ZM) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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