Zoom Video Communications Inc. [NASDAQ: ZM] gained 5.66% on the last trading session, reaching $356.81 price per share at the time. The company report on January 13, 2021 that Zoom Announces Pricing of $1.75 Billion Public Offering.
Zoom Video Communications, Inc. (NASDAQ: ZM), a leading provider of video-first unified communications, announced the pricing of an underwritten public offering of 5,147,059 shares of its Class A common stock at a price to the public of $340.00 per share. The aggregate gross proceeds from the offering are expected to be approximately $1.75 billion, before deducting the underwriting discounts and commissions and estimated offering expenses. The offering is expected to close on or about January 15, 2021, subject to customary closing conditions. In connection with the offering, Zoom has granted the underwriter a 30-day option to purchase up to an additional 735,294 shares of its Class A common stock at the public offering price, less underwriting discounts and commissions.
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J.P. Morgan is acting as the sole book-running manager for the offering.
Zoom Video Communications Inc. represents 284.78 million in outstanding shares, while the company has a total market value of $99.97 billion with the latest information. ZM stock price has been found in the range of $331.10 to $358.90.
If compared to the average trading volume of 8.68M shares, ZM reached a trading volume of 8902775 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Zoom Video Communications Inc. [ZM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ZM shares is $487.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ZM stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
JP Morgan have made an estimate for Zoom Video Communications Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 09, 2020. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price from $450 to $600. The new note on the price target was released on October 15, 2020, representing the official price target for Zoom Video Communications Inc. stock. Previously, the target price had yet another raise from $440 to $540, while Needham kept a Buy rating on ZM stock. On October 15, 2020, analysts increased their price target for ZM shares from 228 to 611.
The Average True Range (ATR) for Zoom Video Communications Inc. is set at 17.23, with the Price to Sales ratio for ZM stock in the period of the last 12 months amounting to 51.08. The Price to Book ratio for the last quarter was 67.71, with the Price to Cash per share for the same quarter was set at 6.68. Price to Free Cash Flow for ZM in the course of the last twelve months was 79.04 with Quick ratio for the last quarter at 1.90.
Trading performance analysis for ZM stock
Zoom Video Communications Inc. [ZM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.11. With this latest performance, ZM shares dropped by -10.34% in over the last four-week period, additionally plugging by 37.23% over the last 6 months – not to mention a rise of 381.98% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ZM stock in for the last two-week period is set at 42.84, with the RSI for the last a single of trading hit 45.71, and the three-weeks RSI is set at 42.76 for Zoom Video Communications Inc. [ZM]. The present Moving Average for the last 50 days of trading for this stock 405.53, while it was recorded at 346.21 for the last single week of trading, and 315.42 for the last 200 days.
Zoom Video Communications Inc. [ZM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Zoom Video Communications Inc. [ZM] shares currently have an operating margin of +2.04 and a Gross Margin at +81.47. Zoom Video Communications Inc.’s Net Margin is presently recorded at +3.49.
Return on Total Capital for ZM is now 2.37, given the latest momentum, and Return on Invested Capital for the company is 4.08. Return on Equity for this stock inclined to 4.41, with Return on Assets sitting at 2.65. When it comes to the capital structure of this company, Zoom Video Communications Inc. [ZM] has a Total Debt to Total Equity ratio set at 8.69. Additionally, ZM Total Debt to Total Capital is recorded at 7.99, with Total Debt to Total Assets ending up at 5.62. Long-Term Debt to Equity for the company is recorded at 7.77, with the Long-Term Debt to Total Capital now at 7.15.
Reflecting on the efficiency of the workforce at the company, Zoom Video Communications Inc. [ZM] managed to generate an average of $8,590 per employee. Receivables Turnover for the company is 6.77 with a Total Asset Turnover recorded at a value of 0.76.Zoom Video Communications Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 1.90.
Zoom Video Communications Inc. [ZM]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Zoom Video Communications Inc. posted 0.15/share EPS, while the average EPS was predicted by analysts to be reported at 0.07/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 114.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ZM.