Zoom Video Communications Inc. [ZM] is -57.12% lower this YTD. Is it still time to buy?

Zoom Video Communications Inc. [NASDAQ: ZM] stock went on a downward path that fall over -6.21% on Tuesday, amounting to a one-week price decrease of less than -1.45%. The company report on August 22, 2022 that Zoom Video Communications Reports Financial Results for the Second Quarter of Fiscal Year 2023.

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Second quarter total revenue of $1,099.5 million, up 8% year over year.

Second quarter GAAP operating margin of 11.1% and non-GAAP operating margin of 35.8%.

Over the last 12 months, ZM stock dropped by -72.83%. The one-year Zoom Video Communications Inc. stock forecast points to a potential upside of 26.55. The average equity rating for ZM stock is currently 2.40, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $23.06 billion, with 298.55 million shares outstanding and 219.82 million shares in the current float. Compared to the average trading volume of 4.99M shares, ZM stock reached a trading volume of 4608395 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $107.36 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.

KeyBanc Capital Markets have made an estimate for Zoom Video Communications Inc. shares, keeping their opinion on the stock as Sector Weight, with their previous recommendation back on September 13, 2022. The new note on the price target was released on August 26, 2022, representing the official price target for Zoom Video Communications Inc. stock.

The Average True Range (ATR) for Zoom Video Communications Inc. is set at 4.52, with the Price to Sales ratio for ZM stock in the period of the last 12 months amounting to 5.37. The Price to Book ratio for the last quarter was 3.93, with the Price to Cash per share for the same quarter was set at 18.87. Price to Free Cash Flow for ZM in the course of the last twelve months was 17.83 with Quick ratio for the last quarter at 3.40.

ZM Stock Performance Analysis:

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 -1.45. With this latest performance, ZM shares dropped by -27.99% in over the last four-week period, additionally sinking by -16.67% over the last 6 months – not to mention a drop of -72.83% 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 34.34, with the RSI for the last a single of trading hit 32.65, and the three-weeks RSI is set at 36.84 for Zoom Video Communications Inc. [ZM]. The present Moving Average for the last 50 days of trading for this stock 99.84, while it was recorded at 81.36 for the last single week of trading, and 124.41 for the last 200 days.

Insight into Zoom Video Communications Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Zoom Video Communications Inc. [ZM] shares currently have an operating margin of +27.57 and a Gross Margin at +74.28. Zoom Video Communications Inc.’s Net Margin is presently recorded at +33.54.

Return on Equity for this stock inclined to 28.53, with Return on Assets sitting at 21.40.

Zoom Video Communications Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.40 and a Current Ratio set at 3.40.

ZM Stock EPS

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Zoom Video Communications Inc. go to 13.58%.

Zoom Video Communications Inc. [ZM] Insider Position Details

There are presently around $12,463 million, or 63.10% of ZM stock, in the hands of institutional investors. The top three institutional holders of ZM stocks are: VANGUARD GROUP INC with ownership of 13,883,713, which is approximately 5.837% of the company’s market cap and around 12.38% of the total institutional ownership; BLACKROCK INC., holding 12,979,957 shares of the stock with an approximate value of $1.02 billion in ZM stocks shares; and MORGAN STANLEY, currently with $913.02 million in ZM stock with ownership of nearly 0.803% of the company’s market capitalization.

Positions in Zoom Video Communications Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 385 institutional holders increased their position in Zoom Video Communications Inc. [NASDAQ:ZM] by around 22,776,214 shares. Additionally, 350 investors decreased positions by around 18,958,678 shares, while 132 investors held positions by with 116,308,323 shares. The mentioned changes placed institutional holdings at 158,043,215 shares, according to the latest SEC report filing. ZM stock had 109 new institutional investments in for a total of 7,193,400 shares, while 122 institutional investors sold positions of 3,970,724 shares during the same period.


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