Market Analysts see Zoom Video Communications Inc. [ZM] falling to $75. Time to buy?

Zoom Video Communications Inc. [NASDAQ: ZM] traded at a low on 01/25/23, posting a -0.78 loss after which it closed the day’ session at $68.89. The company report on January 5, 2023 that Zoom Appoints Cindy Hoots to Board of Directors.

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“Zoom has changed the way companies around the world do business and is ushering in entirely new ways to transact business internationally,” said Hoots. “Global leaders have the responsibility to ensure our ecosystem of employees, partners, customers, and our community can connect and collaborate seamlessly in a sustainably responsible way. I am thrilled to join Zoom’s Board and CEO Eric Yuan, an inspirational leader with a strong vision. I believe this company has an important role in making a meaningful impact on people’s lives.”.

The results of the trading session contributed to over 3196390 shares changing hands. Over the past one week, the price volatility of Zoom Video Communications Inc. stands at 4.13% while the volatility over the past one month is 3.88%.

The market cap for ZM stock reached $19.37 billion, with 342.16 million shares outstanding and 214.78 million shares in the current float. Compared to the average trading volume of 3.56M shares, ZM reached a trading volume of 3196390 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $86.12 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 2.70. 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.

MKM Partners have made an estimate for Zoom Video Communications Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 23, 2023. While these analysts kept the previous recommendation, Wedbush raised their target price to Neutral. The new note on the price target was released on December 15, 2022, representing the official price target for Zoom Video Communications Inc. stock. Previously, the target price had yet another drop from $130 to $90, while Morgan Stanley kept a Equal-Weight rating on ZM stock. On October 07, 2022, analysts decreased their price target for ZM shares from 295 to 85.

The Average True Range (ATR) for Zoom Video Communications Inc. is set at 2.91, with the Price to Sales ratio for ZM stock in the period of the last 12 months amounting to 4.46. The Price to Book ratio for the last quarter was 4.10, with the Price to Cash per share for the same quarter was set at 18.37. Price to Free Cash Flow for ZM in the course of the last twelve months was 16.25 with Quick ratio for the last quarter at 3.20.

How has ZM stock performed recently?

Zoom Video Communications Inc. [ZM] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.09. With this latest performance, ZM shares gained by 4.47% in over the last four-week period, additionally sinking by -31.34% over the last 6 months – not to mention a drop of -54.96% 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 47.64, with the RSI for the last a single of trading hit 48.65, and the three-weeks RSI is set at 46.64 for Zoom Video Communications Inc. [ZM]. The present Moving Average for the last 50 days of trading for this stock 72.29, while it was recorded at 69.13 for the last single week of trading, and 89.63 for the last 200 days.

Zoom Video Communications Inc. [ZM]: Deeper insight into the 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 3.20 and a Current Ratio set at 3.20.

Earnings analysis for Zoom Video Communications Inc. [ZM]

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 -10.79%.

Insider trade positions for Zoom Video Communications Inc. [ZM]

There are presently around $10,849 million, or 64.30% of ZM stock, in the hands of institutional investors. The top three institutional holders of ZM stocks are: VANGUARD GROUP INC with ownership of 17,125,004, which is approximately 23.346% of the company’s market cap and around 12.57% of the total institutional ownership; BLACKROCK INC., holding 12,983,270 shares of the stock with an approximate value of $894.42 million in ZM stocks shares; and ARK INVESTMENT MANAGEMENT LLC, currently with $731.33 million in ZM stock with ownership of nearly -2.529% of the company’s market capitalization.

Positions in Zoom Video Communications Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 295 institutional holders increased their position in Zoom Video Communications Inc. [NASDAQ:ZM] by around 20,395,669 shares. Additionally, 374 investors decreased positions by around 22,431,585 shares, while 127 investors held positions by with 114,655,640 shares. The mentioned changes placed institutional holdings at 157,482,894 shares, according to the latest SEC report filing. ZM stock had 76 new institutional investments in for a total of 4,737,885 shares, while 154 institutional investors sold positions of 4,434,979 shares during the same period.


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