Rosenblatt slashes price target on Zoom Video Communications Inc. [ZM] – find out why.

Zoom Video Communications Inc. [NASDAQ: ZM] loss -2.71% or -1.88 points to close at $67.62 with a heavy trading volume of 7919169 shares. The company report on April 14, 2023 that Putting people at the heart of hybrid work: Zoom to acquire Workvivo to bolster the employee experience offering.

The employee communication and engagement platform will give Zoom customers new ways to keep employees informed, engaged, and connected in today’s hybrid work model.

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It opened the trading session at $68.00, the shares rose to $69.20 and dropped to $67.50, the range by which the price of stock traded the whole day. The daily chart for ZM points out that the company has recorded -9.51% loss over the past six months. However, it is still -6.4% lower than its most recent low trading price.

If we look at the average trading volume of 3.89M shares, ZM reached to a volume of 7919169 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 $85.10 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 2.80. 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.

Rosenblatt have made an estimate for Zoom Video Communications Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 24, 2023. While these analysts kept the previous recommendation, MKM Partners raised their target price from $100 to $75. The new note on the price target was released on January 23, 2023, representing the official price target for Zoom Video Communications Inc. stock. Previously, the target price had yet another raise to $80, while Wedbush analysts kept a Neutral rating on ZM stock. On October 11, 2022, analysts decreased their price target for ZM shares from 130 to 90.

The Average True Range (ATR) for Zoom Video Communications Inc. is set at 2.61, with the Price to Sales ratio for ZM stock in the period of the last 12 months amounting to 4.57. The Price to Book ratio for the last quarter was 1.65, with the Price to Cash per share for the same quarter was set at 18.24. Price to Free Cash Flow for ZM in the course of the last twelve months was 16.91 with Quick ratio for the last quarter at 3.70.

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 -4.99. With this latest performance, ZM shares dropped by -4.21% in over the last four-week period, additionally sinking by -9.51% over the last 6 months – not to mention a drop of -41.14% 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 41.77, with the RSI for the last a single of trading hit 38.37, and the three-weeks RSI is set at 43.84 for Zoom Video Communications Inc. [ZM]. The present Moving Average for the last 50 days of trading for this stock 72.31, while it was recorded at 68.96 for the last single week of trading, and 80.80 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 +5.59 and a Gross Margin at +69.05. Zoom Video Communications Inc.’s Net Margin is presently recorded at +2.36.

Return on Total Capital for ZM is now 4.03, given the latest momentum, and Return on Invested Capital for the company is 1.71. Return on Equity for this stock inclined to 1.73, with Return on Assets sitting at 1.32. 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 1.55. Additionally, ZM Total Debt to Total Capital is recorded at 1.53, with Total Debt to Total Assets ending up at 1.19. Long-Term Debt to Equity for the company is recorded at 1.19, with the Long-Term Debt to Total Capital now at 1.17.

Reflecting on the efficiency of the workforce at the company, Zoom Video Communications Inc. [ZM] managed to generate an average of $12,223 per employee. Receivables Turnover for the company is 8.99 with a Total Asset Turnover recorded at a value of 0.56.Zoom Video Communications Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.70 and a Current Ratio set at 3.70.

Zoom Video Communications Inc. [ZM]: An earnings per share (EPS) analysis

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 -10.37%.

An analysis of insider ownership at Zoom Video Communications Inc. [ZM]

There are presently around $11,216 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 20,207,290, which is approximately 17.999% of the company’s market cap and around 9.34% of the total institutional ownership; BLACKROCK INC., holding 12,732,101 shares of the stock with an approximate value of $884.88 million in ZM stocks shares; and ARK INVESTMENT MANAGEMENT LLC, currently with $755.26 million in ZM stock with ownership of nearly 2.366% of the company’s market capitalization.

Positions in Zoom Video Communications Inc. stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 275 institutional holders increased their position in Zoom Video Communications Inc. [NASDAQ:ZM] by around 17,172,550 shares. Additionally, 331 investors decreased positions by around 13,681,894 shares, while 130 investors held positions by with 130,523,414 shares. The mentioned changes placed institutional holdings at 161,377,858 shares, according to the latest SEC report filing. ZM stock had 92 new institutional investments in for a total of 2,210,580 shares, while 87 institutional investors sold positions of 3,283,432 shares during the same period.


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