Zoom Video Communications (NASDAQ:ZM) Stock Price Rises 5.8% - Is It Time to Invest?

On Tuesday, shares of Zoom Video Communications, Inc. (NASDAQ:ZM) experienced a notable increase of 5.8%. The stock reached a peak price of $87.78 before settling at $86.77. During the trading session, approximately 1,569,491 shares were exchanged, representing a 29% decline from the average daily volume of 2,215,046 shares. This upward movement follows a previous closing price of $82.00.

Analyst Rating Updates

Various financial analysts have recently provided updates regarding ZM shares. On January 10th, Needham & Company LLC reaffirmed a "hold" rating for Zoom Video Communications. Barclays, in a report dated November 27th, increased their price target for the stock from $70.00 to $85.00 while maintaining an "equal weight" rating. Similarly, on January 7th, Wells Fargo & Company upgraded the company from an "underweight" rating to "equal weight" and adjusted their target price from $70.00 to $85.00.

Jefferies Financial Group made a notable change by upgrading the stock from a "hold" rating to a "buy" rating, raising their price target from $85.00 to $100.00 in a December 19th report. Additionally, Morgan Stanley updated its price objective from $86.00 to $96.00 with an "equal weight" rating on December 18th. Presently, a total of sixteen analysts have assigned a hold rating, eight have given a buy rating, and one has provided a strong buy rating. According to MarketBeat.com, the average rating for the stock stands at "Hold" with a consensus target price of $89.10.

Performance Metrics

Zoom Video Communications has a 50-day simple moving average of $82.55 and a 200-day simple moving average of $72.76. The company holds a market capitalization of $27.17 billion, with a price-to-earnings (PE) ratio of 29.55 and a price-to-earnings-growth (PEG) ratio of 4.99. Its beta value is reported at -0.01, indicating that the stock is less volatile compared to the overall market.

Insider Trading Activity

In recent insider trading activities, CEO Eric S. Yuan sold 178,571 shares on November 5th for an average price of $76.91, resulting in a total sale value of $13,733,895.61. This transaction was disclosed through an SEC filing. Additionally, Director Jonathan Chadwick sold 25,000 shares on January 15th, with an average sale price of $80.33, totaling $2,008,250.00. Following this sale, Chadwick now owns 1,514 shares, valued at approximately $121,619.62. It is noteworthy that in the last quarter, insiders sold a total of 477,481 shares worth about $37,774,948, representing 10.78% of the stock owned by corporate insiders.

Institutional Investors' Movements

In terms of institutional activities, several large investment firms have amended their stakes in Zoom Video Communications recently. Global X Japan Co. Ltd. increased its holdings by 127.5% in the fourth quarter, now owning 339 shares valued at $28,000 after acquiring an additional 190 shares. Avior Wealth Management LLC saw a substantial increase in its position, up by 291.2% during the same quarter, amounting to 356 shares worth $29,000.

Geneos Wealth Management Inc. made a new investment in Zoom Video Communications, capturing a position worth approximately $39,000 in the fourth quarter. Moreover, Truvestments Capital LLC added a new stake valued at about $37,000 in the third quarter, and Allworth Financial LP enhanced its holdings by 43.8% during the same period, now owning 591 shares worth $41,000. Currently, institutional and hedge fund investors hold about 66.54% of the company's stock.

About Zoom Video Communications

Zoom Video Communications, Inc. is known for providing a comprehensive unified communications platform across multiple regions, including the Americas, Asia Pacific, Europe, the Middle East, and Africa. Their offerings include Zoom Meetings, which facilitates HD video, voice, chat, and content sharing across various devices; Zoom Phone, a cloud-based phone system for enterprise deployment; and Zoom Chat, a feature for sharing messages and multimedia across digital platforms.

Investment Considerations

Before making investment decisions regarding Zoom Video Communications, investors should conduct thorough research. It's important to note that while the stock has received hold ratings among analysts, alternative stocks may be recommended by top-rated analysts. Investors looking for potential high-growth opportunities should explore various options carefully and consider expert advice.

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