Zoom Video Communications (NASDAQ:ZM) Sets New 1-Year High – Still a Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $81.92 and last traded at $81.92, with a volume of 7990 shares trading hands. The stock had previously closed at $81.46.

Analysts Set New Price Targets

Several research firms have weighed in on ZM. Bank of America dropped their price target on Zoom Video Communications from $78.00 to $75.00 and set a “neutral” rating for the company in a research note on Thursday, August 22nd. Stifel Nicolaus lifted their price target on shares of Zoom Video Communications from $65.00 to $70.00 and gave the company a “hold” rating in a report on Thursday, October 10th. Rosenblatt Securities restated a “buy” rating and set a $78.00 price objective on shares of Zoom Video Communications in a research report on Friday, October 4th. Wedbush assumed coverage on Zoom Video Communications in a research note on Thursday, October 17th. They set an “outperform” rating and a $85.00 price target for the company. Finally, UBS Group raised Zoom Video Communications to a “hold” rating in a research note on Friday, July 26th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, Zoom Video Communications has a consensus rating of “Hold” and a consensus price target of $75.32.

Zoom Video Communications Stock Performance

The firm has a market capitalization of $26.57 billion, a P/E ratio of 30.94, a P/E/G ratio of 7.38 and a beta of -0.05. The stock’s 50 day simple moving average is $70.79 and its 200 day simple moving average is $64.28.

Zoom Video Communications (NASDAQ:ZM) last announced its quarterly earnings data on Wednesday, August 21st. The company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.18. The company had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Zoom Video Communications had a return on equity of 10.77% and a net margin of 19.08%. Zoom Video Communications’s revenue was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.55 earnings per share. On average, analysts anticipate that Zoom Video Communications, Inc. will post 2.74 earnings per share for the current year.

Insider Activity at Zoom Video Communications

In other news, CEO Eric S. Yuan sold 178,571 shares of the company’s stock in a transaction that occurred on Tuesday, November 5th. The shares were sold at an average price of $76.91, for a total value of $13,733,895.61. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, COO Aparna Bawa sold 831 shares of the firm’s stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $66.29, for a total value of $55,086.99. Following the sale, the chief operating officer now directly owns 1,978 shares in the company, valued at approximately $131,121.62. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Eric S. Yuan sold 178,571 shares of the business’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $76.91, for a total transaction of $13,733,895.61. The disclosure for this sale can be found here. Insiders sold 372,121 shares of company stock worth $27,095,467 over the last three months. 10.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoom Video Communications

Several institutional investors and hedge funds have recently bought and sold shares of ZM. Daiwa Securities Group Inc. grew its stake in shares of Zoom Video Communications by 7.8% during the third quarter. Daiwa Securities Group Inc. now owns 22,982 shares of the company’s stock worth $1,603,000 after acquiring an additional 1,669 shares during the last quarter. Swedbank AB increased its stake in Zoom Video Communications by 6.4% during the 3rd quarter. Swedbank AB now owns 41,896 shares of the company’s stock valued at $2,922,000 after purchasing an additional 2,518 shares in the last quarter. Algert Global LLC raised its holdings in shares of Zoom Video Communications by 10.7% in the third quarter. Algert Global LLC now owns 9,841 shares of the company’s stock worth $686,000 after buying an additional 951 shares during the last quarter. Cerity Partners LLC lifted its stake in shares of Zoom Video Communications by 263.9% during the third quarter. Cerity Partners LLC now owns 92,464 shares of the company’s stock worth $6,448,000 after buying an additional 67,054 shares during the period. Finally, Eagle Asset Management Inc. purchased a new stake in shares of Zoom Video Communications during the third quarter valued at $62,038,000. 66.54% of the stock is owned by hedge funds and other institutional investors.

About Zoom Video Communications

Zoom Video Communications, Inc provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.