Zoom Video Communications (NASDAQ:ZM) Sets New 52-Week High – Should You Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares hit a new 52-week high on Tuesday . The company traded as high as $74.87 and last traded at $74.82, with a volume of 341322 shares traded. The stock had previously closed at $73.85.

Analysts Set New Price Targets

ZM has been the subject of a number of recent analyst reports. Benchmark increased their price target on shares of Zoom Video Communications from $83.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, October 10th. UBS Group upgraded shares of Zoom Video Communications to a “hold” rating in a research note on Friday, July 26th. Royal Bank of Canada reissued an “outperform” rating and set a $95.00 price target on shares of Zoom Video Communications in a research report on Thursday, October 10th. Wedbush assumed coverage on Zoom Video Communications in a research report on Thursday, October 17th. They issued an “outperform” rating and a $85.00 price objective for the company. Finally, Wells Fargo & Company boosted their target price on Zoom Video Communications from $55.00 to $60.00 and gave the stock an “underweight” rating in a report on Thursday, August 22nd. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $75.32.

Zoom Video Communications Stock Performance

The company has a market cap of $23.02 billion, a P/E ratio of 27.90, a P/E/G ratio of 6.26 and a beta of -0.04. The stock’s fifty day moving average price is $69.39 and its two-hundred day moving average price is $63.21.

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

Insider Activity at Zoom Video Communications

In related news, CEO Eric S. Yuan sold 37,206 shares of Zoom Video Communications stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $68.20, for a total transaction of $2,537,449.20. Following the sale, the chief executive officer now directly owns 114,341 shares of the company’s stock, valued at approximately $7,798,056.20. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CEO Eric S. Yuan sold 37,206 shares of the firm’s stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $68.20, for a total transaction of $2,537,449.20. Following the sale, the chief executive officer now owns 114,341 shares of the company’s stock, valued at $7,798,056.20. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Shane Crehan sold 1,550 shares of the business’s stock in a transaction on Tuesday, September 10th. The stock was sold at an average price of $66.87, for a total value of $103,648.50. Following the sale, the chief accounting officer now owns 1,463 shares in the company, valued at $97,830.81. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 188,477 shares of company stock valued at $12,842,978 over the last ninety days. 10.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ZM. Sanctuary Advisors LLC acquired a new stake in shares of Zoom Video Communications in the 2nd quarter worth about $763,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Zoom Video Communications by 9.7% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 441,168 shares of the company’s stock valued at $30,171,000 after purchasing an additional 38,924 shares in the last quarter. Klein Pavlis & Peasley Financial Inc. bought a new stake in Zoom Video Communications during the third quarter worth $827,000. Andra AP fonden raised its position in Zoom Video Communications by 78.0% in the 2nd quarter. Andra AP fonden now owns 238,700 shares of the company’s stock valued at $14,129,000 after buying an additional 104,600 shares during the last quarter. Finally, Swedbank AB bought a new position in Zoom Video Communications during the 1st quarter valued at $2,100,000. Institutional investors own 66.54% of the company’s stock.

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.