Zoom Video Communications (NASDAQ:ZM) Sees Large Volume Increase Following Analyst Upgrade

Shares of Zoom Video Communications, Inc. (NASDAQ:ZM) saw unusually-high trading volume on Wednesday after Zacks Investment Research upgraded the stock from a hold rating to a buy rating. Zacks Investment Research now has a $219.00 price target on the stock. Approximately 102,410 shares traded hands during mid-day trading, a decline of 98% from the previous session’s volume of 4,191,418 shares.The stock last traded at $208.55 and had previously closed at $206.64.

According to Zacks, “Zoom gained continued traction from the remote-working and online-learning wave in third-quarter fiscal 2022. Enterprise customer base grew rapidly. Ease of deployment, use, and management, and solid scalability continue making Zoom’s software more popular among its customers. The company’s expanding international presence is a key catalyst. Its efforts to eliminate the security and privacy loopholes as well as new hardware and Zoom From Home solution’s launch are expected to help in expanding clientele. The company’s strong free cash-flow generating ability is noteworthy. However, Zoom’s growth pace is slowing down as economies open up. Stiff competition from the likes of Microsoft and Cisco in the video-communication space does not bode well. Shares have underperformed the industry on a year-to-date basis.”

Other analysts have also issued research reports about the stock. Wells Fargo & Company lowered their price objective on shares of Zoom Video Communications from $275.00 to $245.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Needham & Company LLC reissued a “hold” rating on shares of Zoom Video Communications in a research report on Friday, October 1st. KeyCorp reissued a “buy” rating and issued a $398.00 price target on shares of Zoom Video Communications in a research report on Tuesday, September 14th. Piper Sandler lowered their price target on shares of Zoom Video Communications from $369.00 to $299.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Robert W. Baird boosted their price target on shares of Zoom Video Communications from $300.00 to $335.00 and gave the company an “outperform” rating in a research report on Tuesday. Two analysts have rated the stock with a sell rating, fifteen have given a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $328.41.

In other news, COO Aparna Bawa sold 2,593 shares of the company’s stock in a transaction on Tuesday, September 7th. The shares were sold at an average price of $300.07, for a total value of $778,081.51. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Eric S. Yuan sold 15,625 shares of the company’s stock in a transaction on Tuesday, November 9th. The shares were sold at an average price of $260.32, for a total transaction of $4,067,500.00. The disclosure for this sale can be found here. In the last three months, insiders sold 109,697 shares of company stock valued at $30,180,093. Corporate insiders own 12.27% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD raised its holdings in Zoom Video Communications by 42.3% in the 2nd quarter. Price T Rowe Associates Inc. MD now owns 17,839,977 shares of the company’s stock worth $6,904,607,000 after purchasing an additional 5,302,703 shares in the last quarter. Morgan Stanley increased its stake in shares of Zoom Video Communications by 5.9% in the 3rd quarter. Morgan Stanley now owns 13,111,368 shares of the company’s stock worth $3,428,622,000 after acquiring an additional 726,667 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of Zoom Video Communications by 4.6% in the 2nd quarter. Vanguard Group Inc. now owns 12,968,696 shares of the company’s stock worth $5,019,275,000 after acquiring an additional 565,755 shares in the last quarter. BlackRock Inc. increased its stake in shares of Zoom Video Communications by 0.3% in the 3rd quarter. BlackRock Inc. now owns 10,482,052 shares of the company’s stock worth $2,741,057,000 after acquiring an additional 29,955 shares in the last quarter. Finally, State Street Corp increased its stake in shares of Zoom Video Communications by 19.3% in the 2nd quarter. State Street Corp now owns 4,684,890 shares of the company’s stock worth $1,813,193,000 after acquiring an additional 757,122 shares in the last quarter. Institutional investors and hedge funds own 46.51% of the company’s stock.

The company’s 50 day moving average is $263.49 and its 200-day moving average is $316.90. The company has a market capitalization of $61.89 billion, a P/E ratio of 62.93, a price-to-earnings-growth ratio of 3.58 and a beta of -1.28.

Zoom Video Communications (NASDAQ:ZM) last issued its quarterly earnings results on Monday, November 22nd. The company reported $1.11 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.09 by $0.02. The company had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.02 billion. Zoom Video Communications had a net margin of 27.58% and a return on equity of 29.83%. Zoom Video Communications’s quarterly revenue was up 35.2% compared to the same quarter last year. During the same period last year, the business earned $0.66 EPS. As a group, analysts anticipate that Zoom Video Communications, Inc. will post 3.33 EPS for the current fiscal year.

About Zoom Video Communications (NASDAQ:ZM)

Zoom Video Communications, Inc engages in the provision of video-first communications platform. The firm offers meetings, chat, rooms and workspaces, phone systems, video webinars, marketplace, and developer platform products. It serves the education, finance, government, and healthcare industries. Its platform helps people to connect through voice, chat, content sharing, and face-to-face video experiences.

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