Zoom Video Communications (NASDAQ:ZM) Reaches New 12-Month High - Should You Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM - Get Free Report) hit a new 52-week high on Tuesday . The company traded as high as $76.83 and last traded at $76.24, with a volume of 174295 shares trading hands. The stock had previously closed at $75.54.

Wall Street Analyst Weigh In

ZM has been the subject of a number of recent research reports. UBS Group upgraded Zoom Video Communications to a "hold" rating in a report on Friday, July 26th. Wells Fargo & Company lifted their target price on Zoom Video Communications from $55.00 to $60.00 and gave the company an "underweight" rating in a report on Thursday, August 22nd. Stifel Nicolaus lifted their target price on Zoom Video Communications from $65.00 to $70.00 and gave the company a "hold" rating in a report on Thursday, October 10th. Deutsche Bank Aktiengesellschaft lifted their price target on Zoom Video Communications from $71.00 to $75.00 and gave the stock a "hold" rating in a report on Friday, August 23rd. Finally, Wedbush assumed coverage on Zoom Video Communications in a report on Thursday, October 17th. They set an "outperform" rating and a $85.00 price target for the company. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and six have assigned a buy rating to the company. According to MarketBeat, Zoom Video Communications has a consensus rating of "Hold" and a consensus target price of $75.32.

Zoom Video Communications Stock Performance

The firm has a market cap of $23.93 billion, a price-to-earnings ratio of 27.87, a PEG ratio of 6.52 and a beta of -0.05. The business has a fifty day moving average of $69.83 and a two-hundred day moving average of $63.69.

Zoom Video Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Wednesday, August 21st. The company reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.18. The business 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%. The company's revenue was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.55 EPS. On average, equities research analysts forecast that Zoom Video Communications, Inc. will post 2.74 earnings per share for the current year.

Insider Activity at Zoom Video Communications

In other Zoom Video Communications news, Director Jonathan Chadwick sold 12,500 shares of the stock in a transaction on Tuesday, October 29th. The stock was sold at an average price of $75.04, for a total transaction of $938,000.00. Following the transaction, the director now owns 1,514 shares of the company's stock, valued at $113,610.56. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. In related news, CEO Eric S. Yuan sold 35,722 shares of the stock in a transaction on Monday, October 21st. The stock was sold at an average price of $71.45, for a total value of $2,552,336.90. Following the completion of the sale, the chief executive officer now directly owns 57,371 shares in the company, valued at approximately $4,099,157.95. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jonathan Chadwick sold 12,500 shares of the stock in a transaction on Tuesday, October 29th. The shares were sold at an average price of $75.04, for a total value of $938,000.00. Following the completion of the sale, the director now owns 1,514 shares of the company's stock, valued at approximately $113,610.56. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 198,557 shares of company stock valued at $13,645,167. 10.78% of the stock is owned by corporate insiders.

Institutional Trading of Zoom Video Communications

Large investors have recently added to or reduced their stakes in the stock. Sanctuary Advisors LLC acquired a new stake in shares of Zoom Video Communications during the second quarter valued at about $763,000. Klein Pavlis & Peasley Financial Inc. acquired a new stake in shares of Zoom Video Communications during the third quarter valued at about $827,000. Andra AP fonden grew its stake in shares of Zoom Video Communications by 78.0% during the second quarter. Andra AP fonden now owns 238,700 shares of the company's stock valued at $14,129,000 after acquiring an additional 104,600 shares in the last quarter. Pallas Capital Advisors LLC acquired a new stake in shares of Zoom Video Communications during the third quarter valued at about $1,245,000. Finally, Swedbank AB acquired a new stake in shares of Zoom Video Communications during the first quarter valued at about $2,100,000. 66.54% of the stock is currently owned by institutional investors and hedge funds.

Zoom Video Communications Company Profile

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.