Zoom Video Communications (ZM) Stock Price, News & Analysis

Company Overview

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. It also provides Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; Zoom Events, which enables users to manage and host internal and external virtual events; OnZoom, a prosumer-focused virtual event platform and marketplace for Zoom users to create, host, and monetize online events; and Zoom Webinars to provide video presentations to large audiences from many devices. In addition, the company offers Zoom Developer Platform that enables developers, platform integrators, service providers, and customers to build apps and integrations using Zoom's video-based communications solutions, as well as integrate Zoom's technology into their products and services; Zoom App Marketplace, which helps developers to publish their apps, as well as third-party integrations of Zoom; and Zoom Contact Center, an omnichannel contact center solution. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

Key Stats

• Today's Range: $65.94 to $67.91
• 50-Day Range: $55.32 to $71.90
• 52-Week Range: $55.06 to $74.77
• Volume: 2.57 million shs
• Average Volume: 3.37 million shs
• Market Capitalization: $20.42 billion
• P/E Ratio: 24.64
• Dividend Yield: N/A
• Price Target: $74.68
• Consensus Rating: Hold

Zoom Video Communications Stock Analysis - MarketRank™

Zoom Video Communications scored higher than 91% of companies evaluated by MarketBeat, and ranked 194th out of 670 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.1 / 5
• Analyst Rating: Hold

Consensus Rating

Zoom Video Communications has received a consensus rating of Hold. The company's average rating score is 2.14, and is based on 5 buy ratings, 14 hold ratings, and 2 sell ratings.

Amount of Analyst Coverage

Zoom Video Communications has been the subject of 9 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -5.47%

Earnings Growth

Earnings for Zoom Video Communications are expected to decrease by -5.47% in the coming year, from $2.74 to $2.59 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Zoom Video Communications is 24.64, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 139.45.

Price to Earnings Ratio vs. Sector

The P/E ratio of Zoom Video Communications is 24.64, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 275.17.

Price to Earnings Growth Ratio

Zoom Video Communications has a PEG Ratio of 5.83. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Zoom Video Communications has a P/B Ratio of 2.38. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.40% of the outstanding shares of Zoom Video Communications have been sold short.

Short Interest Ratio / Days to Cover

Zoom Video Communications has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Zoom Video Communications has recently increased by 27.39%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Zoom Video Communications does not currently pay a dividend.

Dividend Growth

Zoom Video Communications does not have a long track record of dividend growth.

Sustainability and ESG

• Score: 3.8 / 5
• Environmental Score: -0.34

Percentage of Shares Shorted

3.40% of the outstanding shares of Zoom Video Communications have been sold short.

Short Interest Ratio / Days to Cover

Zoom Video Communications has a short interest ratio ("days to cover") of 3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Zoom Video Communications has recently increased by 27.39%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 0.84

News Sentiment

Zoom Video Communications has a news sentiment score of 0.84. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.54 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 20 news articles for Zoom Video Communications this week, compared to 12 articles on an average week.

Search Interest

64 people have searched for ZM on MarketBeat in the last 30 days. This is an increase of 60% compared to the previous 30 days.

MarketBeat Follows

Only 7 people have added Zoom Video Communications to their MarketBeat watchlist in the last 30 days. This is a decrease of -61% compared to the previous 30 days.

Company Ownership

• Score: 3.3 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Zoom Video Communications insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $7,070,162.00 in company stock.

Percentage Held by Insiders

10.78% of the stock of Zoom Video Communications is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

66.54% of the stock of Zoom Video Communications is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

ZM Stock Analysis - Frequently Asked Questions

How have ZM shares performed this year?

Zoom Video Communications' stock was trading at $71.91 at the beginning of the year. Since then, ZM shares have decreased by 8.2% and is now trading at $66.04.
View the best growth stocks for 2024 here.

How were Zoom Video Communications' earnings last quarter?

Zoom Video Communications, Inc. (NASDAQ:ZM) issued its quarterly earnings results on Wednesday, August, 21st. The company reported $1.39 earnings per share for the quarter, beating analysts' consensus estimates of $1.21 by $0.18. The firm's revenue was up 2.1% compared to the same quarter last year.

When did Zoom Video Communications IPO?

Zoom Video Communications (ZM) raised $627 million in an initial public offering on Thursday, April 18th 2019. The company issued 20,900,000 shares at $28.00-$32.00 per share. Morgan Stanley, J. P. Morgan, Goldman Sachs and Credit Suisse acted as the underwriters for the IPO and BofA Merriil Lynch, RBC Capital Markets, Wells Fargo Securities, JMP Securities, KeyBanc Capital Markets, Piper Jaffray, Stifel and William Blair were co-managers.

Who are Zoom Video Communications' major shareholders?

Top institutional shareholders of Zoom Video Communications include AQR Capital Management LLC (1.85%), Pacer Advisors Inc. (1.70%), Acadian Asset Management LLC (1.59%) and Sumitomo Mitsui Trust Holdings Inc. (1.21%). Insiders that own company stock include Santiago Subotovsky, Velchamy Sankarlingam, Eric S Yuan, Aparna Bawa, Shane Crehan, Jonathan Chadwick, Carl M Eschenbach, Ryan Azus and Kelly Steckelberg.
View institutional ownership trends.

How do I buy shares of Zoom Video Communications?

Shares of ZM stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Zoom Video Communications own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Zoom Video Communications investors own include NVIDIA (NVDA), Tesla (TSLA), Netflix (NFLX), Block (SQ), Alibaba Group (BABA), Shopify (SHOP) and Salesforce (CRM).

Company Calendar

• Last Earnings: 8/21/2024
• Today: 9/18/2024
• Next Earnings (Estimated): 11/18/2024
• Fiscal Year End: 1/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Computer programming, data processing, & other computer related
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:ZM
• CUSIP: N/A
• CIK: 1585521
• Web: www.zoom.us
• Phone: (888) 799-9666
• Fax: N/A
• Employees: 7,420
• Year Founded: 2011

Price Target and Rating

• Average Stock Price Target: $74.68
• High Stock Price Target: $95.00
• Low Stock Price Target: $60.00
• Potential Upside/Downside: +13.1%
• Consensus Rating: Hold
• Rating Score (0-4): 2.14
• Research Coverage: 21 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $2.68
• Trailing P/E Ratio: 24.64
• Forward P/E Ratio: 24.10
• P/E Growth: 5.83
• Net Income: $637.46 million
• Net Margins: 19.08%
• Pretax Margin: 24.50%
• Return on Equity: 10.77%
• Return on Assets: 8.67%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 4.56
• Quick Ratio: 4.56

Sales & Book Value

• Annual Sales: $4.59 billion
• Price / Sales: 4.45
• Cash Flow: $3.60 per share
• Price / Cash Flow: 18.36
• Book Value: $27.70 per share
• Price / Book: 2.38

Miscellaneous

• Outstanding Shares: 309,277,000
• Free Float: 275,937,000
• Market Cap: $20.42 billion
• Optionable: Optionable
• Beta: -0.05