Zoom Video Communications Inc. (ZM): Forget the loss, time to buy ZM Stock

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Zoom Video Communications Inc. (NASDAQ:ZM) changes shares on last trading session, with a change of 2.08% or $5.56 shares. The trading closed at $267.34 throughout the day. After the session, the Communication Services sector daily volume shifted to 4.51 million while its average volume is 9.40M. In other hand, the ZM market cap reached to $75.80B. While, its current target price is $226.96.

On July 21, 2020, Zoom to open tech centre in India’s Bengaluru. According to the news reported on Reuters, Zoom Video Communications Inc said on Tuesday it will open a technology centre in the southern Indian city of Bengaluru and soon begin hiring as part of an expansion push in the country.

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is up 8.13% and up 4.12% for month. Its quarterly performance was 82.43% above, while its half year performance is up 213.71%. ZM yearly performance stood at positive 201.78% and rise 301.09% for year-to-date. Current recommendation for Zoom Video Communications Inc. is 2.50.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. ZM EPS (TTM) for 12-month is 0.18. EPS for this year is 271.40%, while for the next year its value is 1.55. Sales growth for the current quarter is 39.20 while its EPS Q/Q reached 1122.90%. It has an EPS of next five years will be up 38.46%.

Let’s take a look on the analyst recommendations on ZM for the current month and previous month. For the current month, 10 of 31 analysts recommend stock as Buy while 5 as Sell, 3 as overweight, 0 as underweight and 13 as Hold. As compared with the previous month ratings, 31 analysts participate in stock recommendation. Out of 31, 5 rated it sell, 11 rated it as Buy and 12 as Hold Ratings. On the other hand, target price ranges from $156.25 – $300.00. Average target price for ZM was reached at $223.23.

Morgan Stanley, Baillie Gifford and Company and Artisan Partners Limited Partnership are the top three holders in Zoom Video Communications Inc. (ZM) stock. On Mar 30, 2020, Morgan Stanley has 12.19 million shares which valued 1.78 billion. On Mar 30, 2020, Baillie Gifford and Company owned 7.17 million shares which valued at 1.05 billion. On Mar 30, 2020, Artisan Partners Limited Partnership has a total of 6.37 million shares which valued at 931.49 million. In the end, Artisan Partners Limited Partnership have 3.50% shares outstanding of Zoom Video Communications Inc. (ZM) on Mar 30, 2020. The insider ownership moved to 0.30% and institutional holding shifted to 45.70%.

The company posted an EPS (TTM) of 0.18. According to the most recent quarter report on (Jul 2020), 26 analysts estimated an average EPS of 0.45, while 0.08 EPS posted a year ago period. Analyst Estimated EPS for ZM published in the report was $0.38 – $0.54 during the same period. Comparing with last year, the average estimated EPS was 0.08 which is lower than 0.2 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for ZM rise 101.22% for period of 200 days. SMA for 50 days was 13.76% which is showing green signal, while SMA-20 was 5.62%. The moving average value for Zoom Video Communications Inc. (ZM) is 10.65M and 4.08% for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in ZM stock. On Jul 20, Pelosi Janine, Chief Marketing Officer, sold 9,375 trading shares at the cost of $252.53, which valued at 2.37 million. On Jul 17, Steckelberg Kelly, Chief Financial Officer, sold 11,066 shares at the cost of $246.25, with total shares of 1,388. On Jul 16, Bawa Aparna, Chief Operating Officer, sold 7,500 shares at the cost of 250.39. After this transaction, Bawa Aparna total shares reached to 230,322 which valued at 1.88 million.