Zoom Video Communications Inc. (NASDAQ: ZM) stock jumped 4.45% on Friday to $112.97 against a previous-day closing price of $108.16. With 2.65 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.35 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $114.00 whereas the lowest price it dropped to was $109.36. The 52-week range on ZM shows that it touched its highest point at $404.35 and its lowest point at $79.03 during that stretch. It currently has a 1-year price target of $152.02.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ZM was up-trending over the past week, with a rise of 6.67%, but this was down by -6.19% over a month. Three-month performance surged to 9.12% while six-month performance fell -27.43%. The stock lost -69.87% in the past year, while it has lost -38.57% so far this year. A look at the trailing 12-month EPS for ZM yields 4.12 with Next year EPS estimates of 4.01. For the next quarter, that number is 0.93. This implies an EPS growth rate of 99.60% for this year and 7.43% for next year. EPS is expected to grow by 13.58% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 141.50%.
Float and Shares Shorts:
At present, 299.15 million ZM shares are outstanding with a float of 220.52 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.32 million, which was 3.46% higher than short shares on Jun 14, 2022. In addition to Mr. Eric S. Yuan as the firm’s Founder, CEO & Chairman, Ms. Kelly Steckelberg serves as its CFO & Treasurer.
Through their ownership of 61.45% of ZM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.27% of ZM, in contrast to 30.19% held by mutual funds. Shares owned by individuals account for 2.56%. As the largest shareholder in ZM with 5.03% of the stake, The Vanguard Group, Inc. holds 12,661,700 shares worth 12,661,700. A second-largest stockholder of ZM, T. Rowe Price Associates, Inc., holds 9,817,784 shares, controlling over 3.90% of the firm’s shares. ARK Investment Management LLC is the third largest shareholder in ZM, holding 9,576,018 shares or 3.80% stake. With a 3.10% stake in ZM, the ARK Innovation ETF is the largest stakeholder. A total of 7,807,464 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.51% of ZM stock, is the second-largest Mutual Fund holder. It holds 6,311,253 shares valued at 681.43 million. Invesco QQQ Trust holds 1.45% of the stake in ZM, owning 3,645,718 shares worth 393.63 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZM since 32 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 19 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ZM analysts setting a high price target of $190.00 and a low target of $90.00, the average target price over the next 12 months is $126.31. Based on these targets, ZM could surge 68.19% to reach the target high and fall by -20.33% to reach the target low. Reaching the average price target will result in a growth of 11.81% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ZM will report FY 2023 earnings on 02/28/2023. Analysts have provided yearly estimates in a range of $4.74 being high and $3.68 being low. For ZM, this leads to a yearly average estimate of $3.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Zoom Video Communications Inc. surprised analysts by $0.15 when it reported $1.03 EPS against a consensus estimate of $0.88. The surprise factor in the prior quarter was $0.22. Based on analyst estimates, the high estimate for the next quarter is $1.25 and the low estimate is $0.89. The average estimate for the next quarter is thus $0.94.
Summary of Insider Activity:
Insiders traded ZM stock several times over the past three months with 19 Buys and 42 Sells. In these transactions, 58,209 shares were bought while 52,193 shares were sold. The number of buy transactions has increased to 82 while that of sell transactions has risen to 309 over the past year. The total number of shares bought during that period was 936,059 while 911,482 shares were sold.