The Vanguard Group, Inc. recently announced the acquisition of new stake in Zoom Video Communications Inc (NASDAQ:ZM). The institutional investor has increased its shareholding in the Technology company by 4.62% to 22.17 million shares with purchase of 0.98 million shares. This fresh investment now brings its stake to 8.84% valued currently at $1.33 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.46 million to 9.92 million shares. And SSgA Funds Management, Inc. has lifted its position by 5.56% or 0.29 million shares – to 5.45 million shares.
With over 6.53 million Zoom Video Communications Inc (ZM) shares trading Monday and a closing price of $72.58 on the day, the dollar volume was approximately $473.87 million. The shares have shown a positive half year performance of 4.91% and its price on 12/11/23 lost nearly -0.66%. Currently, there are 247.15M common shares owned by the public and among those 228.84M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 34 analysts who have offered their price forecasts for ZM have a consensus price objective of $80.30. The analysts have set the share’s price value over the next 12 months at a high of $105.00 and a low of $67.00. The average price target is 9.61% above its recent price level and a downside to the estimated low will see the stock lose -8.33% over that period. But an upside of 30.88% will see the stock hit the forecast high price target while median target price for the stock is $79.00.
Insiders at the company have transacted a total of 175 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 54 of these insider trades were purchases, accounting for 524,825 shares. Insider sales of the common stock occurred on 121 occasions, with total insider shares sold totaling 469,671 shares.
The top 3 mutual fund holders in Zoom Video Communications Inc are ARK Innovation ETF, Vanguard Total Stock Market ETF, and Vanguard Mid Cap Index Fund. ARK Innovation ETF owns 8.03 million shares of the company’s stock, all valued at over $481.62 million. The company sold 23280.0 shares recently to bring their total holdings to about 3.20% of the shares outstanding. Vanguard Total Stock Market ETF bought 11792.0 shares to see its total holdings expand to 7.16 million shares valued at over $429.18 million and representing 2.85% of the shares outstanding. Vanguard Mid Cap Index Fund bought 13759.0 shares to bring its total holdings to over 5.2 million shares at a value of $311.77 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.07% of the shares outstanding.
Shares of Zoom Video Communications Inc (NASDAQ: ZM) opened at $71.82, down -$1.24 from a prior closing price of $73.06. However, the script later moved the day high at 73.73, down -0.66%. The company’s stock has a 5-day price change of 6.48% and 3.29% over the past three months. ZM shares are trading 7.14% year to date (YTD), with the 12-month market performance up to 0.30% higher. It has a 12-month low price of $58.87 and touched a high of $85.13 over the same period. ZM has an average intraday trading volume of 3.44 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 9.15%, 12.49%, and 7.50% respectively.
Institutional ownership of Zoom Video Communications Inc (NASDAQ: ZM) shares accounts for 55.75% of the company’s 247.15M shares outstanding. Mutual fund holders own 32.29%, while other institutional holders and individual stakeholders account for 35.56% and 2.62% respectively.
It has a market capitalization of $22.10B and a beta (3y monthly) value of -0.10. The stock’s trailing 12-month PE ratio is 97.37, while the earnings-per-share (ttm) stands at $0.75. The company has a PEG of 64.91 and a Quick Ratio of 4.15 with the debt-to-equity ratio at 0.01. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.40% over the week and 3.36% over the month.
Analysts forecast that Zoom Video Communications Inc (ZM) will achieve an EPS of $1.07 for the current quarter, $1.05 for the next quarter and $4.36 for 2025. The lowest estimate earnings-per-share for the quarter is $1.02 while analysts give the company a high EPS estimate of $1.23. Comparatively, EPS for the current quarter was $1.22 a year ago. Earnings per share for the fiscal year are expected to increase by 13.25%, and -5.44% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 34 brokerage firm advisors rate Zoom Video Communications Inc (ZM) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 24 of the 34 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the ZM, a number of firms have released research notes about the stock. Citigroup stated their Neutral rating for the stock in a research note on November 17, 2023, with the firm’s price target at $66.
