Zoom Video Communications (NASDAQ:ZM) Upgraded by Wall Street Zen to Strong-Buy Rating

Wall Street Zen upgraded shares of Zoom Video Communications (NASDAQ:ZM) from a buy rating to a strong-buy rating in a report issued on Sunday.

Other analysts have also issued research reports about the company. Scotiabank upped their target price on Zoom Video Communications from $75.00 to $85.00 and gave the stock a “sector perform” rating in a report on Friday, May 16th. Bank of America upped their target price on Zoom Video Communications from $79.00 to $84.00 and gave the stock a “neutral” rating in a report on Thursday, May 22nd. Morgan Stanley upped their target price on Zoom Video Communications from $79.00 to $85.00 and gave the stock an “equal weight” rating in a report on Thursday, May 22nd. Wells Fargo & Company upped their target price on Zoom Video Communications from $75.00 to $80.00 and gave the stock an “equal weight” rating in a report on Thursday, May 22nd. Finally, Benchmark restated a “buy” rating and set a $97.00 target price on shares of Zoom Video Communications in a report on Tuesday, May 20th. One investment analyst has rated the stock with a sell rating, fifteen have issued a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Zoom Video Communications presently has a consensus rating of “Hold” and a consensus price target of $87.00.

Zoom Video Communications Price Performance

Shares of NASDAQ:ZM opened at $76.63 on Friday. Zoom Video Communications has a 1 year low of $55.06 and a 1 year high of $92.80. The business has a 50 day simple moving average of $77.64 and a two-hundred day simple moving average of $79.38. The firm has a market capitalization of $23.18 billion, a PE ratio of 25.54, a price-to-earnings-growth ratio of 5.48 and a beta of 0.71.

Zoom Video Communications (NASDAQ:ZM) last announced its quarterly earnings results on Wednesday, May 21st. The company reported $1.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.30 by $0.13. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. Zoom Video Communications had a return on equity of 10.98% and a net margin of 20.34%. Zoom Video Communications’s quarterly revenue was up 2.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.35 earnings per share. Equities research analysts expect that Zoom Video Communications will post 2.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, COO Aparna Bawa sold 16,099 shares of the stock in a transaction dated Tuesday, April 15th. The shares were sold at an average price of $72.59, for a total transaction of $1,168,626.41. Following the sale, the chief operating officer now directly owns 1,978 shares of the company’s stock, valued at $143,583.02. This represents a 89.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eric S. Yuan sold 41,121 shares of the stock in a transaction dated Monday, April 14th. The stock was sold at an average price of $72.18, for a total transaction of $2,968,113.78. The disclosure for this sale can be found here. In the last three months, insiders have sold 96,671 shares of company stock valued at $7,078,546. Company insiders own 11.51% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Zoom Video Communications by 2.6% in the 1st quarter. Vanguard Group Inc. now owns 24,796,654 shares of the company’s stock valued at $1,829,249,000 after buying an additional 624,863 shares in the last quarter. FMR LLC lifted its stake in Zoom Video Communications by 2.3% in the 4th quarter. FMR LLC now owns 12,727,532 shares of the company’s stock valued at $1,038,694,000 after buying an additional 282,645 shares in the last quarter. Norges Bank purchased a new position in Zoom Video Communications in the 4th quarter valued at about $751,908,000. AQR Capital Management LLC lifted its stake in Zoom Video Communications by 5.2% in the 4th quarter. AQR Capital Management LLC now owns 7,538,744 shares of the company’s stock valued at $615,237,000 after buying an additional 373,509 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its stake in Zoom Video Communications by 0.6% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 6,421,733 shares of the company’s stock valued at $473,732,000 after buying an additional 36,210 shares in the last quarter. 66.54% of the stock is owned by hedge funds and other institutional investors.

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.