Wedbush Initiates Coverage on Zoom Video Communications (NASDAQ:ZM)

Equities researchers at Wedbush assumed coverage on shares of Zoom Video Communications (NASDAQ:ZM) in a research note issued on Thursday, Marketbeat.com reports. The firm set an “outperform” rating and a $85.00 price target on the stock. Wedbush’s price objective would indicate a potential upside of 20.53% from the company’s current price.

A number of other brokerages also recently weighed in on ZM. Robert W. Baird reduced their price target on shares of Zoom Video Communications from $84.00 to $77.00 and set an “outperform” rating for the company in a report on Thursday, August 22nd. Royal Bank of Canada reissued an “outperform” rating and issued a $95.00 price target on shares of Zoom Video Communications in a report on Thursday, October 10th. UBS Group raised shares of Zoom Video Communications to a “hold” rating in a report on Friday, July 26th. Wells Fargo & Company increased their price target on shares of Zoom Video Communications from $55.00 to $60.00 and gave the company an “underweight” rating in a report on Thursday, August 22nd. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of Zoom Video Communications from $71.00 to $75.00 and gave the company a “hold” rating in a report on Friday, August 23rd. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $75.32.

Zoom Video Communications Stock Up 0.5 %

Shares of ZM opened at $70.52 on Thursday. The company’s fifty day moving average is $66.94 and its 200-day moving average is $62.63. Zoom Video Communications has a 12 month low of $55.06 and a 12 month high of $74.77. The firm has a market cap of $21.81 billion, a price-to-earnings ratio of 26.31, a price-to-earnings-growth ratio of 5.85 and a beta of -0.04.

Zoom Video Communications (NASDAQ:ZM) last posted its quarterly earnings data on Wednesday, August 21st. The company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.18. The business had revenue of $1.16 billion during the quarter, compared to the consensus estimate of $1.15 billion. Zoom Video Communications had a net margin of 19.08% and a return on equity of 10.77%. Zoom Video Communications’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.55 EPS. As a group, research analysts predict that Zoom Video Communications will post 2.74 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Eric S. Yuan sold 2,420 shares of the firm’s stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $56.12, for a total value of $135,810.40. Following the transaction, the chief executive officer now owns 90,354 shares of the company’s stock, valued at approximately $5,070,666.48. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In related news, CEO Eric S. Yuan sold 2,420 shares of Zoom Video Communications stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $56.12, for a total transaction of $135,810.40. Following the transaction, the chief executive officer now owns 90,354 shares of the company’s stock, valued at $5,070,666.48. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Aparna Bawa sold 880 shares of Zoom Video Communications stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $68.09, for a total transaction of $59,919.20. Following the transaction, the chief operating officer now directly owns 2,809 shares in the company, valued at $191,264.81. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 157,762 shares of company stock valued at $10,584,251. 10.78% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Raymond James & Associates lifted its stake in Zoom Video Communications by 0.7% in the third quarter. Raymond James & Associates now owns 53,089 shares of the company’s stock valued at $3,702,000 after buying an additional 383 shares in the last quarter. Blue Trust Inc. lifted its stake in Zoom Video Communications by 117.7% in the third quarter. Blue Trust Inc. now owns 5,105 shares of the company’s stock valued at $356,000 after buying an additional 2,760 shares in the last quarter. Accurate Wealth Management LLC lifted its stake in Zoom Video Communications by 31.5% in the third quarter. Accurate Wealth Management LLC now owns 21,256 shares of the company’s stock valued at $1,454,000 after buying an additional 5,091 shares in the last quarter. Aaron Wealth Advisors LLC bought a new position in Zoom Video Communications in the third quarter valued at approximately $275,000. Finally, Claro Advisors LLC bought a new position in Zoom Video Communications in the third quarter valued at approximately $276,000. Institutional investors own 66.54% of the company’s stock.

About Zoom Video Communications

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.