Zoom Video Communications (NASDAQ:ZM) Hits New 12-Month High – Still a Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares hit a new 52-week high on Monday . The company traded as high as $88.30 and last traded at $88.30, with a volume of 140992 shares trading hands. The stock had previously closed at $85.88.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ZM. Morgan Stanley raised their price objective on Zoom Video Communications from $68.00 to $86.00 and gave the stock an “equal weight” rating in a report on Wednesday, November 13th. Deutsche Bank Aktiengesellschaft lifted their price target on Zoom Video Communications from $71.00 to $75.00 and gave the stock a “hold” rating in a research report on Friday, August 23rd. Wedbush started coverage on Zoom Video Communications in a report on Thursday, October 17th. They issued an “outperform” rating and a $85.00 price objective for the company. The Goldman Sachs Group lifted their target price on shares of Zoom Video Communications from $72.00 to $86.00 and gave the company a “neutral” rating in a report on Tuesday. Finally, Evercore ISI upgraded shares of Zoom Video Communications from an “in-line” rating to an “outperform” rating and increased their price target for the stock from $70.00 to $115.00 in a research note on Tuesday. Two investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $85.20.

Zoom Video Communications Price Performance

The company’s 50 day moving average is $74.16 and its 200 day moving average is $65.89. The stock has a market cap of $25.67 billion, a price-to-earnings ratio of 29.90, a PEG ratio of 7.33 and a beta of -0.05.

Insider Buying and Selling

In related news, CEO Eric S. Yuan sold 178,571 shares of Zoom Video Communications stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $76.91, for a total transaction of $13,733,895.61. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Velchamy Sankarlingam sold 3,614 shares of the company’s stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $66.87, for a total value of $241,668.18. Following the completion of the sale, the insider now directly owns 94,000 shares in the company, valued at approximately $6,285,780. The trade was a 3.70 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 367,108 shares of company stock worth $26,796,191 in the last quarter. Company insiders own 10.78% of the company’s stock.

Hedge Funds Weigh In On Zoom Video Communications

A number of institutional investors have recently made changes to their positions in ZM. Innealta Capital LLC purchased a new position in Zoom Video Communications in the 2nd quarter valued at about $33,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Zoom Video Communications in the second quarter valued at approximately $36,000. Truvestments Capital LLC purchased a new position in shares of Zoom Video Communications during the third quarter valued at approximately $37,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in Zoom Video Communications during the second quarter worth approximately $41,000. Finally, Allworth Financial LP grew its stake in Zoom Video Communications by 43.8% in the 3rd quarter. Allworth Financial LP now owns 591 shares of the company’s stock worth $41,000 after acquiring an additional 180 shares during the period. 66.54% of the stock is owned by institutional investors and hedge funds.

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.