Needham & Company LLC Reiterates Hold Rating for Zoom Video Communications (NASDAQ:ZM)

Zoom Video Communications (NASDAQ:ZM)‘s stock had its “hold” rating reiterated by investment analysts at Needham & Company LLC in a note issued to investors on Friday, Benzinga reports.

Several other brokerages also recently commented on ZM. Benchmark increased their price objective on Zoom Video Communications from $83.00 to $85.00 and gave the stock a “buy” rating in a research note on Thursday. Morgan Stanley lowered their price objective on Zoom Video Communications from $72.00 to $68.00 and set an “equal weight” rating for the company in a research note on Friday, June 14th. Piper Sandler lowered their price objective on Zoom Video Communications from $72.00 to $68.00 and set a “neutral” rating for the company in a research note on Wednesday, July 10th. Bank of America lowered their price objective on Zoom Video Communications from $78.00 to $75.00 and set a “neutral” rating for the company in a research note on Thursday, August 22nd. Finally, Royal Bank of Canada reaffirmed an “outperform” rating and set a $95.00 price target on shares of Zoom Video Communications in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat, Zoom Video Communications has a consensus rating of “Hold” and an average target price of $75.05.

Zoom Video Communications Price Performance

Shares of Zoom Video Communications stock opened at $70.68 on Friday. Zoom Video Communications has a one year low of $55.06 and a one year high of $74.77. The stock’s 50-day moving average is $65.62 and its 200 day moving average is $62.48. The firm has a market cap of $21.75 billion, a price-to-earnings ratio of 25.33, a PEG ratio of 6.11 and a beta of -0.04.

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

Insider Activity at Zoom Video Communications

In related news, CEO Eric S. Yuan sold 37,206 shares of Zoom Video Communications stock in a transaction on Wednesday, October 9th. The stock was sold at an average price of $68.20, for a total transaction of $2,537,449.20. Following the completion of the sale, the chief executive officer now owns 114,341 shares of the company’s stock, valued at approximately $7,798,056.20. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Zoom Video Communications news, COO Aparna Bawa sold 10,332 shares of the firm’s stock in a transaction dated Thursday, July 18th. The stock was sold at an average price of $56.81, for a total transaction of $586,960.92. Following the sale, the chief operating officer now owns 1,978 shares in the company, valued at $112,370.18. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Eric S. Yuan sold 37,206 shares of the firm’s stock in a transaction dated Wednesday, October 9th. The shares were sold at an average price of $68.20, for a total value of $2,537,449.20. Following the sale, the chief executive officer now owns 114,341 shares in the company, valued at $7,798,056.20. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 145,074 shares of company stock valued at $9,595,146. Company insiders own 10.78% of the company’s stock.

Institutional Investors Weigh In On Zoom Video Communications

Large investors have recently added to or reduced their stakes in the company. Innealta Capital LLC purchased a new position in shares of Zoom Video Communications in the second quarter worth about $33,000. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Zoom Video Communications in the second quarter worth about $36,000. Migdal Insurance & Financial Holdings Ltd. purchased a new position in shares of Zoom Video Communications in the second quarter worth about $41,000. Versant Capital Management Inc increased its holdings in shares of Zoom Video Communications by 1,257.7% in the second quarter. Versant Capital Management Inc now owns 964 shares of the company’s stock worth $57,000 after buying an additional 893 shares during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of Zoom Video Communications by 69.7% in the second quarter. EverSource Wealth Advisors LLC now owns 1,685 shares of the company’s stock worth $102,000 after buying an additional 692 shares during the period. Hedge funds and other 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.