Zoom Video Communications (NASDAQ:ZM) Trading 5.8% Higher – Time to Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares rose 5.8% on Tuesday . The stock traded as high as $87.78 and last traded at $86.77. Approximately 1,569,491 shares changed hands during trading, a decline of 29% from the average daily volume of 2,215,046 shares. The stock had previously closed at $82.00.

Analyst Ratings Changes

Several research analysts have issued reports on ZM shares. Needham & Company LLC restated a “hold” rating on shares of Zoom Video Communications in a research note on Friday, January 10th. Barclays raised their price objective on shares of Zoom Video Communications from $70.00 to $85.00 and gave the stock an “equal weight” rating in a report on Wednesday, November 27th. Wells Fargo & Company raised shares of Zoom Video Communications from an “underweight” rating to an “equal weight” rating and upped their target price for the company from $70.00 to $85.00 in a report on Tuesday, January 7th. Jefferies Financial Group upgraded shares of Zoom Video Communications from a “hold” rating to a “buy” rating and lifted their price target for the stock from $85.00 to $100.00 in a research note on Thursday, December 19th. Finally, Morgan Stanley upped their price objective on Zoom Video Communications from $86.00 to $96.00 and gave the stock an “equal weight” rating in a research note on Wednesday, December 18th. Sixteen research analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $89.10.

Zoom Video Communications Price Performance

The company’s fifty day simple moving average is $82.55 and its 200-day simple moving average is $72.76. The firm has a market capitalization of $27.17 billion, a PE ratio of 29.55, a price-to-earnings-growth ratio of 4.99 and a beta of -0.01.

Insider Buying and Selling at Zoom Video Communications

In related news, CEO Eric S. Yuan sold 178,571 shares of the stock in a transaction that occurred on Tuesday, November 5th. The shares were sold at an average price of $76.91, for a total value of $13,733,895.61. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Jonathan Chadwick sold 25,000 shares of the company’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $80.33, for a total transaction of $2,008,250.00. Following the completion of the sale, the director now directly owns 1,514 shares in the company, valued at $121,619.62. This trade represents a 94.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 477,481 shares of company stock worth $37,774,948. 10.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ZM. Global X Japan Co. Ltd. raised its position in Zoom Video Communications by 127.5% during the fourth quarter. Global X Japan Co. Ltd. now owns 339 shares of the company’s stock worth $28,000 after acquiring an additional 190 shares during the period. Avior Wealth Management LLC increased its stake in shares of Zoom Video Communications by 291.2% during the fourth quarter. Avior Wealth Management LLC now owns 356 shares of the company’s stock worth $29,000 after purchasing an additional 265 shares in the last quarter. Geneos Wealth Management Inc. acquired a new position in shares of Zoom Video Communications during the 4th quarter worth about $39,000. Truvestments Capital LLC purchased a new position in Zoom Video Communications in the 3rd quarter valued at about $37,000. Finally, Allworth Financial LP boosted its holdings 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 buying an additional 180 shares during the last quarter. Institutional investors and hedge funds 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.