The stock of Zoom Video Communications, Inc. (NASDAQ:ZM) is now priced at $250 and the shares are -8.73 points down or -3.37% lower compared to its previous closing price of $258.73. The stock had 5.714 million contracts set over the past session. ZM shares’ daily volume is compared to its average trading volume at 9.245 million shares. However, it has a float of 161 million and although its performance was -6.72% over the week, it’s one to watch. Analysts have given the ZM stock a yearly average price target of $226.96 per share. It means the stock’s downside potential is -9.22% with the ZM share price recently placing at $244.54 to $261.44.
The shorts are running away from the Zoom Video Communications, Inc. stock, with the latest data on short interest released on July 15, 2020, showing that short interest numbers in the ZM shares have declined. Short interest in the stock represents just 7.15% of its float, but the volume has dropped by -1660167. The volume of shorted shares dropped to 11.523 million from 13.183 million shares over the last two weeks. The average intraday trading volume has been 6.81 million shares, which means that days to cover moved to roughly 1.692135.
In the last trading session, Zoom Video Communications, Inc. (NASDAQ:ZM) dropped by -$18 over the week and lost -$10.3 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $281. The stock recorded its established 52-week high on 07/13/20.
Since 10/23/19, the stock has traded to a low of $60.97 at 310.05%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Zoom Video Communications, Inc.’s two-week RSI is 47.07. This suggests that the stock is neutral at the moment and that ZM shares’ price movement remains stable. The stochastic readings are equally revealing at 57.51% meaning the ZM share price is currently in neutral territory.
The technical chart shows that the ZM stock will likely settle at between $259.45 and $268.89 per share. However, if the stock dips below $242.55, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $235.09.
Currently, the stock is trading in the red of MACD, with a reading of -1.18. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned ZM a rating of Peer Perform in their intiating review released on July 24. Goldman analysts see the stock as a Sell, but they also raised the share’s target price from $156 to $187 in a flash note released to investors on June 24. Bernstein analysts see the stock as Outperform. Nonetheless, the analysts revised the share prices up on June 10, placing it at $228 from $157.
The average rating for the ZM equity is 2.5 and is currently gathering a bullish momentum. Of 28 analysts tracking Zoom Video Communications, Inc. polled by Reuters, 13 rated ZM as a hold. The remaining 15 analysts were split evenly. However, the split wasn’t equal as a majority (11) rated it as a buy or strong buy. 4 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ZM stock price is 160.98X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 1400.2 above the group’s average of 22.8. Zoom Video Communications, Inc. has its P/E ratio at 78.2, which means that the stock is currently trading at a premium relative to the 1.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Zoom Video Communications, Inc. (NASDAQ:ZM) will decrease by about -99.85%, which will see them reach $499.06 million. The company’s full-year revenues are, however, expected to increase by about 190.69%, up from $622.66 million to $1810 million. ZM’s expected adjusted earnings should surge almost 462.5% to end up at $0.45 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 271.43% to record $1.3/share.