With the current price of $294.68, the stock of Zoom Video Communications, Inc. (NASDAQ:ZM) concluded the trading session seeing its price drop by -0.59 points or at a loss of -0.2% compared to its previous day’s closing price of $295.27. About 5.561 million shares of the stock changed hands on the day. The trading volume of ZM’s shares during the past session compares with the stock’s average daily trading volume of 8.924 million shares. On the other hand, a float of 161 million shares and a weekly performance of 1.37% make the stock worth to keep an eye on. Analysts are in agreement on an annual target price of $231.73 for ZM’s share which suggests that the stock, price of which is currently buoying between $290.33 and $301.52, is prone to a loss of -21.36%. But still, there are some analysts recommending a price below the agreed average price and one of them has given a target price of $156.25 to the stock.
The latest data released on August 14, 2020 shows that the short float in the Zoom Video Communications, Inc.’s stock is trending downward as short interest in ZM shares turned down leaving more number of shares available to public for trading. Number of shares shorted in the ZM is currently comprised of 6.27% of the float as the volume of shorted shares declined by -880881 shares. Over the past two weeks, stock’s short interests improved as number of shorted shares reduced to 9.224 million shares from the previous figure of 10.104 million shares. Stock’s average intraday volume is now standing at 4.702 million shares which indicate that the days to cover the shorts are nearly 1.961713.
After concluding the day’s trading, price of Zoom Video Communications, Inc. (NASDAQ:ZM) is up $3.99 over the week and it is $44.68 above 20-day average price. The highest price touched by the stock on the day was lower than 52-week high price of $302 that was attained on 08/26/20.
The stock has traded as low as $60.97 in past 52-week, and its current price is 383.34% above from that 52-week low price mark recorded on 10/23/19, which is an indicator that could increase the investors’ motivation level in taking advantage of price surge the stock has currently been going through. Stock currently has its beta at 0. A beta value of more than 1 represents higher volatility of a stock than that of the market and for the reason investors closely watch the behavior of such stock.
Current indicators are pointing at 64.24 as 14-days RSI of Zoom Video Communications, Inc. This means that the ZM is currently in a neutral territory and its share’s price movement is likely to be steady for a while. Similarly, the stochastic oscillator is indicating a momentum of 90.7%, implying stock’s share price is buoying in an oversold state.
Technical chart is showing 1st resistance point of $300.69 for the ZM’s share while placing it at a 2nd resistance point of $306.7 to be settled at. But if the stock takes a plunge lower than the 1st support price of $289.5 then its market would become weakened. And that would likely sliding the stock price down to 2nd support price level of $284.32.
MACD oscillator is showing a reading of 9.07 for the stock which means that it is currently in the green zone. Any movement above or below the zero level of the indicator has always being noticed by the investors as it makes them compare the stock’s average measure in short-term with that in the long-term. An MACD evaluation of more than zero means that stock has a stronger short-term average than long-term average, which implies that stock’s price is likely to climb up. But an MACD below zero indicates weaker short-term average compare to the long-term average.
RBC Capital Mkts maintained its Outperform recommendation for ZM stock in a review note dated August 18, but moved the price target up from $250 to $300. The stock gets a Peer Perform recommendation from analysts at Wolfe Research who started covering the stock in their July 24 note to investors.Goldman analysts reiterated their recommendation of Sell rating for the stock on June 24 while suggesting a price target of $187 which previously was $156.
The average rating of 2.52 for ZM is placing the stock in bullish category at the moment. In a poll by Reuters including 28 analysts in it who kept tracking the Zoom Video Communications, Inc., 14 rated the stock as hold. Others were in different opinions for the ZM. Out of remaining 14 analysts, 10 rated the stock as a buy or strong buy. 4 were in favor of a sell rating for the stock while advising investors to shun the stock if they already have any or otherwise not to buy it.
A quick look at other side of the picture shows that ZM stock is ahead of earnings per share estimates with a forward price-to-earnings ratio of 187.46. Stock’s current price-to-sales (P/S) ratio of 1653.7 is in front of industry’s average P/S ratio of 23.1. A comparison of Zoom Video Communications, Inc.’s trailing 12-months P/E ratio of 92.4 implies that it is trading above the industry’s average P/E ratio, which currently is 1.6.
Projection by Zacks Consensus Estimates suggests that Zoom Video Communications, Inc. (NASDAQ:ZM) will see its current-quarter revenues drop by nearly -99.85% to be decreased to about $500 million. Full-year revenue of the company is however forecasted to be increased by nearly 190.69% to bring $1810 million in revenues against last year revenue of $623 million. Earnings, after adjustments, are likely to surge by 462.5% to post an EPS of $0.45, while estimate for company’s full year earnings is $1.3 per share with a growth rate of 271.43%.