The stock of Zoom Video Communications, Inc. (NASDAQ:ZM) is now priced at $325.1 and the shares are 25.83 points up or 8.63% higher compared to its previous closing price of $299.27. The stock had 23.468 million contracts set over the past session. ZM shares’ daily volume is compared to its average trading volume at 8.738 million shares. However, it has a float of 161 million and although its performance was 15.17% over the week, it’s one to watch. Analysts have given the ZM stock a yearly average price target of $234.11 per share. It means the stock’s downside potential is -27.99% with the ZM share price recently placing at $301.27 to $325.9. However, some brokerage firms have priced the stock below the average, including one that has called $156.25.
The shorts are running away from the Zoom Video Communications, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the ZM shares have declined. Short interest in the stock represents just 5.72% of its float, but the volume has dropped by -880881. The volume of shorted shares dropped to 9.224 million from 10.104 million shares over the last two weeks. The average intraday trading volume has been 4.702 million shares, which means that days to cover moved to roughly 1.961713.
In the last trading session, Zoom Video Communications, Inc. (NASDAQ:ZM) raised by $42.82 over the week and gained $57.1 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $325.9. The stock recorded its established 52-week high on 08/31/20.
Since 10/23/19, the stock has traded to a low of $60.97 at 433.23%, 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 73.15. This suggests that the stock is oversold at the moment and that ZM shares’ price movement remains not stable. The stochastic readings are equally revealing at 94.38% meaning the ZM share price is currently in oversold territory.
The technical chart shows that the ZM stock will likely settle at between $333.58 and $342.05 per share. However, if the stock dips below $308.95, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $292.79.
Currently, the stock is trading in the green of MACD, with a reading of 12.91. 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 RBC Capital Mkts though raised target price of ZM stock from $250 to $300 but maintained Outperform recommendation in their August 18 review. Wolfe Research analysts see the stock as a Peer Perform in a flash note released to investors on July 24 initiating covering the stock. Goldman analysts see the stock as Sell. Nonetheless, the analysts revised the share prices up on June 24, placing it at $187 from $156.
The average rating for the ZM equity is 2.52 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 206.81X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 1820.8 above the group’s average of 23.1. Zoom Video Communications, Inc. has its P/E ratio at 101.7, 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 $500 million. The company’s full-year revenues are, however, expected to increase by about 190.69%, up from $623 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.