Royal Bank of Canada Reiterates Outperform Rating for Zoom Video Communications (NASDAQ:ZM)

Zoom Video Communications (NASDAQ:ZM)‘s stock had its “outperform” rating reissued by equities research analysts at Royal Bank of Canada in a note issued to investors on Thursday, Benzinga reports. They presently have a $95.00 price target on the stock. Royal Bank of Canada’s price target suggests a potential upside of 34.41% from the company’s previous close.

A number of other analysts have also recently commented on the company. Morgan Stanley dropped their price target on Zoom Video Communications from $72.00 to $68.00 and set an “equal weight” rating on the stock in a research report on Friday, June 14th. Wells Fargo & Company increased their target price on Zoom Video Communications from $55.00 to $60.00 and gave the stock an “underweight” rating in a research note on Thursday, August 22nd. Deutsche Bank Aktiengesellschaft lifted their price target on Zoom Video Communications from $71.00 to $75.00 and gave the stock a “hold” rating in a research report on Friday, August 23rd. Stifel Nicolaus increased their price objective on shares of Zoom Video Communications from $65.00 to $70.00 and gave the company a “hold” rating in a research report on Thursday. Finally, Bank of America dropped their target price on shares of Zoom Video Communications from $78.00 to $75.00 and set a “neutral” rating on the stock in a research note on Thursday, August 22nd. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and five have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $75.05.

Zoom Video Communications Price Performance

NASDAQ ZM opened at $70.68 on Thursday. The business’s 50-day moving average is $65.37 and its 200 day moving average is $62.48. The stock has a market capitalization of $21.75 billion, a PE ratio of 25.33, a PEG ratio of 6.03 and a beta of -0.04. Zoom Video Communications has a 1 year low of $55.06 and a 1 year high of $74.77.

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

Insider Buying and Selling

In other news, Director Janet Napolitano sold 4,477 shares of Zoom Video Communications stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $69.39, for a total value of $310,659.03. Following the sale, the director now directly owns 2,984 shares of the company’s stock, valued at approximately $207,059.76. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other Zoom Video Communications news, COO Aparna Bawa sold 10,332 shares of the company’s stock in a transaction that occurred on 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 directly owns 1,978 shares in the company, valued at $112,370.18. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Janet Napolitano sold 4,477 shares of the firm’s stock in a transaction that occurred on Wednesday, October 9th. The shares were sold at an average price of $69.39, for a total value of $310,659.03. Following the completion of the sale, the director now directly owns 2,984 shares of the company’s stock, valued at $207,059.76. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 145,074 shares of company stock worth $9,595,146. 10.78% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Axiom Advisory LLC grew its stake in Zoom Video Communications by 1.6% in the 3rd quarter. Axiom Advisory LLC now owns 11,712 shares of the company’s stock worth $817,000 after acquiring an additional 183 shares in the last quarter. Baader Bank Aktiengesellschaft increased its holdings in Zoom Video Communications by 0.8% during the 2nd quarter. Baader Bank Aktiengesellschaft now owns 23,189 shares of the company’s stock worth $1,370,000 after purchasing an additional 189 shares during the period. The Manufacturers Life Insurance Company increased its holdings in Zoom Video Communications by 1.7% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 13,411 shares of the company’s stock worth $794,000 after purchasing an additional 223 shares during the period. Excalibur Management Corp increased its holdings in Zoom Video Communications by 5.6% during the 2nd quarter. Excalibur Management Corp now owns 4,344 shares of the company’s stock worth $257,000 after purchasing an additional 232 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its position in Zoom Video Communications by 2.5% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 11,311 shares of the company’s stock valued at $669,000 after purchasing an additional 273 shares in the last quarter. 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.