Zoom Video Communications (NASDAQ:ZM) Shares Gap Down on Analyst Downgrade

Zoom Video Communications, Inc. (NASDAQ:ZMGet Rating)’s stock price gapped down prior to trading on Tuesday after Benchmark lowered their price target on the stock from $118.00 to $102.00. The stock had previously closed at $80.26, but opened at $72.59. Zoom Video Communications shares last traded at $73.26, with a volume of 214,512 shares trading hands.

Several other brokerages also recently weighed in on ZM. Argus downgraded shares of Zoom Video Communications from a “buy” rating to a “hold” rating in a research note on Friday, August 26th. UBS Group lowered their price target on shares of Zoom Video Communications to $92.00 in a report on Tuesday, August 23rd. BTIG Research cut shares of Zoom Video Communications from a “buy” rating to a “neutral” rating in a report on Tuesday, August 23rd. Royal Bank of Canada lowered their target price on shares of Zoom Video Communications from $150.00 to $130.00 in a report on Tuesday, August 23rd. Finally, JPMorgan Chase & Co. downgraded shares of Zoom Video Communications from an “overweight” rating to a “neutral” rating and cut their price objective for the stock from $295.00 to $85.00 in a research report on Friday, October 7th. Two research analysts have rated the stock with a sell rating, seventeen have given a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $122.48.

Insider Buying and Selling

In other Zoom Video Communications news, insider Velchamy Sankarlingam sold 2,374 shares of the company’s stock in a transaction dated Saturday, October 8th. The shares were sold at an average price of $71.59, for a total value of $169,954.66. Following the completion of the transaction, the insider now owns 15,869 shares in the company, valued at approximately $1,136,061.71. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 11.24% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Public Investment Fund acquired a new stake in Zoom Video Communications during the second quarter valued at approximately $507,208,000. Vanguard Group Inc. lifted its stake in Zoom Video Communications by 23.3% during the third quarter. Vanguard Group Inc. now owns 17,125,004 shares of the company’s stock valued at $1,260,230,000 after purchasing an additional 3,241,291 shares during the last quarter. Renaissance Technologies LLC lifted its stake in Zoom Video Communications by 61.0% during the first quarter. Renaissance Technologies LLC now owns 6,449,306 shares of the company’s stock valued at $756,052,000 after purchasing an additional 2,444,294 shares during the last quarter. Fisher Asset Management LLC lifted its stake in Zoom Video Communications by 93.6% during the first quarter. Fisher Asset Management LLC now owns 4,400,598 shares of the company’s stock valued at $515,882,000 after purchasing an additional 2,127,054 shares during the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. lifted its stake in Zoom Video Communications by 20.3% during the third quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 6,341,298 shares of the company’s stock valued at $466,656,000 after purchasing an additional 1,071,273 shares during the last quarter. 52.86% of the stock is currently owned by institutional investors.

Zoom Video Communications Stock Down 3.9 %

The firm has a market capitalization of $22.96 billion, a price-to-earnings ratio of 23.89, a price-to-earnings-growth ratio of 3.19 and a beta of -0.29. The firm’s 50 day moving average is $78.58 and its 200 day moving average is $93.66.

Zoom Video Communications (NASDAQ:ZMGet Rating) last issued its quarterly earnings results on Monday, November 21st. The company reported $1.07 EPS for the quarter, beating the consensus estimate of $0.84 by $0.23. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.10 billion. Zoom Video Communications had a net margin of 23.05% and a return on equity of 11.87%. The firm’s quarterly revenue was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.72 EPS. On average, sell-side analysts predict that Zoom Video Communications, Inc. will post 1.32 earnings per share for the current year.

About Zoom Video Communications

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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.

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