Zoom Video Communications (NASDAQ:ZM) Sets New 12-Month High – Time to Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $88.30 and last traded at $88.30, with a volume of 140992 shares trading hands. The stock had previously closed at $85.88.

Wall Street Analyst Weigh In

Several research firms have commented on ZM. Robert W. Baird reduced their price objective on Zoom Video Communications from $84.00 to $77.00 and set an “outperform” rating on the stock in a report on Thursday, August 22nd. Benchmark increased their price target on shares of Zoom Video Communications from $83.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday, October 10th. Morgan Stanley boosted their price target on Zoom Video Communications from $68.00 to $86.00 and gave the stock an “equal weight” rating in a research report on Wednesday, November 13th. Royal Bank of Canada reiterated an “outperform” rating and set a $95.00 price objective on shares of Zoom Video Communications in a research report on Thursday, October 10th. Finally, Wells Fargo & Company raised their price objective on shares of Zoom Video Communications from $55.00 to $60.00 and gave the stock an “underweight” rating in a research report on Thursday, August 22nd. Two analysts have rated the stock with a sell rating, thirteen have issued a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $76.61.

Zoom Video Communications Price Performance

The stock has a market cap of $27.84 billion, a price-to-earnings ratio of 30.78, a PEG ratio of 7.33 and a beta of -0.05. The company’s 50 day moving average is $73.43 and its 200 day moving average is $65.54.

Insider Buying and Selling

In other news, CEO Eric S. Yuan sold 178,571 shares of the stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $76.91, for a total transaction of $13,733,895.61. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Aparna Bawa sold 880 shares of the company’s stock in a transaction on Thursday, September 5th. The stock was sold at an average price of $68.09, for a total value of $59,919.20. Following the sale, the chief operating officer now owns 2,809 shares of the company’s stock, valued at approximately $191,264.81. The trade was a 23.85 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 367,108 shares of company stock worth $26,796,191 in the last three months. Corporate insiders own 10.78% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ZM. Pacer Advisors Inc. grew its position in shares of Zoom Video Communications by 96.7% during the second quarter. Pacer Advisors Inc. now owns 5,246,938 shares of the company’s stock worth $310,566,000 after acquiring an additional 2,579,720 shares during the last quarter. AQR Capital Management LLC boosted its stake in Zoom Video Communications by 78.5% during the 2nd quarter. AQR Capital Management LLC now owns 5,731,354 shares of the company’s stock valued at $337,233,000 after purchasing an additional 2,520,987 shares during the period. FMR LLC grew its position in Zoom Video Communications by 23.8% in the 3rd quarter. FMR LLC now owns 12,444,887 shares of the company’s stock worth $867,906,000 after purchasing an additional 2,395,396 shares during the last quarter. Acadian Asset Management LLC increased its stake in shares of Zoom Video Communications by 60.9% in the second quarter. Acadian Asset Management LLC now owns 4,902,397 shares of the company’s stock valued at $290,153,000 after purchasing an additional 1,855,679 shares during the period. Finally, Eagle Asset Management Inc. acquired a new position in shares of Zoom Video Communications during the third quarter worth approximately $62,038,000. 66.54% of the stock is owned by institutional investors and hedge funds.

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.