Zoom Video Communications (NASDAQ:ZM) Shares Gap Down – Here’s Why

Zoom Video Communications, Inc. (NASDAQ:ZM)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $89.03, but opened at $84.02. Zoom Video Communications shares last traded at $83.03, with a volume of 3,378,293 shares.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on ZM shares. Evercore ISI raised Zoom Video Communications from an “in-line” rating to an “outperform” rating and upped their target price for the company from $70.00 to $115.00 in a research report on Tuesday. Morgan Stanley raised their price objective on Zoom Video Communications from $68.00 to $86.00 and gave the stock an “equal weight” rating in a research note on Wednesday, November 13th. Piper Sandler upped their target price on Zoom Video Communications from $68.00 to $89.00 and gave the company a “neutral” rating in a research report on Tuesday. Royal Bank of Canada reissued an “outperform” rating and set a $95.00 price target on shares of Zoom Video Communications in a research report on Tuesday. Finally, Mizuho lifted their price objective on shares of Zoom Video Communications from $90.00 to $105.00 and gave the company an “outperform” rating in a research note on Tuesday. Two investment analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and seven have given a buy rating to the stock. According to MarketBeat, Zoom Video Communications presently has an average rating of “Hold” and a consensus target price of $85.19.

Zoom Video Communications Stock Performance

The stock has a market cap of $26.27 billion, a price-to-earnings ratio of 28.45, a PEG ratio of 7.12 and a beta of -0.05. The business’s 50 day moving average is $74.55 and its 200-day moving average is $66.03.

Insider Activity

In other news, CEO Eric S. Yuan sold 2,420 shares of the stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $68.38, for a total value of $165,479.60. Following the completion of the sale, the chief executive officer now directly owns 85,514 shares in the company, valued at $5,847,447.32. This represents a 2.75 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Aparna Bawa sold 880 shares of the firm’s stock in a transaction dated Thursday, September 5th. The stock was sold at an average price of $68.09, for a total transaction of $59,919.20. Following the completion of the transaction, the chief operating officer now directly owns 2,809 shares in the company, valued at approximately $191,264.81. This represents a 23.85 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 367,108 shares of company stock worth $26,796,191 over the last 90 days. 10.78% of the stock is currently owned by company insiders.

Institutional Trading of Zoom Video Communications

A number of hedge funds have recently bought and sold shares of the business. FMR LLC increased its stake in shares of 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 acquiring an additional 2,395,396 shares during the last quarter. State Street Corp grew its holdings in shares of Zoom Video Communications by 2.3% in the third quarter. State Street Corp now owns 6,106,293 shares of the company’s stock valued at $425,853,000 after purchasing an additional 134,559 shares during the period. AQR Capital Management LLC increased its position in Zoom Video Communications by 78.5% during the second quarter. AQR Capital Management LLC now owns 5,731,354 shares of the company’s stock worth $337,233,000 after purchasing an additional 2,520,987 shares during the last quarter. Pacer Advisors Inc. raised its stake in Zoom Video Communications by 4.4% during the third quarter. Pacer Advisors Inc. now owns 5,480,179 shares of the company’s stock worth $382,188,000 after purchasing an additional 233,241 shares during the period. Finally, Acadian Asset Management LLC raised its stake in Zoom Video Communications by 60.9% during the second quarter. Acadian Asset Management LLC now owns 4,902,397 shares of the company’s stock worth $290,153,000 after purchasing an additional 1,855,679 shares during the period. Institutional investors and hedge funds own 66.54% of the company’s stock.

Zoom Video Communications Company Profile

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.