Zoom Video Communications (NASDAQ:ZM) Shares Gap Down – What’s Next?

Shares of Zoom Video Communications, Inc. (NASDAQ:ZM) 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 traded.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on ZM shares. Benchmark upped their price target on shares of Zoom Video Communications from $83.00 to $85.00 and gave the stock a “buy” rating in a research report on Thursday, October 10th. Piper Sandler increased their price objective on shares of Zoom Video Communications from $68.00 to $89.00 and gave the company a “neutral” rating in a report on Tuesday. Scotiabank upgraded shares of Zoom Video Communications to a “hold” rating in a report on Tuesday, November 19th. UBS Group increased their price objective on shares of Zoom Video Communications from $75.00 to $90.00 and gave the company a “neutral” rating in a report on Tuesday. Finally, Evercore ISI upgraded shares of Zoom Video Communications from an “in-line” rating to an “outperform” rating and increased their price objective for the company from $70.00 to $115.00 in a report on Tuesday. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $82.55.

Zoom Video Communications Price Performance

The company has a market capitalization of $25.24 billion, a price-to-earnings ratio of 29.41, a price-to-earnings-growth ratio of 7.33 and a beta of -0.05. The business’s 50 day simple moving average is $73.85 and its 200 day simple moving average is $65.74.

Insider Activity

In related news, CAO Shane Crehan sold 1,550 shares of the company’s stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $66.87, for a total transaction of $103,648.50. Following the transaction, the chief accounting officer now owns 1,463 shares of the company’s stock, valued at approximately $97,830.81. This represents a 51.44 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, COO Aparna Bawa sold 880 shares of the stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $68.09, for a total transaction of $59,919.20. Following 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 position. The disclosure for this sale can be found here. Insiders have sold a total of 367,108 shares of company stock valued at $26,796,191 over the last quarter. 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 the stock. Innealta Capital LLC bought a new position in shares of Zoom Video Communications in the 2nd quarter worth about $33,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of Zoom Video Communications in the 2nd quarter worth about $36,000. Truvestments Capital LLC bought a new position in shares of Zoom Video Communications in the 3rd quarter worth about $37,000. Migdal Insurance & Financial Holdings Ltd. bought a new position in shares of Zoom Video Communications in the 2nd quarter worth about $41,000. Finally, Allworth Financial LP lifted its position in shares of Zoom Video Communications by 43.8% in the 3rd quarter. Allworth Financial LP now owns 591 shares of the company’s stock worth $41,000 after buying an additional 180 shares during the last quarter. 66.54% of the stock is owned by institutional investors and hedge funds.

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.