Zoom Video Communications Inc. (NASDAQ:ZM) Relative Strength Index (RSI) is 42.47, with weekly volatility at 5.44% and ATR at 33.02. The ZM stock’s 52-week price range has touched low of $62.02 and a $588.84 high. Intraday shares traded counted 20.75 million, which was -70.92% lower than its 30-day average trading volume of 12.14M. Its shares traded lower over the last trading session, losing -15.06% on 12/01/20. The shares fell to a low of $401.72 before closing at $406.31. ZM’s previous close was $478.36 while the outstanding shares total 282.85M. The firm has a 12-month trailing P/E ratio of 518.91, and a growth ratio of 13.49.
Investors have identified the Telecom Services company Zoom Video Communications Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $108.73 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Zoom Video Communications Inc. (ZM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 2232102000 million total, with 1287326000 million as their total liabilities.
ZM were able to record 625.06 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 697.39 million. In cash movements, the company had a total of 660.31 million as operating cash flow.
Potential earnings growth for Zoom Video Communications Inc. (ZM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Zoom Video Communications Inc. recorded a total of 663.52 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 78.02% coming in sequential stages and their sales for the third quarter increasing by 50.54%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 192.27 million trying to sell their products during the last quarter, with the result yielding a gross income of 471.25 million. This allows shareholders to hold on to 282.85M with the revenue now reading 0.66 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.34 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.09 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ZM sounds very interesting.
Is the stock of ZM attractive?
In related news, Chief Operating Officer, Bawa Aparna sold 7,500 shares of the company’s stock in a transaction that recorded on Nov 04. The sale was performed at an average price of 472.00, for a total value of 3,540,000. As the sale deal closes, the Director, Swanson Bart now sold 2,000 shares of the company’s stock, valued at 925,060. Also, Chief Executive Officer, Yuan Eric S. sold 69,742 shares of the company’s stock in a deal that was recorded on Oct 29. The shares were price at an average price of 490.38 per share, with a total market value of 34,199,847. Following this completion of acquisition, the Chief Executive Officer, Yuan Eric S. now holds 70,142 shares of the company’s stock, valued at 36,415,758. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.