Zoom Video Communications (NASDAQ:ZM) Posts Quarterly Earnings Results

Zoom Video Communications (NASDAQ:ZM) announced its quarterly earnings data on Monday. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.08 by $0.21, MarketWatch Earnings reports. Zoom Video Communications had a return on equity of 3.51% and a net margin of 3.17%. The company had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the prior year, the business posted $0.21 EPS. The business’s revenue was up 3.2% compared to the same quarter last year. Zoom Video Communications updated its Q4 guidance to $1.13-1.15 EPS.

Zoom Video Communications Stock Up 2.9 %

Shares of ZM traded up $1.88 during mid-day trading on Monday, hitting $66.00. 9,367,157 shares of the company’s stock were exchanged, compared to its average volume of 3,726,619. Zoom Video Communications has a 52 week low of $58.87 and a 52 week high of $85.13. The stock’s 50-day simple moving average is $64.94 and its 200-day simple moving average is $67.12. The firm has a market cap of $19.86 billion, a price-to-earnings ratio of 150.00, a price-to-earnings-growth ratio of 1.07 and a beta of -0.16.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Sanford C. Bernstein dropped their price target on shares of Zoom Video Communications from $92.00 to $82.00 and set a “market perform” rating on the stock in a research report on Tuesday, August 22nd. Citigroup upgraded shares of Zoom Video Communications from a “sell” rating to a “neutral” rating and set a $66.00 target price for the company in a research note on Friday. Wells Fargo & Company lowered their price target on Zoom Video Communications from $80.00 to $75.00 and set an “equal weight” rating on the stock in a research report on Tuesday, August 22nd. Needham & Company LLC reaffirmed a “hold” rating on shares of Zoom Video Communications in a research report on Tuesday, August 22nd. Finally, Royal Bank of Canada reissued an “outperform” rating and set a $95.00 target price on shares of Zoom Video Communications in a report on Thursday, October 12th. Seventeen investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $81.55.

Insider Activity at Zoom Video Communications

In other news, COO Aparna Bawa sold 13,268 shares of the company’s stock in a transaction on Tuesday, September 19th. The stock was sold at an average price of $69.36, for a total transaction of $920,268.48. Following the completion of the sale, the chief operating officer now directly owns 1,978 shares in the company, valued at approximately $137,194.08. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other Zoom Video Communications news, COO Aparna Bawa sold 13,268 shares of the firm’s stock in a transaction dated Tuesday, September 19th. The shares were sold at an average price of $69.36, for a total value of $920,268.48. Following the transaction, the chief operating officer now directly owns 1,978 shares of the company’s stock, valued at approximately $137,194.08. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eric S. Yuan sold 13,253 shares of the business’s stock in a transaction that occurred on Monday, September 18th. The shares were sold at an average price of $70.44, for a total transaction of $933,541.32. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 157,375 shares of company stock worth $10,417,755. Company insiders own 11.28% of the company’s stock.

Institutional Investors Weigh In On Zoom Video Communications

A number of large investors have recently modified their holdings of ZM. Global Wealth Management Investment Advisory Inc. lifted its position in shares of Zoom Video Communications by 63.3% during the 1st quarter. Global Wealth Management Investment Advisory Inc. now owns 294 shares of the company’s stock worth $34,000 after buying an additional 114 shares during the last quarter. Neo Ivy Capital Management raised its stake in Zoom Video Communications by 56.8% during the second quarter. Neo Ivy Capital Management now owns 367 shares of the company’s stock worth $39,000 after acquiring an additional 133 shares in the last quarter. Covestor Ltd lifted its holdings in shares of Zoom Video Communications by 76.7% in the first quarter. Covestor Ltd now owns 394 shares of the company’s stock worth $46,000 after acquiring an additional 171 shares during the last quarter. MML Investors Services LLC boosted its stake in shares of Zoom Video Communications by 1.8% in the 1st quarter. MML Investors Services LLC now owns 9,550 shares of the company’s stock valued at $705,000 after purchasing an additional 173 shares in the last quarter. Finally, Harbour Investments Inc. grew its holdings in shares of Zoom Video Communications by 7.4% during the 3rd quarter. Harbour Investments Inc. now owns 2,535 shares of the company’s stock valued at $177,000 after purchasing an additional 175 shares during the last quarter. Institutional investors and hedge funds own 54.85% of the company’s stock.

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.