The Vanguard Group, Inc. recently announced the acquisition of new stake in Zoom Video Communications Inc. (NASDAQ:ZM). The institutional investor has increased its shareholding in the Communication Services company by 24.19% to 16.62 million shares with purchase of 3.24 million shares. This fresh investment now brings its stake to 6.62% valued currently at $1.39 billion. In addition, ARK Investment Management LLC raised its holdings by 1.32 million to 10.89 million shares. And BlackRock Fund Advisors has lifted its position by 0.95% or 89956.0 shares – to 9.58 million shares.
With over 6.2 million Zoom Video Communications Inc. (ZM) shares trading Monday and a closing price of $80.26 on the day, the dollar volume was approximately $497.51 million. The shares have shown a negative half year performance of -10.15% and its price on 11/21/22 lost nearly -1.69%. Currently, there are 298.55M common shares owned by the public and among those 220.10M shares have been available to trade.
The analysts have set the share’s price value over the next 12 months at a high of $130.00 and a low of $70.00. The average price target is 18.17% above its recent price level and a downside to the estimated low will see the stock lose -14.66% over that period. But an upside of 38.26% will see the stock hit the forecast high price target while median target price for the stock is $95.00.
Insiders at the company have transacted a total of 275 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 70 of these insider trades were purchases, accounting for 643,178 shares. Insider sales of the common stock occurred on 205 occasions, with total insider shares sold totaling 578,606 shares.
The top 3 mutual fund holders in Zoom Video Communications Inc. are ARK Innovation ETF, Vanguard Total Stock Market Index, and Invesco QQQ Trust. ARK Innovation ETF owns 8.42 million shares of the company’s stock, all valued at over $702.24 million. The company sold -0.11 million shares recently to bring their total holdings to about 3.35% of the shares outstanding. Vanguard Total Stock Market Index bought 43231.0 shares to see its total holdings expand to 6.4 million shares valued at over $534.37 million and representing 2.55% of the shares outstanding. Invesco QQQ Trust sold 3330.0 shares to bring its total holdings to over 3.63 million shares at a value of $303.22 million. Invesco QQQ Trust now owns shares totaling to 1.45% of the shares outstanding.
Shares of Zoom Video Communications Inc. (NASDAQ: ZM) opened at $81.21, down -$0.43 from a prior closing price of $81.64. However, the script later moved the day high at 82.52, down -1.69%. The company’s stock has a 5-day price change of -4.85% and -1.30% over the past three months. ZM shares are trading -56.36% year to date (YTD), with the 12-month market performance down to -68.06% lower. It has a 12-month low price of $70.43 and touched a high of $265.23 over the same period. ZM has an average intraday trading volume of 4.43 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.85%, 1.99%, and -20.47% respectively.
Institutional ownership of Zoom Video Communications Inc. (NASDAQ: ZM) shares accounts for 63.20% of the company’s 298.55M shares outstanding. Mutual fund holders own 30.40%, while other institutional holders and individual stakeholders account for 31.62% and 2.59% respectively.
It has a market capitalization of $24.17B and a beta (3y monthly) value of -0.30. The stock’s trailing 12-month PE ratio is 24.82, while the earnings-per-share (ttm) stands at $3.23. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.62% over the week and 4.86% over the month.
Analysts forecast that Zoom Video Communications Inc. (ZM) will achieve an EPS of $0.84 for the current quarter, $0.8 for the next quarter and $3.67 for 2024. The lowest estimate earnings-per-share for the quarter is $0.81 while analysts give the company a high EPS estimate of $0.93. Comparatively, EPS for the current quarter was $1.11 a year ago. Earnings per share for the fiscal year are expected to increase by 99.60%, and -1.46% over the next financial year. EPS should shrink at an annualized rate of -11.34% over the next five years, compared to 141.50% over the past 5-year period.
Looking at the support for the ZM, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on October 11, 2022, with the firm’s price target at $130-$90. JP Morgan coverage for the Zoom Video Communications Inc. (ZM) stock in a research note released on October 07, 2022 offered a Neutral rating with a price target of $85. Credit Suisse was of a view on September 23, 2022 that the stock is Neutral, while MoffettNathanson gave the stock Sell rating on September 22, 2022, issuing a price target of $86. KeyBanc Capital Markets on their part issued Sector Weight rating on September 13, 2022.