Zoom Video Communications (NASDAQ:ZM) Sees Large Volume Increase – Should You Buy?

Zoom Video Communications, Inc. (NASDAQ:ZM) shares saw an uptick in trading volume on Tuesday . 1,832,353 shares changed hands during trading, a decline of 23% from the previous session’s volume of 2,386,979 shares.The stock last traded at $73.98 and had previously closed at $81.10.

Analyst Ratings Changes

A number of research firms have recently weighed in on ZM. Jefferies Financial Group upgraded shares of Zoom Video Communications from a “hold” rating to a “buy” rating and raised their price target for the company from $85.00 to $100.00 in a research note on Thursday, December 19th. Stifel Nicolaus dropped their target price on Zoom Video Communications from $90.00 to $85.00 and set a “hold” rating for the company in a research report on Tuesday. Evercore ISI upgraded Zoom Video Communications from an “in-line” rating to an “outperform” rating and boosted their price target for the stock from $70.00 to $115.00 in a report on Tuesday, November 26th. The Goldman Sachs Group raised their price objective on shares of Zoom Video Communications from $72.00 to $86.00 and gave the company a “neutral” rating in a report on Tuesday, November 26th. Finally, Needham & Company LLC restated a “hold” rating on shares of Zoom Video Communications in a research report on Tuesday. Sixteen investment analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, Zoom Video Communications presently has a consensus rating of “Hold” and a consensus target price of $89.81.

Zoom Video Communications Stock Performance

The company has a market capitalization of $22.77 billion and a PE ratio of 24.86. The company’s fifty day moving average is $83.13 and its 200-day moving average is $76.55.

Insider Transactions at Zoom Video Communications

In other Zoom Video Communications news, COO Aparna Bawa sold 9,317 shares of the company’s stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $78.69, for a total value of $733,154.73. Following the transaction, the chief operating officer now directly owns 14,053 shares in the company, valued at $1,105,830.57. This represents a 39.87 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Eric S. Yuan sold 83,332 shares of Zoom Video Communications stock in a transaction that occurred on Tuesday, February 4th. The shares were sold at an average price of $86.28, for a total transaction of $7,189,884.96. The disclosure for this sale can be found here. In the last quarter, insiders sold 382,242 shares of company stock worth $31,230,938. 10.78% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zoom Video Communications

Hedge funds have recently made changes to their positions in the company. FMR LLC lifted its stake in Zoom Video Communications by 2.3% in the fourth quarter. FMR LLC now owns 12,727,532 shares of the company’s stock worth $1,038,694,000 after acquiring an additional 282,645 shares during the period. Norges Bank purchased a new position in Zoom Video Communications during the 4th quarter worth approximately $751,908,000. AQR Capital Management LLC boosted its holdings in shares of Zoom Video Communications by 5.2% in the 4th quarter. AQR Capital Management LLC now owns 7,538,744 shares of the company’s stock valued at $615,237,000 after acquiring an additional 373,509 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Zoom Video Communications by 24.3% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 6,385,523 shares of the company’s stock worth $521,123,000 after acquiring an additional 1,247,717 shares during the period. Finally, State Street Corp raised its holdings in shares of Zoom Video Communications by 2.3% during the third quarter. State Street Corp now owns 6,106,293 shares of the company’s stock worth $425,853,000 after purchasing an additional 134,559 shares during the last quarter. 66.54% of the stock is currently owned by hedge funds and other institutional investors.

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.