Ratios Reveal: Breaking Down Zoom Communications Inc (ZM)’s Financial Health

For those desiring to outshine the market, the strategic selection of individual stocks is paramount. Well-chosen stocks have the potential to substantially boost your wealth.

Zoom Communications Inc (NASDAQ: ZM) closed the day trading at $74.22 down -8.48% from the previous closing price of $81.10. In other words, the price has decreased by -$8.48 from its previous closing price. On the day, 11.06 million shares were traded.

Ratios:

For a better understanding of ZM, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 2.92 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 12.38. For the most recent quarter (mrq), Quick Ratio is recorded 4.50 and its Current Ratio is at 4.46. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.00.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, Cantor Fitzgerald on January 17, 2025, initiated with a Neutral rating and assigned the stock a target price of $87.

On January 07, 2025, Wells Fargo Upgraded its rating to Equal Weight which previously was Underweight and also upped its target price recommendation from $70 to $85.

Jefferies Upgraded its Hold to Buy on December 19, 2024, whereas the target price for the stock was revised from $85 to $100.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 04 ’25 when Yuan Eric S. sold 83,332 shares for $86.28 per share. The transaction valued at 7,189,667 led to the insider holds 0 shares of the business.

Yuan Eric S. sold 83,332 shares of ZM for $7,176,268 on Feb 05 ’25. The Chief Executive Officer now owns 0 shares after completing the transaction at $86.12 per share. On Jan 15 ’25, another insider, Chadwick Jonathan, who serves as the Director of the company, sold 25,000 shares for $80.33 each. As a result, the insider received 2,008,195 and left with 1,514 shares of the company.

Valuation Measures:

As of this moment, Zoom’s Price-to-Earnings (P/E) ratio for their current fiscal year is 23.18, and their Forward P/E ratio for the next fiscal year is 13.40. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 17.69. For the stock, the TTM Price-to-Sale (P/S) ratio is 4.88 while its Price-to-Book (P/B) ratio in mrq is 2.62.

Stock Price History:

Over the past 52 weeks, ZM has reached a high of $92.80, while it has fallen to a 52-week low of $55.06. The 50-Day Moving Average of the stock is -10.82%, while the 200-Day Moving Average is calculated to be 4.45%.

Shares Statistics:

A total of 306.50M shares are outstanding, with a floating share count of 261.45M. Insiders hold about 14.70% of the company’s shares, while institutions hold 61.85% stake in the company.

Most Popular