Zoom Communications Inc (NASDAQ: ZM)’s stock price has gone decline by -0.54 in comparison to its previous close of 77.90, however, the company has experienced a -0.87% decrease in its stock price over the last five trading days. fool.com reported 2025-06-17 that Technology has been the market’s top-performing sector over the past five years, and it remains one of the most reliable engines of long-term growth. However, not every strong company in the space is performing well right now — some well-established names have seen their stock prices decline despite solid fundamentals.
Is It Worth Investing in Zoom Communications Inc (NASDAQ: ZM) Right Now?
Zoom Communications Inc (NASDAQ: ZM) has a higher price-to-earnings ratio of 23.26x compared to its average ratio. ZM has 36-month beta value of 0.69. Analysts have mixed views on the stock, with 13 analysts rating it as a “buy,” 3 as “overweight,” 19 as “hold,” and 0 as “sell.”
The public float for ZM is 258.23M, and currently, short sellers hold a 3.20% ratio of that float. The average trading volume of ZM on June 20, 2025 was 2.33M shares.
ZM’s Market Performance
ZM stock saw a decrease of -0.87% in the past week, with a monthly decline of -7.00% and a quarterly a decrease of 1.60%. The volatility ratio for the week is 1.14%, and the volatility levels for the last 30 days are 1.16% for Zoom Communications Inc (ZM). The simple moving average for the past 20 days is -2.73% for ZM’s stock, with a 0.03% simple moving average for the past 200 days.
Analysts’ Opinion of ZM
Needham, on the other hand, stated in their research note that they expect to see ZM reach a price target of $100. The rating they have provided for ZM stocks is “Buy” according to the report published on May 22nd, 2025.
Cantor Fitzgerald gave a rating of “Neutral” to ZM, setting the target price at $87 in the report published on January 17th of the current year.
ZM Trading at -0.50% from the 50-Day Moving Average
After a stumble in the market that brought ZM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.51% of loss for the given period.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ZM starting from Napolitano Janet, who sale 2,617 shares at the price of $76.78 back on Jun 13 ’25. After this action, Napolitano Janet now owns 4,728 shares of Zoom Communications Inc, valued at $200,922 using the latest closing price.
JANET ANN NAPOLITANO, the Director of Zoom Communications Inc, proposed sale 2,617 shares at $77.41 during a trade that took place back on Jun 13 ’25, which means that JANET ANN NAPOLITANO is holding shares at $202,582 based on the most recent closing price.
Stock Fundamentals for ZM
Current profitability levels for the company are sitting at:
- 0.17 for the present operating margin
- 0.76 for the gross margin
The net margin for Zoom Communications Inc stands at 0.22. The total capital return value is set at 0.09. Equity return is now at value 12.19, with 9.87 for asset returns.
Based on Zoom Communications Inc (ZM), the company’s capital structure generated 0.01 points at debt to capital in total, while cash flow to debt ratio is standing at 30.03.
Currently, EBITDA for the company is 935.93 million with net debt to EBITDA at -1.12. When we switch over and look at the enterprise to sales, we see a ratio of 4.74. The receivables turnover for the company is 9.85for trailing twelve months and the total asset turnover is 0.43. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.48.
Conclusion
To put it simply, Zoom Communications Inc (ZM) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
