On May 24, 2023, Aparna Bawa, the Chief Operating Officer (COO) of Zoom Video Communications Inc (ZM, Financial), sold 7,000 shares of the company's stock. This recent transaction is part of a series of insider sales by Bawa, who has sold a total of 98,589 shares over the past year and has not purchased any shares during the same period.
Who is Aparna Bawa?
Aparna Bawa serves as the COO of Zoom Video Communications Inc, a leading provider of video-first unified communications. In her role, Bawa is responsible for overseeing the company's operations, including sales, marketing, and customer support. She has been with the company since September 2019 and has played a crucial role in Zoom's growth and success.
Zoom Video Communications Inc's Business Description
Zoom Video Communications Inc is a technology company that specializes in providing video-first unified communications solutions. The company's platform combines video, voice, content sharing, and chat functionalities, enabling users to connect and collaborate seamlessly across various devices and locations. Zoom's solutions cater to businesses, educational institutions, and healthcare organizations, among others, helping them enhance communication, improve productivity, and streamline workflows.
Insider Trends
The insider transaction history for Zoom Video Communications Inc reveals that there have been no insider buys over the past year. In contrast, there have been 39 insider sells during the same period. This trend indicates that insiders may be taking advantage of the stock's current valuation to realize gains on their holdings.
Valuation
On the day of Aparna Bawa's recent sale, shares of Zoom Video Communications Inc were trading at $63.52 apiece, giving the stock a market capitalization of $19,709.543 million. The price-earnings ratio stands at 9,999.00, which is significantly higher than the industry median of 26.79 and the company's historical median price-earnings ratio.
With a current price of $63.52 and a GuruFocus Value of $267.47, Zoom Video Communications Inc has a price-to-GF-Value ratio of 0.24. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
The recent insider sell by Aparna Bawa, along with the overall trend of insider sales over the past year, may raise questions about the company's valuation and future prospects. However, the stock's current price-to-GF-Value ratio suggests that it is significantly undervalued, potentially offering an attractive entry point for investors who believe in the long-term growth potential of Zoom Video Communications Inc.
