ZM will report earnings after the close on Monday
The shares of Zoom Video Communications Inc (NASDAQ:ZM) are down 0.09% to trade at $295, at flatline ahead of its second-quarter earnings report -- due out after the close on Monday. Yesterday, the stock surpassed the $300 mark for the first time, though losing steam to close the day lower. Currently, ZM is still seeing resistance at the $302 region, and is up 334.1% year-to-date.
In the past five quarterly reports, three of ZM's post-earnings sessions were positive, including a 7.6% pop in early June. The security averaged a next-day return of 10.2%, regardless of direction, which is much smaller than the 15.4% move the options market is pricing in this time around.
ZM has been seeing bullish activity in the options pits ahead of these earnings. The stock's 10-day call/put volume ratio of 3.32 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 81% of readings from the past year. This means calls are being picked up at a faster-than-usual pace.
On the analyst front, 10 sport a "buy" or better rating, 10 a tepid "hold," and one a "strong sell." Meanwhile, the 12-month consensus price target of $234.11 is a 21.1% discount to current levels.