A History of Outperforming Analyst Forecasts and Beating the Odds: ZoomInfo Technologies Inc. (ZI)

ZoomInfo Technologies Inc. (NASDAQ: ZI) stock fell -1.00% on Tuesday to $26.73 against a previous-day closing price of $27.00. With 2.36 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.51 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $27.25 whereas the lowest price it dropped to was $26.42. The 52-week range on ZI shows that it touched its highest point at $61.44 and its lowest point at $23.29 during that stretch. It currently has a 1-year price target of $40.38.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ZI was up-trending over the past week, with a rise of 1.29%, but this was down by -8.80% over a month. Three-month performance dropped to -40.43% while six-month performance fell -27.95%. The stock lost -41.88% in the past year, while it has lost -11.23% so far this year. A look at the trailing 12-month EPS for ZI yields 0.22 with Next year EPS estimates of 0.96. For the next quarter, that number is 0.22. This implies an EPS growth rate of 372.90% for this year and 14.47% for next year.

Float and Shares Shorts:

At present, 401.96 million ZI shares are outstanding with a float of 295.74 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.82 million, which was 3.18% higher than short shares on Sep 14, 2022. In addition to Mr. Henry L. Schuck as the firm’s Founder, Chairman & CEO, Mr. Christopher Joseph Hays serves as its COO & Pres.


Institutional Ownership:

Through their ownership of 87.14% of ZI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.86% of ZI, in contrast to 30.86% held by mutual funds. Shares owned by individuals account for 20.23%. As the largest shareholder in ZI with 6.84% of the stake, The Vanguard Group, Inc. holds 27,596,463 shares worth 27,596,463. A second-largest stockholder of ZI, Morgan Stanley Investment Managem, holds 23,597,349 shares, controlling over 5.85% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in ZI, holding 22,477,543 shares or 5.57% stake. With a 3.36% stake in ZI, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 13,558,044 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.59% of ZI stock, is the second-largest Mutual Fund holder. It holds 10,438,973 shares valued at 314.32 million. American Funds Fundamental Invest holds 2.19% of the stake in ZI, owning 8,837,400 shares worth 266.09 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZI since 21 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ZI analysts setting a high price target of $54.10 and a low target of $28.00, the average target price over the next 12 months is $38.85. Based on these targets, ZI could surge 102.39% to reach the target high and rise by 4.75% to reach the target low. Reaching the average price target will result in a growth of 45.34% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ZI will report FY 2022 earnings on 02/13/2024. Analysts have provided yearly estimates in a range of $0.89 being high and $0.83 being low. For ZI, this leads to a yearly average estimate of $0.84. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ZoomInfo Technologies Inc. surprised analysts by $0.04 when it reported $0.24 EPS against a consensus estimate of $0.20. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.21. The average estimate for the next quarter is thus $0.22.

Summary of Insider Activity:

Insiders traded ZI stock several times over the past three months with 6 Buys and 7 Sells. In these transactions, 206,499 shares were bought while 54,425 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 257 over the past year. The total number of shares bought during that period was 304,683 while 56,915,696 shares were sold.

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