There is no way ZoomInfo Technologies Inc. (ZI) can keep these numbers up

ZoomInfo Technologies Inc. (NASDAQ: ZI) stock fell -5.10% on Thursday to $23.07 against a previous-day closing price of $24.31. With 4.27 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.69 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $24.50 whereas the lowest price it dropped to was $23.04. The 52-week range on ZI shows that it touched its highest point at $51.86 and its lowest point at $20.33 during that stretch. It currently has a 1-year price target of $32.37.

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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 down-trending over the past week, with a drop of -4.11%, but this was up by 8.41% over a month. Three-month performance dropped to -8.42% while six-month performance fell -15.68%. The stock lost -33.34% in the past year, while it has lost -23.38% so far this year. A look at the trailing 12-month EPS for ZI yields 0.25 with Next year EPS estimates of 1.16. For the next quarter, that number is 0.23. This implies an EPS growth rate of -40.00% for this year and 16.42% for next year. EPS is expected to grow by 18.96% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 51.34%.

Float and Shares Shorts:

At present, 403.41 million ZI shares are outstanding with a float of 295.74 million shares on hand for trading. On Apr 27, 2023, short shares totaled 9.54 million, which was 2.37% higher than short shares on Mar 30, 2023. 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 89.23% of ZI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.94% of ZI, in contrast to 31.34% held by mutual funds. Shares owned by individuals account for 21.70%. As the largest shareholder in ZI with 9.07% of the stake, Capital Research & Management Co holds 36,664,690 shares worth 36,664,690. A second-largest stockholder of ZI, The Vanguard Group, Inc., holds 29,886,333 shares, controlling over 7.39% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in ZI, holding 18,452,000 shares or 4.56% stake. With a 2.64% stake in ZI, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 10,685,318 shares are owned by the mutual fund manager. The American Balanced Fund, which owns about 2.26% of ZI stock, is the second-largest Mutual Fund holder. It holds 9,127,300 shares valued at 199.98 million. American Funds Fundamental Invest holds 2.19% of the stake in ZI, owning 8,837,400 shares worth 193.63 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, ZI reported revenue of $267.10M and operating income of $40.60M. The EBITDA in the recently reported quarter was $61.70M and diluted EPS was $0.04.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZI since 0 analysts follow the stock currently. 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 $40.00 and a low target of $25.00, the average target price over the next 12 months is $31.20. Based on these targets, ZI could surge 73.39% to reach the target high and rise by 8.37% to reach the target low. Reaching the average price target will result in a growth of 35.24% 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.

Summary of Insider Activity:

Insiders traded ZI stock several times over the past three months with 8 Buys and 9 Sells. In these transactions, 117,620 shares were bought while 85,481 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 111 over the past year. The total number of shares bought during that period was 387,235 while 48,440,966 shares were sold.

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