Zeta Global (NYSE:ZETA) Shares Gap Up - Here's Why

Key Points

• Zeta Global shares initially jumped from a prior close of $33.55 to $35.15, though they later traded at $33.32 on volume of nearly 2 million shares.
• Analyst sentiment is broadly positive: 12 analysts rate the stock a Buy, with a consensus “Moderate Buy” rating and an average price target of $37.06. Several firms recently raised their targets to between $37 and $40.
• Zeta reported strong revenue growth of 43.6% year over year to $442.77 million, exceeding estimates, but its $0.03 quarterly EPS missed consensus by $0.17. Institutional investors own 87.75% of the company and several major funds recently increased their stakes.

Shares of Zeta Global Holdings Corp. (NYSE:ZETA - Get Free Report) gapped up prior to trading on Friday. The stock had previously closed at $33.55, but opened at $35.15. Zeta Global shares last traded at $33.32, with a volume of 1,973,792 shares traded.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ZETA shares. Royal Bank Of Canada boosted their price target on Zeta Global from $31.00 to $40.00 and gave the stock an "outperform" rating in a research report on Monday, October 5th. Freedom Capital cut shares of Zeta Global from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 6th. Canaccord Genuity Group raised their price objective on Zeta Global from $30.00 to $37.00 and gave the stock a "buy" rating in a research note on Friday, October 9th. New Street Research set a $38.00 price target on shares of Zeta Global in a research report on Friday, October 9th. Finally, Truist Financial raised their price target on shares of Zeta Global from $30.00 to $38.00 and gave the company a "buy" rating in a research note on Friday, October 9th. Twelve equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $37.06.

Zeta Global Stock Performance

The company has a market capitalization of $8.17 billion, a P/E ratio of -1,644.30, a PEG ratio of 4.55 and a beta of 1.39. The company has a quick ratio of 2.38, a current ratio of 2.38 and a debt-to-equity ratio of 0.21. The company's 50-day moving average is $30.51 and its two-hundred day moving average is $23.33.

Zeta Global (NYSE:ZETA - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.17). Zeta Global had a positive return on equity of 5.32% and a negative net margin of 0.15%. The company had revenue of $442.77 million for the quarter, compared to the consensus estimate of $420.61 million. During the same quarter in the previous year, the business earned ($0.10) earnings per share. Zeta Global's revenue was up 43.6% compared to the same quarter last year. Equities analysts anticipate that Zeta Global Holdings Corp. will post 0.21 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Contour Asset Management LLC raised its holdings in shares of Zeta Global by 26.3% in the 4th quarter. Contour Asset Management LLC now owns 11,162,626 shares of the company's stock valued at $227,159,000 after purchasing an additional 2,327,907 shares in the last quarter. Bank of America Corp DE grew its stake in Zeta Global by 47.7% during the 1st quarter. Bank of America Corp DE now owns 3,853,723 shares of the company's stock valued at $61,351,000 after purchasing an additional 1,244,057 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Zeta Global by 75.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,864,071 shares of the company's stock worth $45,583,000 after buying an additional 1,234,412 shares during the last quarter. Fort Washington Investment Advisors Inc. OH grew its holdings in Zeta Global by 66.4% during the first quarter. Fort Washington Investment Advisors Inc. OH now owns 1,142,960 shares of the company's stock worth $18,196,000 after acquiring an additional 456,200 shares during the period. Finally, Principal Financial Group Inc. boosted its holdings in Zeta Global by 7,696.7% during the first quarter. Principal Financial Group Inc. now owns 868,239 shares of the company's stock worth $13,822,000 after buying an additional 857,103 shares in the last quarter. Institutional investors own 87.75% of the company's stock.

Zeta Global Company Profile

Zeta Global is a technology company that provides data-driven marketing and customer-experience solutions to brands and agencies. Its platform helps organizations acquire, grow and retain customers by combining consumer data, artificial intelligence and marketing automation across digital channels.

The company's offerings include the Zeta Marketing Platform, which supports audience discovery, campaign planning, activation, personalization and measurement. Zeta also provides data-management and analytics capabilities through its proprietary data assets, helping marketers develop customer insights and deliver coordinated campaigns across channels such as email, online advertising, connected television and other digital media.

Founded in 2007, Zeta Global serves enterprise marketers and agencies, primarily in the United States and other markets where digital advertising and customer-engagement services are in demand.

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