ZipRecruiter (NYSE:ZIP) Reaches New 12-Month High After Earnings Beat

Key Points

• ZipRecruiter shares hit a 52-week high of $6.18 after earnings, up sharply from the previous close of $4.29.
• Q3 results beat expectations: earnings were $0.06 per share versus analysts’ forecast of a $0.11 loss, while revenue reached $124.4 million, up 8% year over year. Q4 revenue guidance of $118 million–$122 million also topped consensus.
• Paid employers increased 10% to 74,000, but monetization declined, a potential pressure to watch. Analysts’ average rating remains “Hold,” with a $4.17 average price target.

ZipRecruiter, Inc. (NYSE:ZIP - Get Free Report) reached a new 52-week high on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $6.18 and last traded at $6.1790, with a volume of 3,478,429 shares changing hands. The stock had previously closed at $4.29.

The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.17. The business had revenue of $124.44 million for the quarter.

ZipRecruiter News Roundup

Here are the key news stories impacting ZipRecruiter this week:

• Positive Sentiment: Q3 revenue was $124.4 million, up 8% year over year, and earnings were approximately $0.05–$0.06 per share, versus analysts’ expected loss of $0.11. The results beat expectations. Zacks Q3 results article
• Positive Sentiment: Q4 revenue guidance of $118 million–$122 million is above the $115.8 million consensus estimate, suggesting the company expects business to remain resilient. Q3 earnings call highlights
• Positive Sentiment: Quarterly paid employers rose 10% year over year to 74,000. An analyst also highlighted improved margins, debt reduction and $22 million in year-to-date free cash flow, and upgraded the stock’s rating. Seeking Alpha turnaround analysis
• Neutral Sentiment: The analyst noted that monetization declined, attributing the pressure to timing. Whether that proves temporary will be important to watch. Seeking Alpha turnaround analysis

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on ZIP shares. The Goldman Sachs Group raised their target price on ZipRecruiter from $3.50 to $5.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Weiss Ratings upgraded ZipRecruiter from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, October 27th. Wall Street Zen lowered ZipRecruiter from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, UBS Group raised their price objective on ZipRecruiter from $4.00 to $4.50 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Four analysts have rated the stock with a Hold rating. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $4.17.

Insider Buying and Selling at ZipRecruiter

In other ZipRecruiter news, EVP Boris F. Shimanovsky sold 30,000 shares of the company's stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $4.70, for a total value of $141,000.00. Following the transaction, the executive vice president directly owned 408,975 shares in the company, valued at $1,922,182.50. This represents a 6.83% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Garefis sold 7,879 shares of the firm's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $4.56, for a total value of $35,928.24. Following the completion of the sale, the executive vice president directly owned 202,724 shares in the company, valued at approximately $924,421.44. The trade was a 3.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 151,318 shares of company stock worth $608,431 over the last three months. Company insiders own 19.85% of the company's stock.

Institutional Investors Weigh In On ZipRecruiter

Hedge funds have recently bought and sold shares of the stock. Citizens Financial Group Inc. RI lifted its position in ZipRecruiter by 6.4% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 37,647 shares of the company's stock valued at $132,000 after acquiring an additional 2,264 shares during the period. AXQ Capital LP purchased a new stake in ZipRecruiter in the second quarter worth about $38,000. Ritholtz Wealth Management bought a new position in shares of ZipRecruiter during the third quarter valued at approximately $39,000. Russell Investments Group Ltd. increased its stake in shares of ZipRecruiter by 7.7% during the third quarter. Russell Investments Group Ltd. now owns 155,420 shares of the company's stock valued at $546,000 after purchasing an additional 11,112 shares in the last quarter. Finally, Caerus Investment Advisors LLC bought a new position in shares of ZipRecruiter during the first quarter valued at approximately $25,000. 70.55% of the stock is currently owned by institutional investors.

ZipRecruiter Stock Up 45.0%

The company's fifty day moving average price is $4.04 and its 200-day moving average price is $3.39. The stock has a market capitalization of $511.64 million, a PE ratio of 17.72 and a beta of 1.54.

ZipRecruiter Company Profile

ZipRecruiter, Inc. operates an online employment marketplace that connects businesses with job seekers. Its platform enables employers to create and distribute job postings across a broad network of online channels, while helping candidates search for available positions and apply for roles. The company uses technology and matching tools to recommend relevant candidates to employers and suitable job opportunities to job seekers. Its services are designed for businesses of various sizes, including small and midsize employers, as well as staffing firms and larger organizations.

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