ZoomInfo Technologies (NASDAQ:GTM) Trading Down 5.3% After Analyst Downgrade

Key Points

• ZoomInfo Technologies shares fell 5.3% after Jefferies downgraded the stock from buy to hold and cut its price target to $4 from $12.
• Other analysts have also turned more cautious, with recent target cuts from UBS, Citigroup, and Piper Sandler; the stock now carries a consensus “Reduce” rating and an average price target of $6.56.
• The company recently reported better-than-expected quarterly earnings of $0.28 per share on $310.2 million in revenue, but the stock remains under pressure amid a wave of analyst downgrades and insider selling.

Shares of ZoomInfo Technologies Inc. (NASDAQ:GTM - Get Free Report) were down 5.3% during mid-day trading on Thursday after Jefferies Financial Group downgraded the stock from a buy rating to a hold rating. Jefferies Financial Group now has a $4.00 price target on the stock, down from their previous price target of $12.00. ZoomInfo Technologies traded as low as $3.48 and last traded at $3.4750. Approximately 2,623,480 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 10,027,713 shares. The stock had previously closed at $3.67.

A number of other equities research analysts also recently commented on the stock. UBS Group reduced their price objective on shares of ZoomInfo Technologies from $8.50 to $5.00 and set a "neutral" rating for the company in a research report on Tuesday, May 12th. Citigroup reduced their price objective on shares of ZoomInfo Technologies from $5.00 to $4.00 and set a "sell" rating for the company in a research note on Wednesday, May 13th. JPMorgan Chase & Co. decreased their price objective on shares of ZoomInfo Technologies from $12.00 to $11.00 and set an "overweight" rating on the stock in a report on Tuesday, May 12th. Piper Sandler restated a "neutral" rating and set a $4.00 target price (down from $7.00) on shares of ZoomInfo Technologies in a research report on Tuesday, May 12th. Finally, Bank of America reaffirmed an "underperform" rating and issued a $4.00 target price on shares of ZoomInfo Technologies in a report on Tuesday. Two investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and seven have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $6.56.

Insider Transactions at ZoomInfo Technologies

In other ZoomInfo Technologies news, General Counsel Ashley Mcgrane sold 6,959 shares of the company's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $5.87, for a total value of $40,849.33. Following the sale, the general counsel owned 76,872 shares of the company's stock, valued at $451,238.64. This represents a 8.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CRO James M. Roth sold 35,723 shares of the stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $5.87, for a total transaction of $209,694.01. Following the completion of the sale, the executive owned 139,795 shares in the company, valued at $820,596.65. This represents a 20.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 44,727 shares of company stock worth $262,834. 9.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ZoomInfo Technologies

Institutional investors and hedge funds have recently bought and sold shares of the stock. Global Retirement Partners LLC purchased a new position in ZoomInfo Technologies during the fourth quarter worth $26,000. Fifth Third Bancorp purchased a new stake in shares of ZoomInfo Technologies during the fourth quarter worth about $29,000. Covestor Ltd acquired a new position in shares of ZoomInfo Technologies in the fourth quarter valued at approximately $34,000. Allworth Financial LP purchased a new position in shares of ZoomInfo Technologies during the third quarter valued at approximately $40,000. Finally, Parallel Advisors LLC purchased a new position in shares of ZoomInfo Technologies during the fourth quarter valued at approximately $40,000. Hedge funds and other institutional investors own 95.47% of the company's stock.

ZoomInfo Technologies Stock Performance

The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 8.69, a price-to-earnings-growth ratio of 0.78 and a beta of 1.04. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.69 and a quick ratio of 0.69. The stock's 50-day moving average is $5.70 and its 200-day moving average is $7.82.

ZoomInfo Technologies (NASDAQ:GTM - Get Free Report) last released its earnings results on Monday, May 11th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.10. The firm had revenue of $310.20 million during the quarter. ZoomInfo Technologies had a net margin of 10.10% and a return on equity of 17.43%. ZoomInfo Technologies's revenue for the quarter was up 1.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.23 earnings per share. ZoomInfo Technologies has set its FY 2026 guidance at 1.100-1.120 EPS and its Q2 2026 guidance at 0.260-0.280 EPS. Analysts anticipate that ZoomInfo Technologies Inc. will post 0.79 EPS for the current fiscal year.

ZoomInfo Technologies Company Profile

ZoomInfo Technologies NASDAQ: GTM is a leading provider of go-to-market intelligence and sales engagement software designed to help organizations accelerate growth. The company offers a cloud-based platform that delivers comprehensive contact and company data, intent signals, and analytics to support prospecting, lead generation, and customer retention. Its solutions enable sales and marketing teams to identify and engage target accounts, personalize outreach, and optimize campaigns with real-time insights into buyer behavior and market trends.

Founded in 2007 and headquartered in Waltham, Massachusetts, ZoomInfo Technologies has expanded its global footprint across North America, Europe, and Asia–Pacific.

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