Zeta Global Holdings Insiders Buy Stock After Short-Report

Dhaka, Bangladesh - 20 August 2024: The Zeta logo is displayed on a smartphone. - Stock editorial photography

Main points

Zeta Global Holdings’ stock price is down because of a short report alleging financial misconduct.

Zeta Global Holdings’ stock price is set to rebound as management’s denial clearly contradicts the claims.

Analysts remain steadfast in their support and see this stock moving up to 100%.

Zeta Global Holdings’ (NYSE: ZETA) Stock prices fell sharply in November due to a short report. The report alleges financial misconduct and predatory business practices that appear to be unsubstantiated. Outside counsel assisted with the company’s detailed response, which denied the claims, calling them self-serving misrepresentations and speculative assumptions. The takeaway is that this marketing-focused data cloud provider is fundamentally sound and trades at a discount.

The discount in Zeta Global Holdings shares has been highlighted by insider buying, a move to support the market not with money but with sentiment. Insiders own a substantial double-digit chunk of shares and have no reason to buy this stock other than its value, scandal or not. Four insiders, including the CEO and CFO, bought the stock, which was also significant because it was the first move in a year, and the last to sell.

Institutional activism is also telling. Institutions own about 75% of the stock and are buying the balance after the IPO. The pace of purchases picked up in 2024 and remains strong in Q4, with purchases outpacing sales more than 2-to-1. The largest shareholders include fund managers Vanguard and BlackRock, but institutions are widely represented, providing a solid support base. Recent big buyers include Geode Capital Management and State Street, which bought the stock after the short report was issued and own about 2% each.

Zeta Global Holdings growth will accelerate in 2024

Zeta Global Holdings is an omnichannel, Data-centric cloud services Provider that provides enterprise marketing intelligence and automation services. of this AI-powered business Growing at a high double-digit pace in 2024, bordering on hyper-growth and beating consensus estimates on growing customer base and deepening service penetration. The only bad news is that growth will slow to the 20% range next year, but forecasts are low. AI service growth is only the first innings of a long game, and Zeta Global Holdings is well positioned to deliver. Easing monetary, regulatory, and tax policy is expected to create an economic tailwind in 2025 that will boost demand across the economy.

PayPal, Tesla, SpaceX… Elon’s next project is bigger than all of them

From Brownstone Research | Ed

In February 2016, when almost no one was talking about artificial intelligence… I picked Nvidia as one of my favorite stocks. Today, it is probably the most popular stock in the world. I believe this Elon Musk “silent companion” could be the next big AI winner.

So please click here to see details because many people can become rich.

Analysts remain steadfast in their support for Zeta Global Holdings. A downgrade hold and a price target decrease due to the short report were offset by a recent price target increase from Canaccord Genuity. Canaccord waited until the company issued its rebuttal before making its move. It raised its price target to $28, citing a “more comfortable” view of the business.

In his opinion, the company is on solid footing, and management is doing a good job of strengthening public opinion. Their efforts are not limited to buying stocks for personal accounts but include a new company buyback authorization. The new right is valued at $100 million and increases the current allocation to $114 million, which is 2.4% of the stock. Regarding the balance sheet, the company is well capitalized with minimal debt and ultra-low leverage. Total liabilities at the end of Q3 were less than 1x equity and 1x cash.

Technical Outlook: Zeta Global Holdings falls to a critical support level

The price action in Zeta Global Holdings is ugly. The stock fell more than 50% to a critical support level near $18. This level corresponds to the consolidation earlier in the year and may be strong enough to prevent the market from falling further. ZETA stock price could rebound sharply in that scenario, potentially pushing past the analyst consensus target of $38, a 100% gain from the critical support level. If not, the market may fall to new lows, which is unexpected. Consensus forecasts for Zeta Global Holdings’ revenue and profit growth through the end of the decade.

Zeta Global ZETA Stock Chart