Exploring ZoomInfo Technologies Inc. (ZI) Investor Profile: Who’s Buying and Why?

Who Invests in ZoomInfo Technologies Inc. (ZI) and Why?

Who Invests in ZoomInfo Technologies Inc. (ZI) and Why?

Understanding the types of investors involved with ZoomInfo Technologies Inc. (ZI) provides insight into the company’s market appeal and financial strategies. The investor base can be categorized primarily into three groups: retail investors, institutional investors, and hedge funds.

Key Investor Types

• Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. They often seek growth opportunities and may be influenced by market trends and company news.
• Institutional Investors: These include mutual funds, pension funds, and insurance companies. They typically invest large sums of money and conduct thorough research before making investment decisions. Institutional ownership can signify confidence in a company's long-term prospects.
• Hedge Funds: These are pooled investment funds that employ various strategies to earn active returns. Hedge funds may take significant positions in a company and can influence stock price through their trading activities.

Investment Motivations

Investors are attracted to ZoomInfo Technologies Inc. for several reasons:

• Growth Prospects: The company has shown potential for significant growth, evidenced by its revenue performance. For example, in Q2 of 2024, ZoomInfo reported revenue of $291.5 million, although it represented a 6% decrease from the same quarter in 2023, which had $308.6 million.
• Market Position: ZoomInfo is a leader in providing go-to-market software and data intelligence, appealing to investors looking for companies with strong competitive advantages.
• Adjusted EBITDA: For the six months ended June 30, 2024, adjusted EBITDA was $212.0 million, down from $255.5 million in the same period of 2023.

Investment Strategies

Investors employ various strategies when investing in ZoomInfo:

• Long-Term Holding: Many institutional investors tend to adopt a long-term approach, focusing on the company’s fundamentals and long-term growth potential.
• Short-Term Trading: Retail investors might engage in short-term trading based on market fluctuations and news releases that affect stock prices.
• Value Investing: Some investors may perceive the stock as undervalued based on its earnings potential and market position, leading them to invest with the expectation of future price appreciation.

Investor Ownership Breakdown

The following table summarizes the ownership breakdown of ZoomInfo Technologies Inc. as of 2024:

As of June 30, 2024, the company reported total stockholders' equity of $1,862.9 million, down from $2,119.3 million at the end of December 2023.

Investors' interest in ZoomInfo Technologies Inc. is driven by a combination of its growth prospects, market leadership, and financial performance, making it a significant player in the technology sector.

Institutional Ownership and Major Shareholders of ZoomInfo Technologies Inc. (ZI)

Institutional Ownership and Major Shareholders

As of June 30, 2024, the institutional ownership landscape for ZoomInfo Technologies Inc. reflects significant involvement from major institutional investors. The following table details the top institutional shareholders and their respective shareholdings:

In recent months, there have been notable changes in ownership among institutional investors. A review of the data indicates that:

• The Vanguard Group has increased its stake by 2.5% since March 2024.
• BlackRock has slightly decreased its holdings by 1.2%.
• State Street Corporation has maintained its position without significant changes.

The presence of large institutional investors plays a crucial role in the stock price dynamics and strategic direction of the company. These investors often provide liquidity and can influence management decisions through their voting power, particularly during shareholder meetings. Their actions can also affect market perception, as significant buying or selling activity by these entities can lead to volatility in stock prices.

Overall, the institutional ownership structure indicates a solid foundation of support, with major institutions holding a substantial portion of the outstanding shares. This could be indicative of confidence in the company's future growth prospects and overall financial health.

Key Investors and Their Influence on ZoomInfo Technologies Inc. (ZI)

Key Investors and Their Impact on ZoomInfo Technologies Inc. (ZI)

As of 2024, several notable investors have made significant moves in ZoomInfo Technologies Inc. (ZI), influencing the company’s strategies and stock performance.

Notable Investors

• Vanguard Group, Inc.: Holds approximately 8.1% of outstanding shares.
• BlackRock, Inc.: Owns around 7.3% of shares.
• Wellington Management Company, LLP: Owns about 6.5% of shares.
• FMR LLC (Fidelity): Holds roughly 5.9% of shares.

Investor Influence

These institutional investors play crucial roles in shaping company policies and governance. Their collective influence often leads to increased scrutiny of management decisions, particularly around financial performance and strategic direction. For instance, significant ownership stakes allow these investors to vote on board members and other critical matters, potentially swaying outcomes in favor of long-term growth strategies.

Additionally, large investors like Vanguard and BlackRock have been known to advocate for sustainable business practices and transparency, impacting operational decisions at ZoomInfo. Their focus on ESG (Environmental, Social, and Governance) factors can lead to enhanced corporate responsibility initiatives.

Recent Moves

In recent months, notable actions included:

• Share Repurchases: The company repurchased 10,799,791 shares at a cost of $148.7 million as part of its ongoing share repurchase program initiated in March 2023.
• Vanguard Group: Increased its stake by acquiring an additional 1.5 million shares in the last quarter.
• BlackRock, Inc.: Recently sold 2 million shares, reflecting a strategic reallocation of their portfolio.

Financial Data Overview

As of June 30, 2024, the company reported a net loss of $24.4 million with total revenues of $291.5 million for the second quarter. The total stockholders' equity stood at $1.86 billion. This financial backdrop can influence investor sentiment and further impacts stock movements in the market.

Market Impact and Investor Sentiment of ZoomInfo Technologies Inc. (ZI)

Market Impact and Investor Sentiment

Investor Sentiment

As of 2024, the current sentiment among major shareholders toward the company is characterized as neutral. This sentiment is reflected in the fluctuating stock performance and the mixed reactions to financial results and macroeconomic conditions. Notably, the company reported a net loss of $24.4 million for the second quarter of 2024, compared to a net income of $38.1 million in the same period of 2023.

Recent Market Reactions

The stock market has shown varied responses to changes in ownership and significant investor movements. For instance, the company executed a share repurchase program, repurchasing 10,799,791 shares at a total cost of approximately $148.7 million from March to June 2024. Following this, the share price experienced a slight increase, indicating a potential positive response from the market to the reduction in outstanding shares.

Analyst Perspectives

Analysts have provided insights suggesting that the impact of key investors on the company's future remains significant. For instance, the company's net revenue retention rate was reported at 85% as of June 30, 2024. Analysts believe that maintaining a high retention rate is crucial for future growth, especially in light of current economic challenges. Furthermore, the company has been actively working to refine its customer base, focusing on customers likely to pay and renew contracts, which analysts view as a strategic move to enhance long-term stability.

Overall, the market's response to ownership changes and investor actions, coupled with analyst insights, suggests a careful balancing act as the company navigates its financial landscape amid fluctuating investor sentiment.