ZoomInfo Technologies Inc. (NASDAQ:ZI) Chief Technology Officer, Dasdan Ali, has recently sold a portion of his holdings in the company. According to the latest filings, Ali sold 5,862 shares of common stock at prices ranging from $11.80 to $12.07, with the total transaction amounting to over $69,000.
The sell-off took place on June 4th and was executed under a Rule 10b5-1 trading plan, a mechanism that allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information. This allows insiders to avoid accusations of insider trading.
In addition to the sale, the filing also revealed that on June 1st, shares were withheld to cover tax liabilities associated with the vesting of restricted stock units (RSUs). This transaction involved 16,281 shares of common stock, valued at $12.28 per share, totaling nearly $200,000.
It's worth noting that the same day, Ali acquired 39,729 shares through the vesting of RSUs, which represents a contingent right to receive shares of the issuer's common stock. However, this transaction did not involve a purchase price per share and therefore had a total transaction value of $0.
Following these transactions, Ali's ownership in ZoomInfo Technologies Inc. stands at 87,540 shares of common stock directly held, and 278,104 shares underlying vested RSUs.
Investors and market watchers often pay close attention to insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. However, such transactions are common and can be motivated by various factors, including personal financial management and not necessarily a reflection of the company's future performance.
ZoomInfo Technologies Inc., headquartered in Vancouver, Washington, is a leading global provider of go-to-market software, data, and intelligence for over 20,000 companies worldwide.
InvestingPro Insights
As ZoomInfo Technologies Inc. (NASDAQ:ZI) navigates through the market, recent transactions by its Chief Technology Officer have caught the attention of investors. While insider selling can sometimes raise concerns, it's essential to consider the broader financial context of the company. According to InvestingPro data, ZoomInfo has a market capitalization of $4.45 billion and is trading at a price-to-earnings (P/E) ratio of 59.3, which is a premium compared to the industry average. This high earnings multiple might suggest expectations of future growth, which aligns with the company's revenue growth of 7.94% over the last twelve months as of Q1 2024.
The company boasts an impressive gross profit margin of 88.96%, reflecting its ability to maintain profitability. Such a margin is a testament to the company's operational efficiency and could be a reassuring factor for investors considering the stock's recent performance. Despite the recent insider sales, InvestingPro Tips indicate that management has been actively buying back shares and that the company has a high shareholder yield. These actions often signal confidence in the company's valuation and future prospects.
Moreover, ZoomInfo's stock has experienced a significant decline over the last year, with a 55.09% drop in its price total return. This could present a potential opportunity for investors as the stock is trading near its 52-week low, and the company's liquid assets exceed its short-term obligations, suggesting financial resilience. Investors looking for additional insights into ZoomInfo Technologies Inc. can find more InvestingPro Tips by visiting https://www.investing.com/pro/ZI, including 19 tips for a deeper analysis. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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