Khan Imran, a director at Zeta Global Holdings Corp. (NYSE:ZETA), recently made a substantial acquisition of the company's Class A common stock. According to a recent filing, Imran purchased 55,000 shares on November 18, 2024, at an average price of approximately $18.96 per share. This transaction, totaling around $1.04 million, was executed through Proem Investments Master Fund LP, where Imran holds a managing role. Following this purchase, Imran's indirect ownership amounts to 55,000 shares, with an additional 21,241 shares directly owned.
In other recent news, Zeta Global has made significant strides in its financial performance, reporting a 42% year-over-year increase in Q3 2024 revenue to $268 million and a 59% rise in adjusted EBITDA to $54 million. Amid these developments, Zeta Global faced a downgrade from KeyBanc Capital Markets from Overweight to Sector Weight due to short-term market dynamics. However, several firms including B.Riley, DA Davidson, and Needham have reaffirmed their Buy ratings on Zeta Global.
On the other hand, Canaccord Genuity adjusted its price target for Zeta Global, reducing it to $24 from the previous $42, while maintaining a Buy rating. The company also announced a $100 million share repurchase program, signaling confidence in its stock. In response to a short-seller report, Zeta Global emphasized the reliability of its financial practices and refuted allegations of revenue manipulation and predatory consumer data collection.
The company's Co-Founder, Chairman, and CEO David A. Steinberg, along with other company leaders and Board of Directors members, plan to purchase approximately $3 million of the company's Class A common stock, showcasing their belief in Zeta's value and direction. The recent developments reflect the growing recognition of Zeta Global's robust financial performance and potential for future growth.
InvestingPro Insights
The recent insider purchase by Khan Imran aligns with several positive indicators for Zeta Global Holdings Corp. (NYSE:ZETA). According to InvestingPro data, Zeta has demonstrated strong revenue growth, with a 29.97% increase over the last twelve months as of Q3 2024, reaching $901.4 million. This growth trajectory is even more pronounced in the most recent quarter, with revenue surging by 41.97% compared to the same period last year.
InvestingPro Tips highlight that analysts anticipate continued sales growth for Zeta in the current year, which could explain the director's confidence in increasing his stake. Additionally, 11 analysts have revised their earnings expectations upwards for the upcoming period, suggesting a positive outlook for the company's financial performance.
Despite the recent stock price volatility, with the share price falling significantly over the last three months and taking a big hit in the past week, Zeta's fundamentals appear robust. The company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, indicating a strong financial position.
It's worth noting that while Zeta is not currently profitable over the last twelve months, analysts predict the company will turn profitable this year. This potential turnaround, combined with the company's high gross profit margin of 60.26%, could be driving insider confidence.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Zeta Global Holdings Corp., providing a deeper understanding of the company's prospects and potential risks.
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