On May 22, 2023, President and COO Joseph Hays sold 30,000 shares of ZoomInfo Technologies Inc (ZI, Financial), a leading provider of go-to-market intelligence solutions for sales and marketing teams. This sale comes as part of a series of transactions by Hays over the past year, during which he has sold a total of 149,142 shares and purchased none.
Who is Joseph Hays?
Joseph Hays serves as the President and Chief Operating Officer of ZoomInfo Technologies Inc. He has played a crucial role in the company's growth and success, overseeing operations and helping to drive strategic initiatives. With his extensive experience in the industry, Hays has been instrumental in shaping ZoomInfo's vision and direction.
ZoomInfo Technologies Inc's Business Description
ZoomInfo Technologies Inc is a cloud-based platform that provides comprehensive information on businesses and professionals, enabling sales and marketing teams to identify, connect, and engage with their target customers more effectively. The company's platform offers a range of features, including contact and company data, advanced search capabilities, and integrations with popular sales and marketing tools. By leveraging artificial intelligence and machine learning, ZoomInfo continually updates and enriches its database, ensuring that users have access to the most accurate and up-to-date information available.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for ZoomInfo Technologies Inc, while there have been 25 insider sells. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to cash in on their holdings.
On the day of Joseph Hays's recent sale, shares of ZoomInfo Technologies Inc were trading at $25.03, giving the stock a market cap of $9,780.610 million. The price-earnings ratio is 97.24, which is higher than the industry median of 26.98 but lower than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and its own historical valuation.
With a price of $25.03 and a GuruFocus Value of $50.16, ZoomInfo Technologies Inc has a price-to-GF-Value ratio of 0.5. Based on its GF Value, the stock is considered a possible value trap, and investors should think twice before making a decision.
GF Value Methodology
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, Joseph Hays's recent sale of 30,000 shares of ZoomInfo Technologies Inc is part of a broader trend of insider selling over the past year. While the stock's valuation appears to be high compared to its industry peers and historical median, its price-to-GF-Value ratio suggests that it may be a value trap. Investors should carefully consider these factors and conduct further research before making any investment decisions.
