What's Going On With ZoomInfo Stock After Earnings?

ZoomInfo Technologies Inc. ZI shares are falling Tuesday after the company reported worse-than-expected financial results for the second quarter and announced a management transition.

The Details:

ZoomInfo missed analysts’ estimates on the top and bottom line for the quarter and guided third-quarter earnings and revenue to be below consensus estimates. 

"In the second quarter, we implemented a number of initiatives to position the company for long-term success. Having successfully launched ZoomInfo Copilot, our AI-powered go-to-market platform, we are further accelerating a shift upmarket," said Henry Schuck, founder and CEO of ZoomInfo. 

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Several analysts slashed price targets on ZoomInfo after the print: 

• Truist Securities maintained its Hold rating and lowered the price target from $16 to $11.
• RBC Capital analyst Rishi Jaluria maintained an Underperform rating and lowered the price target from $9 to $7.
• Piper Sandler maintained its Neutral rating and lowered the price target from $14 to $10.
• Deutsche Bank analyst Brad Zelnick maintained a Hold rating and lowered the price target from $17 to $12.
• Barclays maintained ZoomInfo with an Equal-Weight and lowered the price target from $15 to $11.

According to data from Benzinga Pro, ZoomInfo shares are dropping on heavy volume and trading at new 52-week lows.   

Is ZI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like ZoomInfo Technologies‘ page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. ZoomInfo Technologies does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on ZoomInfo Technologies will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ZI Price Action: According to Benzinga Pro, ZoomInfo shares are down 18.7% at $7.97 at the time of publication Tuesday.

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Image: Courtesy of ZoomInfo Technologies, Inc.