Around May 19th, The Bear Cave issued a short report on Zoom Info. The Bear Cave obtained hundreds of pages of consumer complaints from small businesses that have done business with Zoom Info.
Zoom Info reported a disastrous earnings report a week before the short report (May 8th, 2024). They issued downside guidance for their second quarter, and the stock was down 24% the next day.
The board did approve a $500 million increase in their buyback authorization, but that did not stop Goldman Sachs from downgrading the stock the next day to a sell from neutral with a $12 price target. Piper Sandler and Mizuho also lowered their rating and price target.
On August 5th, 2024, ZoomInfo missed earnings and guided lower for the following quarter and year. The stock dropped 10%, and Bank of America, Da Davidson, KeyBanc, and Raymond James downgraded the stock and lowered their price targets.
At this point, the stock is down about 35% from the Bear Cave short report, which is good for them.
At this point, ZoomInfo is panicking. They announced the appointment of two independent directors to bolster some confidence.
Fast-forward to August 12th.
The CEO had enough and bought 1,500,000 shares between $8.17 and $8.70, approximately 12.7 million dollars. The insider buy so far has put a floor on the stock, but it is still in a tremendous downtrend.
We want to see more buying from insiders and institutions before jumping on board this train.
