NEW YORK – Zeta Global (NYSE: ZETA), an AI-powered marketing technology company, announced today that its Co-Founder, Chairman, and CEO David A. Steinberg, alongside other company leaders and Board of Directors members, intend to purchase approximately $3 million of the company’s Class A common stock. This collective investment by Zeta’s insiders is a gesture of confidence in the firm’s stability and future prospects.
The move follows a recent report containing what Steinberg described as “false claims and objectively wrong information” about the company. By committing to buy shares, Steinberg and his colleagues aim to reaffirm their belief in Zeta’s value and direction. “Members of the Board, Company leadership, and I are showing our confidence in our Company’s integrity by making these purchases,” Steinberg stated, countering the negative assertions of the previous week.
Steinberg further expressed his view that the current share price does not reflect the company’s true value, stating, “I believe the current share price is undervalued, and I am bullish about our future.”
Zeta Global specializes in using artificial intelligence and a vast database of consumer signals to help marketers efficiently acquire, grow, and retain customers. The company’s Zeta Marketing Platform is designed to simplify sophisticated marketing tasks by integrating identity, intelligence, and omnichannel activation into one platform.
The announcement of the planned stock purchases is based on a press release statement and comes as Zeta Global looks to reinforce its market position in the wake of challenges. As with any forward-looking statements, it’s important to note that they are subject to risks, uncertainties, and assumptions and should not be overly relied upon as guarantees of future performance.
Investors and market observers will be watching closely to see if this show of confidence by Zeta’s leadership has the intended effect on the company’s stock performance and market perception.
In other recent news, Zeta Global Holdings Corp has been the focus of investor attention due to a series of developments. The company reported a 42% year-over-year increase in Q3 2024 revenue to $268 million and a 59% rise in adjusted EBITDA to $54 million, leading to an upward revision of its full-year 2024 revenue outlook to $986 million. Amid these developments, Zeta Global faced a downgrade from KeyBanc Capital Markets from Overweight to Sector Weight due to short-term market dynamics.
In response to a short-seller report, Zeta Global emphasized the reliability of its financial practices and initiated a new $100 million share repurchase program. B.Riley and DA Davidson reaffirmed their Buy ratings on Zeta Global, while Canaccord Genuity adjusted its price target for Zeta, reducing it to $24 from the previous $42, but maintained a Buy rating.
Needham also reiterated its Buy rating and a $43.00 price target on Zeta Global. Furthermore, Craig-Hallum increased its price target for Zeta Global, highlighting the company’s AI and sales force expansion. Truist Securities also raised its price target following strong Q3 results, while Oppenheimer maintained an Outperform rating, projecting steady 20% organic growth.
InvestingPro Insights
The recent announcement of insider stock purchases by Zeta Global’s leadership aligns with several key metrics and trends identified by InvestingPro. Despite the company’s recent stock price volatility, which InvestingPro data shows as a 52.15% decline over the past week and a 36.99% drop in the last month, there are positive indicators supporting the management’s bullish stance.
InvestingPro Tips highlight that Zeta holds more cash than debt on its balance sheet, suggesting a strong financial position. This liquidity strength is further supported by the fact that Zeta’s liquid assets exceed its short-term obligations. These factors may contribute to the confidence expressed by CEO David A. Steinberg and other insiders in their decision to purchase company stock.
Moreover, InvestingPro data reveals impressive revenue growth, with a 41.97% increase in quarterly revenue as of Q3 2024. This robust top-line performance underscores the company’s ability to expand its market presence in the AI-powered marketing technology sector.
While Zeta is not currently profitable over the last twelve months, InvestingPro Tips indicate that analysts predict the company will be profitable this year. This projection, coupled with the fact that 11 analysts have revised their earnings upwards for the upcoming period, suggests a potentially improving financial outlook that could justify the management’s view of the stock being undervalued.
It’s worth noting that InvestingPro offers 13 additional tips for Zeta Global, providing investors with a more comprehensive analysis of the company’s financial health and market position. These insights can be particularly valuable in contextualizing the recent insider buying activity and assessing Zeta’s long-term prospects in the competitive marketing technology landscape.
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