ZoomInfo Technologies Surpasses Analyst Target Price, Investor Decisions Ahead
In recent trading, shares of ZoomInfo Technologies Inc (Symbol: ZI) have crossed the average 12-month target price set by analysts at $11.64, currently selling at $11.77 per share. When a stock reaches the target price established by analysts, they typically have two options: either downgrade the stock due to valuation concerns or adjust their target price upward. An analyst’s decision may also depend on the company’s fundamental developments that contribute to the stock’s upward movement. If the outlook for the company improves, a price target increase may be warranted.
There are 21 different analyst targets within the Zacks coverage universe that contribute to the average for ZoomInfo Technologies Inc. While this average is a mathematical calculation, it includes both lower and higher targets. For instance, one analyst predicts a price of $7.00, while another has set a target as high as $15.00. The standard deviation among these targets is $2.329.
The significance of examining the average ZI price target lies in leveraging a “wisdom of crowds” approach. This method compiles the insights of multiple analysts rather than relying solely on a single expert’s opinion. As ZI trades above the average target of $11.64 per share, investors are prompted to reassess the company. The question at hand is whether $11.64 is merely a checkpoint toward a higher target or an indication that the valuation has become stretched—prompting some investors to consider reducing their holdings. Below is a table that illustrates the current views of analysts covering ZoomInfo Technologies Inc:
| Recent ZI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 5 | 5 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 14 | 13 | 13 | 14 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 4 | 5 | 4 | 3 |
| Average rating: | 3.0 | 3.08 | 2.92 | 2.83 |
The average rating, listed in the last row of the table, ranges from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Strong Sell. This article utilized data provided by Zacks Investment Research through Quandl.com. For the latest Zacks research report on ZI, visit here—FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
