ZoomInfo Technologies (NASDAQ:ZI) stock is under pressure, having lost about 47% of its value in three months. A slowdown in growth amid a weak macro environment has dragged the shares of this software company lower. Meanwhile, speaking at the RBC Capital Markets Global TMT Conference, ZI’s management confirmed that the operating environment deteriorated further in Q4. Following the announcement, ZI stock closed about 14% lower on Wednesday.
Notably, ZoomInfo’s management expects its top-line growth to decelerate sequentially. ZI Q4 revenues could increase by about 4% quarter-over-quarter, which is well below the sequential growth of 10.5% and 7.7% registered in Q2 and Q3, respectively. (Learn more about ZI’s financials here.)
During the Q3 conference call, the company’s CEO, Henry Schuck, said that the company witnessed increased macro pressure on deals in Q3, which led to an increase in the level of deal review and elongated sales cycles. Schuck added that this elongation trend has extended into Q4.
Is ZI a Good Stock to Buy?
Despite the weakness, analysts maintain a bullish outlook on ZI stock. It has received 18 Buy and one Hold for a Strong Buy consensus rating. Moreover, analysts’ average price target of $53.50 implies a 96.9% upside potential.
Our data shows that retail investors are optimistic about ZoomInfo stock. About 5.8% of investors holding portfolios on TipRanks have bought ZI stock in one month. However, insiders sold ZI stock worth $160.8K last quarter. Overall, it has a Neutral Smart Score of five on 10 on TipRanks.