Zeta Global Secures Outperform Rating From Royal Bank of Canada

On October 12, 2024, Royal Bank of Canada reaffirmed its outperform rating for Zeta Global (NYSE:ZETA) in a recent research note. The brokerage has set a target price of $34.00 for the stock, reflecting a positive outlook on the company's performance.

Other investment analysts have also shared their assessments of Zeta Global. Roth Mkm recently revised its price target from $33.00 to $44.00, assigning a buy rating on October 1st. Additionally, Bank of America increased its price target from $30.00 to $36.00 while maintaining a buy rating on September 26th. Similarly, Craig Hallum raised its target price from $35.00 to $37.00 on September 27th, continuing to endorse a buy rating for the stock.

In contrast, Morgan Stanley shifted from an overweight rating to an equal weight rating, while adjusting its price target upward from $18.00 to $30.00 on August 1st. Oppenheimer also increased its target price from $20.00 to $29.00 on the same date, giving Zeta Global an outperform rating.

A majority of analysts view the stock favorably, with one holding a hold rating, twelve assigning a buy rating, and one giving a strong buy rating. Current consensus data from MarketBeat.com indicates a consensus rating of Buy, with an average price target of $35.00.

Zeta Global Stock Performance

As of Wednesday, Zeta Global's shares opened at $31.66, marking a 1.2% increase. The company maintains a current ratio of 1.98, a quick ratio of 1.98, and a debt-to-equity ratio of 0.85. Over the past year, Zeta Global's stock has fluctuated between a low of $7.38 and a high of $34.14. Currently, the company has a market capitalization of approximately $6.93 billion, a P/E ratio of -29.87, and a beta of 1.27. The 50-day simple moving average stands at $26.81, while the two-hundred day simple moving average is $19.64.

On July 31st, Zeta Global released its quarterly earnings report, revealing an earnings per share (EPS) of ($0.16). This result fell short of analysts’ expectations, which had anticipated an EPS of $0.10, representing a miss of $0.26. The company reported revenue of $227.80 million during the quarter, exceeding expectations of $212.44 million. Despite a negative return on equity of 79.03% and a negative net margin of 17.76%, the company’s revenue grew by 32.6% year-over-year, compared to the same quarter last year when it posted an EPS of ($0.32). Analysts predict that Zeta Global will report an EPS of -0.41 for the current fiscal year.

Institutional Ownership Trends

The ownership landscape for Zeta Global has seen significant activity from institutional investors and hedge funds, with several increasing or reducing their positions in recent months. Regal Investment Advisors LLC augmented its stake by 5.2% during the fourth quarter, now holding 55,366 shares valued at approximately $488,000. Scalar Gauge Management LLC entered the fray with a new stake worth $6,411,000 in the fourth quarter.

Granahan Investment Management LLC also expanded its holdings in Zeta Global by 15.3%, currently owning over 8 million shares with a value of around $71.55 million after acquiring an additional 1,076,208 shares. Ophir Asset Management Pty Ltd established a new position in Zeta Global valued at $19.68 million in the same quarter. Vanguard Group Inc. increased its stake by 2.3%, now holding 16,286,528 shares valued at about $143.65 million. Overall, institutional investors now own an impressive 75.82% of Zeta Global’s stock.

Company Overview

Zeta Global Holdings Corp. operates a data-driven cloud platform that offers consumer intelligence and marketing automation software. The company provides its services both in the United States and internationally. Its Zeta Marketing Platform analyzes a vast array of structured and unstructured data points, utilizing advanced machine learning algorithms to predict consumer intent through an opted-in data set that enables omnichannel marketing. Additionally, the Consumer Data platform gathers, analyzes, and synthesizes diverse data points to create a unified view of consumers, capturing their identity, profile characteristics, behaviors, and purchase intentions.

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