On December 31, 2024, Dragoneer Investment Group, LLC (Trades, Portfolio) executed a substantial reduction in its holdings of ZoomInfo Technologies Inc (ZI, Financial). The firm decreased its position by 15,796,734 shares, which represents a 71.41% decrease in its stake. This transaction was carried out at a trade price of $10.51 per share. Following this reduction, Dragoneer Investment Group, LLC (Trades, Portfolio) now holds 6,323,331 shares of ZoomInfo, reflecting a significant shift in its investment strategy regarding this particular stock.
Dragoneer Investment Group, LLC (Trades, Portfolio): A Profile
Dragoneer Investment Group, LLC (Trades, Portfolio) is a well-regarded investment firm headquartered in San Francisco, California. The firm is known for its focus on the technology and consumer cyclical sectors. With an equity portfolio valued at $5.73 billion, Dragoneer Investment Group, LLC (Trades, Portfolio)'s top holdings include companies such as Atlassian Corp (TEAM, Financial) and PDD Holdings Inc (PDD, Financial). The firm's investment philosophy emphasizes long-term growth and value creation, often targeting innovative companies with strong market positions.
ZoomInfo Technologies Inc: Company Overview
ZoomInfo Technologies Inc, based in the USA, offers a cloud-based go-to-market intelligence platform designed for sales and marketing teams. The company went public on June 4, 2020, and has since established itself as a key player in providing comprehensive and high-quality intelligence and analytics. With a market capitalization of $3.52 billion, ZoomInfo primarily generates its revenue from the United States, serving a wide range of industries with its data-driven solutions.
Financial Metrics and Valuation of ZoomInfo
ZoomInfo's current stock price stands at $10.24, with a price-to-earnings (PE) ratio of 341.33, suggesting a potential overvaluation. The GF Valuation indicates that the stock is a "Possible Value Trap," with a GF Value of $29.16 and a price-to-GF Value ratio of 0.35. These metrics highlight the need for investors to exercise caution and conduct thorough due diligence before making investment decisions in ZoomInfo.
Performance and Growth Indicators
Since the transaction, ZoomInfo's stock has experienced a -2.57% price change, and a -74.4% change since its IPO. Despite these declines, the company has demonstrated strong EBITDA growth of 36.80% over three years. However, the GF Score of 61/100 indicates poor future performance potential, suggesting that investors should carefully consider the company's growth prospects and market conditions.
Other Gurus Holding ZoomInfo
In addition to Dragoneer Investment Group, LLC (Trades, Portfolio), other notable investors in ZoomInfo include Joel Greenblatt (Trades, Portfolio) and Jefferies Group (Trades, Portfolio). Hotchkis & Wiley Capital Management LLC holds the largest share percentage among gurus, reflecting a diverse range of investment strategies and perspectives on the company's potential.
Implications of the Transaction
The significant reduction by Dragoneer Investment Group, LLC (Trades, Portfolio) may reflect concerns about ZoomInfo's valuation and future growth prospects. Investors should consider the firm's investment philosophy and the stock's financial metrics when evaluating potential investment opportunities. The transaction's impact on Dragoneer's portfolio is notable, as it reduces the firm's exposure to ZoomInfo, potentially reallocating resources to other promising investments.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
