Wall Street Analysts Are Downgrading These 5 Stocks

04. ZoomInfo Technologies Inc. (NASDAQ:ZI)

Number of Hedge Fund Holders: 40

After disappointing Q2 results, Deutsche Bank analysts on August 1 downgraded ZoomInfo Technologies Inc. (NASDAQ:ZI) stock from Buy to Hold and decreased the price target by $11 to $20 per share. The analysts expressed concerns about the company’s deteriorating tech customer vertical, management’s visibility issues, and potential downside risks associated with the stock’s valuation.

ZoomInfo Technologies Inc. (NASDAQ:ZI) shares dropped by around 20% in early Tuesday trading due to the company’s weaker-than-expected revenue guidance for the third quarter. The cloud-based sales and marketing platform maker reported adjusted earnings of 26 cents per share and revenue of $308.6 million, a 16% increase. Analysts had predicted earnings of 23 cents per share and revenue of $310.94 million. The stock fell 19% in after-hours trading and has declined about 15% this year.

ZoomInfo Technologies Inc. (NASDAQ:ZI) anticipates third-quarter adjusted earnings per share between 24 cents and 25 cents, with revenue ranging from $309 million to $312 million—below the consensus estimate of $325.7 million. For the full year, the company projects adjusted earnings per share of 99 cents to $1 and revenue of $1.225 billion to $1.235 billion, revising its prior guidance downward. The company’s board has also approved a $500 million share repurchase.