We recently published a list of 10 Mid-Cap Stocks Insiders Are Buying Recently. In this article, we are going to take a look at where Zeta Global Holdings Corp. (NYSE:ZETA) stands against other mid-cap stocks insiders are buying recently.
Why is it important to keep track of insider trading activity? Insiders, meaning people in high positions, such as executives and directors, have valuable insights into the company’s strategic moves, plans and initiatives. When, for example, a CEO invests their own capital in company stocks, it can indicate strong confidence in the company’s future results.
It is important to note that behind insider selling can be various other motives, that’s why insider trading activity should be assessed within the broader context of the company’s fundamentals, industry trends, and overall market conditions. Many insider purchases don’t necessarily mean the company will be successful. That’s why due diligence before any investment is of crucial importance. Investors should also take into account and carefully analyze underlying reasons for insider transactions. However, insider trading activity in combination with other relevant factors can offer precious insights into a company’s capabilities, helping investors make more informed investment decisions.
To come up with the 10 mid-cap stocks insiders are buying recently, we only considered stocks with a market capitalization of between $2 to $10 billion. We first used Insider Monkey’s insider trading stock screener and looked for stocks with at least two insiders buying over the last three months.
With each stock we note the number of recent insider purchases and the company’s current market capitalization. But why is it important to follow insider activity? Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A marketing manager looking at the data dashboard of a marketing automation software showing successful campaign results.
Zeta Global Holdings Corp. (NYSE:ZETA)
Number of Insiders Recently Buying: 7
Market Capitalization: $4.267B
Zeta Global Holdings Corp. (NYSE:ZETA) is an AI-powered marketing cloud company that offers data-driven solutions to help enterprises acquire, grow, and retain customers more cost-effectively. In November, seven insiders, including the CEO, acquired approximately $3.20 million worth of the company’s shares at a price of around $18.92 per share. Zeta Global Holdings (NYSE:ZETA) is currently trading just below that average with a price of $18.19. Over the last six months, its shares lost 17.13%.
The stock plummeted 50% in November, due to a report by the short seller Culper Research, and even though the company refuted the claims and was cleared in a forensic review, the stock is yet to recover. In December, the company announced that its Zeta Marketing Platform usage surged 108% year-over-year.
In January, an analyst from DA Davidson chose Zeta Global Holdings (NYSE:ZETA) as their top pick in the marketing software space. In addition to being one of the 10 mid-cap stock insiders are buying recently, this stock is also one of the 12 Stocks That Will Double in 2025.
Over the past year, the stock rose 88%, outperforming the broader market index.
Overall, ZETA ranks 2nd on our list of mid-cap stocks insiders are buying recently. While we acknowledge the potential of ZETA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZETA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
