ZoomInfo Insider Sell‑Off Signals Uncertainty as Shares Slide 38%

Insider Selling on a Falling Stock: What Investors Should Note

ZoomInfo Technologies Inc. (ZM) experienced a notable sell‑off by HSKB Funds II, LLC on February 1, 2026. The fund disposed of 15,071 shares at $0.00 each—an arrangement linked to an employee distribution rather than a market sale. The transaction occurred against a backdrop of a 0.11 % decline in the share price and a 20.64 % drop over the past week, with the stock trading at $7.81, roughly 62 % of its 52‑week high. While the sale represents only a small fraction of the company’s $2.5 billion market capitalization, its timing—amid heightened social‑media buzz (391 % intensity) and neutral sentiment—raises questions about investor confidence in ZoomInfo’s near‑term prospects.

Market Dynamics

• Price Trajectory: ZoomInfo’s share price has fallen from a 52‑week high of $12.63 to its current level of $7.81, a decline of approximately 38 %.
• Liquidity Profile: The recent insider activity includes a mix of purchases and sales by senior executives. The CFO, Michael Graham, executed three buy orders totaling 5,010 shares (priced at $0.00 each) and four sell orders totaling 4,420 shares (priced at $8.05 each).
• Institutional Flow: HSKB Funds II, LLC has a history of liquidating large blocks of ZoomInfo shares throughout 2025 (e.g., 23,749 shares in April, 10,308 in October, and 15,469 in November). The February sale continues this pattern of opportunistic selling in a down‑trending environment.

Competitive Positioning

ZoomInfo operates within the competitive business‑to‑business (B2B) data and sales acceleration sector, contending with firms such as DiscoverOrg, Clearbit, and LinkedIn Sales Solutions. Key competitive metrics include:

• Data Coverage: ZoomInfo claims a database of over 30 million verified contacts, a figure that remains comparable to its peers.
• Product Differentiation: The company’s Intent and Account‑Based Marketing (ABM) capabilities are often highlighted as a differentiator; however, competitors are rapidly enhancing similar features.
• Client Retention: Recent earnings reports indicate a churn rate of 5.2 %, slightly above the industry average of 4.8 %. This suggests potential erosion in long‑term customer loyalty.

Economic Factors

• Valuation Multiples: ZoomInfo trades at a P/E ratio of 25, below the sector average of 28. The stock’s price, however, is significantly below its 52‑week high, implying a potential discount if the company can stabilize growth.
• Macro‑Environment: The broader technology sector has experienced increased volatility due to tightening monetary policy and supply‑chain constraints. This has pressured valuations across the industry, affecting both growth and profitability expectations.
• Regulatory Landscape: Data privacy regulations (e.g., CCPA, GDPR) continue to shape the competitive landscape, potentially increasing compliance costs for ZoomInfo and its rivals.

Investor Takeaway

The interplay between the downward price trend, active insider transactions, and institutional sell‑offs suggests a period of uncertainty for ZoomInfo. While the CFO’s buying spree may signal internal confidence, the simultaneous sales of restricted and phantom units could reflect liquidity needs or hedging against further downside. Portfolio managers should:

1. Monitor Share Flow: Track subsequent insider purchases and sales, as well as HSKB’s ongoing trading activity, to gauge sentiment.
2. Assess Valuation: Compare ZoomInfo’s current valuation multiples against its historical averages and peer group to identify potential discount opportunities.
3. Track Earnings Guidance: Await forthcoming earnings releases for clarity on growth prospects and potential strategic pivots.
4. Consider Macro‑Risks: Evaluate how broader economic conditions may influence both the company’s cost structure and revenue streams.

Until ZoomInfo can demonstrate clearer earnings growth or a decisive strategic shift, a cautious positioning strategy focusing on valuation multiples and share‑flow dynamics remains prudent.

Transaction Summary (February 1, 2026)