Zeta Global Holdings' (NYSE: ZETA) stock price decreased sharply in November because of a short report. The report alleges financial misconduct and predatory business practices that appear to be unfounded. External counsel assisted the company’s detailed response, which refuted the claims, calling them self-serving misrepresentations and speculative conjecture. The takeaway is that this marketing-focused data cloud provider is fundamentally sound and trading at a discount.
The discount in Zeta Global Holdings shares is highlighted by insider buying, which stepped in to support the market not with money but sentiment. The insiders own a substantial double-digit portion of the shares and have no reason to buy this stock other than for its value, scandal or not. Four insiders, including the CEO and CFO, bought stock, which was also significant because this was the first activity in a year, and the last was selling.
