Cramer Rosenthal McGlynn has significantly reduced its stake in ZoomInfo Technologies, selling 2,427,818 shares valued at approximately $17.85 million, according to an SEC filing dated May 15, 2026. This divestment comes as the firm’s total position in ZoomInfo has fallen by $28.42 million, reflecting both the sale and adverse market price movements. The stock has struggled, trading at $3.90, down over 60% in the past year, while the S&P 500 has gained about 25%.
This move highlights ongoing challenges for software stocks, particularly for ZoomInfo, which reported only a 1.5% year-over-year revenue increase to $310.2 million. Despite generating strong operating cash flow and engaging in share repurchases, the company faces uneven customer growth, with a decline in high-value contracts and a net revenue retention rate of 90%.
For investors, the key takeaway is the need for ZoomInfo to demonstrate a return to robust growth, particularly through its AI-driven sales automation solutions, to regain market confidence and justify its valuation amidst a competitive landscape.
Source: fool.com