ZoomInfo Technologies Inc. (NASDAQ:ZI) shareholders (or potential shareholders) will be happy to see that the Founder, Henry Schuck, recently bought a whopping US$5.0m worth of stock, at a price of US$10.25. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 3.3%.

View our latest analysis for ZoomInfo Technologies

ZoomInfo Technologies Insider Transactions Over The Last Year

In fact, the recent purchase by Founder Henry Schuck was not their only acquisition of ZoomInfo Technologies shares this year. They previously made an even bigger purchase of US$13m worth of shares at a price of US$8.49 per share. Even though the purchase was made at a significantly lower price than the recent price (US$10.62), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Henry Schuck bought 1.99m shares over the last 12 months at an average price of US$8.93. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ZoomInfo Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does ZoomInfo Technologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. ZoomInfo Technologies insiders own 4.0% of the company, currently worth about US$137m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The ZoomInfo Technologies Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about ZoomInfo Technologies. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for ZoomInfo Technologies that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.