ZipRecruiter (NYSE:ZIP) Stock Falls 5% – Should You Sell?

Shares of ZipRecruiter, Inc. (NYSE:ZIP) dropped 5% during mid-day trading on Wednesday. The company traded as low as $6.20 and last traded at $6.2620. Approximately 1,094,127 shares were traded during mid-day trading, an increase of 10% from the average daily volume of 994,146 shares. The stock had previously closed at $6.59.

Recent ZipRecruiter Headlines

Investors following ZIP have been watching these headlines:

• Positive Sentiment: Third-quarter revenue rose 8.2% year over year to $124.4 million, topping expectations. The company reported positive earnings per share of roughly $0.05–$0.06, versus analyst expectations for a loss of $0.11. ZipRecruiter Announces Third Quarter 2026 Results
• Positive Sentiment: Fourth-quarter revenue guidance of $118 million to $122 million came in above the roughly $115.8 million consensus estimate, indicating management expects growth to continue. ZipRecruiter Q3 2026 earnings call transcript
• Negative Sentiment: UBS raised its price target from $4.50 to $5.00 but maintained a neutral rating; the target is below the recent trading price and could temper optimism after the earnings-driven rally. UBS Group stock recommendations

Analyst Ratings Changes

ZIP has been the topic of several research analyst reports. Wall Street Zen cut shares of ZipRecruiter from a “strong-buy” rating to a “buy” rating in a report on Saturday. UBS Group upped their price target on shares of ZipRecruiter from $4.50 to $5.00 and gave the stock a “neutral” rating in a report on Tuesday. Weiss Ratings upgraded ZipRecruiter from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, October 27th. Finally, The Goldman Sachs Group upped their price objective on ZipRecruiter from $3.50 to $5.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. Four analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $4.33.

ZipRecruiter Trading Down 8.7%

The firm has a market cap of $494.53 million, a price-to-earnings ratio of 11.49 and a beta of 1.54. The business’s 50-day simple moving average is $4.09 and its two-hundred day simple moving average is $3.41.

ZipRecruiter (NYSE:ZIP) last released its quarterly earnings results on Monday, November 9th. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.11) by $0.17. The firm had revenue of $124.44 million for the quarter. On average, analysts forecast that ZipRecruiter, Inc. will post -0.26 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Ian Siegel sold 34,978 shares of the business’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $3.67, for a total value of $128,369.26. Following the transaction, the chief executive officer owned 218,895 shares in the company, valued at $803,344.65. The trade was a 13.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Garefis sold 7,879 shares of the business’s stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $4.56, for a total transaction of $35,928.24. Following the completion of the transaction, the executive vice president owned 202,724 shares in the company, valued at approximately $924,421.44. The trade was a 3.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 151,318 shares of company stock worth $608,431 over the last ninety days. Corporate insiders own 19.85% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Renaissance Technologies LLC boosted its position in shares of ZipRecruiter by 3.4% during the 1st quarter. Renaissance Technologies LLC now owns 1,920,900 shares of the company’s stock valued at $3,534,000 after purchasing an additional 62,900 shares in the last quarter. Varde Management L.P. grew its stake in ZipRecruiter by 6.9% during the second quarter. Varde Management L.P. now owns 371,456 shares of the company’s stock worth $1,393,000 after purchasing an additional 23,929 shares during the period. Hsbc Holdings PLC increased its holdings in ZipRecruiter by 30.6% in the fourth quarter. Hsbc Holdings PLC now owns 208,392 shares of the company’s stock worth $808,000 after purchasing an additional 48,881 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in ZipRecruiter by 7.7% in the third quarter. Russell Investments Group Ltd. now owns 155,420 shares of the company’s stock worth $546,000 after purchasing an additional 11,112 shares in the last quarter. Finally, State of Wyoming increased its holdings in ZipRecruiter by 458.9% in the third quarter. State of Wyoming now owns 123,918 shares of the company’s stock worth $435,000 after purchasing an additional 101,748 shares in the last quarter. 70.55% of the stock is owned by institutional investors and hedge funds.

About ZipRecruiter

ZipRecruiter, Inc. operates an online employment marketplace that connects businesses with job seekers. Its platform enables employers to create and distribute job postings across a broad network of online channels, while helping candidates search for available positions and apply for roles. The company uses technology and matching tools to recommend relevant candidates to employers and suitable job opportunities to job seekers. Its services are designed for businesses of various sizes, including small and midsize employers, as well as staffing firms and larger organizations.