Bargain hunting: Zip (ASX:Z1P) co-founders snap up $1.5 million of shares

Zip's co-founders have been backing up the truck…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Zip share price has fallen heavily in 2022.
  • This has allowed its co-founders to top up their holdings.
  • They have just bought $1.5 million worth of Zip shares.

The Zip Co Ltd (ASX: Z1P) share price has taken another tumble on Monday.

During morning trade, the buy now pay later (BNPL) provider's shares dropped almost 6% to $1.62.

When the Zip share price hit that level, it was down approximately 62% since the start of the year.

Is this a buying opportunity?

While there have clearly been far more sellers than buyers recently, it is worth noting that a couple of notable people have been doing their bit to support the buy side over the last couple of trading sessions.

According to a release this morning, Zip's co-founders have taken advantage of recent weakness in the Zip share price to top up their already sizeable holdings.

The announcement reveals that co-founders Larry Diamond and Peter Gray purchased approximately $1.5 million of Zip shares between 4 March and 7 March. While it is unclear whether this is in total or if they have each bought $1.5 million worth of shares, what is clear is that that both remain positive on the company's future.

The company commented: "While market factors and external conditions have impacted the fintech and broader technology sector in recent months, the co-founders continue to believe that the market opportunity to deliver transparent, fair, and innovative financial products remains significant. The founders remain committed to the successful execution of Zip's strategy and in delivering long-term value creation for all shareholders."

In addition, the release highlights that a number of other non-executive directors, including chair Diane Smith-Gander, also purchased Zip shares at the end of last week.

Is the Zip share price in the buy zone?

Opinion remains largely divided on the future direction of the Zip share price.

The team at Morgans, for example, has an add rating and $3.94 price target on its shares, which implies more than 100% upside.

Whereas the team at UBS slapped a sell rating and lowly $1.00 price target on its shares last week.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

A businessman stacks building blocks.
Technology Shares

Why is the Block share price rocketing 10% today?

Brokers continue to be bullish.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
BNPL shares

Is this why the Zip share price keeps breaking records?

Zip shareholders have been enjoying a record breaking year. Is this why?

Read more »

A cool dude looks back at the camera while ziplining above the treetops.
BNPL shares

Why is the Zip share price on a rollercoaster today?

Zip shares are now up an eye-watering 670% in a year.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
BNPL shares

Owners of Zip shares are projected to start receiving dividends in the next few years

An expert is forecasting that passive income could start flowing.

Read more »

woman using affirm to pay
BNPL shares

Are Zip shares a buy following the ASX 200 stock's bumper quarter?

This stock continues to impress.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
BNPL shares

Why is the Zip share price jumping 10% today?

Let's see what is getting investors excited about this buy now pay later provider today.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
BNPL shares

Here is the earnings forecast out to 2029 for Zip shares

How much could Zip’s earnings grow in the next few years?

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Technology Shares

Why this ASX 200 tech stock is 'just too cheap'

Investors are significantly undervaluing this ASX 200 tech stock, according to a leading fund manager.

Read more »