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

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

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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.

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