Monterubello, Ermenegildo Zegna Group’s Controlling Shareholder, Purchased 913,000 Shares and Intends to Acquire Additional 2 Million Shares

Rhea-AI Summary

Monterubello, the controlling shareholder of Ermenegildo Zegna Group (NYSE:ZGN), has purchased 913,000 shares and plans to acquire an additional 2 million shares in the coming weeks. The company, owned by the Zegna family, currently holds 60% of ZGN's 252,416,479 outstanding ordinary shares as of October 31, 2024. Chairman and CEO Ermenegildo 'Gildo' Zegna stated that the family believes the current stock valuation doesn't reflect the company's true potential, citing market volatilities and uncertainty.

Positive

• Significant insider buying shows management's confidence in company's value
• Controlling shareholder increasing stake demonstrates long-term commitment
• Management believes stock is undervalued relative to potential

Negative

• Current market volatility and uncertainty affecting stock performance

Insights

Financial Analyst

The insider buying activity from Monterubello represents a significant vote of confidence in Zegna's future. The purchase of 913,000 shares with intentions to acquire 2 million more signals strong bullish sentiment from the controlling family. With Monterubello already holding 60% of outstanding shares, this additional investment demonstrates the family's commitment to increasing their stake despite market volatility.

The timing of this purchase is particularly noteworthy as it comes during a period of market uncertainty. The Zegna family's assessment that the stock is undervalued compared to its potential suggests they see significant upside from current levels. This type of insider buying, especially from controlling shareholders, often serves as a positive indicator for other investors, as insiders typically have the most comprehensive understanding of a company's prospects.

MILAN--(BUSINESS WIRE)-- Ermenegildo Zegna N.V. (NYSE:ZGN) (the “Company” and, together with its consolidated subsidiaries, the “Ermenegildo Zegna Group” or the “Group”) was informed today that Monterubello s.s. (“Monterubello”), as of November 11, 2024, purchased 913,000 ZGN shares in the market and that it intends to buy a further two million ZGN shares in the market in the coming weeks.

“Our family firmly believes that the purchase of additional shares in the Ermenegildo Zegna Group represents a very strong investment,” said Ermenegildo “Gildo” Zegna, Chairman of Monterubello and Chairman and CEO of the Ermenegildo Zegna Group. “Given market volatilities and uncertainty, the Zegna family believes that the Group’s current stock valuation does not reflect its real potential.”

Monterubello is owned by members of the Zegna family and it is the controlling shareholder of the Group through its 60% holding of the Company’s 252,416,479 million ordinary shares outstanding at October 31, 2024.

About Ermenegildo Zegna Group

Founded in 1910 in Trivero, Italy, the Ermenegildo Zegna Group (NYSE:ZGN) is a global luxury company with a leading position in the high-end menswear business. Through its three complementary brands, the Group reaches a wide range of communities and market segments across the high-end fashion industry, from ZEGNA’s timeless luxury to the modern tailoring of Thom Browne, to luxury glamour with TOM FORD FASHION. The Ermenegildo Zegna Group is internationally recognized for its unique Filiera, owned and controlled by the Group, which is made up of the finest Italian textile producers fully integrated with unique luxury manufacturing capabilities, to ensure superior excellence, quality and innovation capacity. The Ermenegildo Zegna Group has more than 7,000 employees and recorded revenues of €1.9 billion in 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112348304/en/

Paola Durante, Chief of External Relations

Alice Poggioli, Investor Relations Director

Clementina Tito, Head of Corporate Communication

ir@zegna.com / corporatepress@zegna.com

Source: Zegna Group

FAQ

How many ZGN shares did Monterubello purchase on November 11, 2024?

Monterubello purchased 913,000 ZGN shares on November 11, 2024.

How many additional ZGN shares does Monterubello plan to buy?

Monterubello intends to buy an additional 2 million ZGN shares in the coming weeks.

What percentage of Ermenegildo Zegna Group shares does Monterubello currently control?

Monterubello controls 60% of the company's 252,416,479 million ordinary shares outstanding as of October 31, 2024.

Why is Monterubello purchasing additional ZGN shares?

The Zegna family believes the Group's current stock valuation does not reflect its real potential, considering it a strong investment opportunity.