Zynga (ZNGA) Rating Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Zynga (NASDAQ:ZNGA) from a buy rating to a hold rating in a research note published on Tuesday morning.

According to Zacks, “Zynga Inc. is the world’s largest social game developer with users playing their games which include CityVille, FarmVille, FrontierVille, Words With Friends, Mafia Wars, Zynga Poker, Cafe World, and Treasure Isle. Zynga Inc. games are available on a number of global platforms including Facebook, MySpace, Yahoo, the iPad, the iPhone and Android devices. They operate their games as live services, by which they mean that they continue to support and update games after launch and gather daily, metrics-based player feedback that enable them to continually enhance their games by adding new content and features. All of their games are free to play, and they generate revenue through the in-game sale of virtual goods and advertising. “

A number of other brokerages have also weighed in on ZNGA. Stifel Nicolaus assumed coverage on Zynga in a research note on Thursday, September 27th. They set a buy rating and a $5.00 target price on the stock. Jefferies Financial Group reiterated a buy rating and set a $5.25 target price on shares of Zynga in a research note on Thursday, October 11th. Barclays assumed coverage on Zynga in a research note on Thursday, August 9th. They set an underweight rating and a $3.70 target price on the stock. BidaskClub lowered Zynga from a sell rating to a strong sell rating in a research note on Friday, August 17th. Finally, ValuEngine upgraded Zynga from a hold rating to a buy rating in a research note on Wednesday, October 3rd. Three equities research analysts have rated the stock with a sell rating, two have issued a hold rating and seven have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $4.82.

NASDAQ:ZNGA opened at $3.78 on Tuesday. The company has a market capitalization of $3.23 billion, a price-to-earnings ratio of 125.33, a price-to-earnings-growth ratio of 2.28 and a beta of 0.42. Zynga has a 12-month low of $3.20 and a 12-month high of $4.57.

Zynga (NASDAQ:ZNGA) last released its quarterly earnings data on Wednesday, October 31st. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.01. The firm had revenue of $233.24 million for the quarter, compared to analyst estimates of $224.54 million. Zynga had a return on equity of 1.89% and a net margin of 3.12%. The business’s revenue for the quarter was up 3.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.02 earnings per share. On average, equities research analysts forecast that Zynga will post 0.1 EPS for the current fiscal year.

In related news, Director Ellen F. Siminoff sold 12,000 shares of the stock in a transaction that occurred on Friday, August 24th. The stock was sold at an average price of $3.92, for a total transaction of $47,040.00. Following the sale, the director now owns 213,277 shares of the company’s stock, valued at $836,045.84. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Mark J. Pincus sold 437,322 shares of the stock in a transaction that occurred on Monday, October 29th. The stock was sold at an average price of $3.70, for a total value of $1,618,091.40. The disclosure for this sale can be found here. Insiders have sold 576,322 shares of company stock worth $2,177,796 in the last three months. 11.87% of the stock is currently owned by company insiders.

Hedge funds have recently modified their holdings of the business. Lourd Capital LLC acquired a new stake in shares of Zynga in the 3rd quarter valued at $109,000. Macquarie Group Ltd. acquired a new stake in shares of Zynga during the 2nd quarter valued at $117,000. Dynasty Wealth Management LLC acquired a new stake in shares of Zynga during the 2nd quarter valued at $126,000. Bank of Montreal Can boosted its holdings in shares of Zynga by 111.1% during the 3rd quarter. Bank of Montreal Can now owns 32,809 shares of the company’s stock valued at $131,000 after acquiring an additional 17,269 shares in the last quarter. Finally, Oakbrook Investments LLC raised its position in Zynga by 187.0% during the 3rd quarter. Oakbrook Investments LLC now owns 37,450 shares of the company’s stock worth $150,000 after purchasing an additional 24,400 shares during the last quarter. 74.60% of the stock is currently owned by hedge funds and other institutional investors.

About Zynga

Zynga Inc develops, markets, and operates social games as live services in the United States and internationally. The company's games are played on mobile platforms, such as iOS and Android operating systems, as well as on social networking sites, including Facebook. It also provides advertising services comprising mobile and display ads, engagement ads and offers, and branded virtual goods and sponsorships to advertising agencies and brokers; and software licensing and maintenance services related to NaturalMotion technology, as well as licenses its own brands.

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