Analysts at Barclays lifted target price for shares of Zynga Inc. (NASDAQ:ZNGA) but repeated their Underweight recommendation for the stock in their opinion released on November 01. The price target has been raised from $3.70 to $3.40.
In the period that ended November 15, 2018, short interest in Zynga Inc. (NASDAQ:ZNGA) stock is on the rise. The 2.4% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.4 suggests buying these shares. Between October 31 and November 15, the total number of shorted shares amounted to 58.97 million shares. That was 1,382,584 more shares than the total of 57.59 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for ZNGA at the November 15th settlement plunged to 10,800,022, as compared to 14,922,845 at the October 31st report. That brought days to cover to 5.460183, a 41.49% increase from the 3.859017 days to cover recorded at the prior short interest data release.
By watching the trading activity of corporate insiders, it will become easier to get a sense of Zynga Inc. (NASDAQ:ZNGA)’s prospects. The earliest insider trade took place on 11/26/2018. Siminoff Ellen F parted with a total of 12 thousand shares of company at average share price of $3.52. The total for the sales was set at $42.24 thousand. After this transaction, the Director account balance stood at 294.6 thousand shares. The stock grew 3.13 percent since that insider sale. On 11/15/2018, Bromberg Matthew S, COO, sold 8 thousand shares at a price per share of $3.56. This removed 28.48 thousand shares from the insider’s fortune and the stock saw a 1.97 percent rally in value since the news became public. This transaction left 478.82 thousand shares in the COO account. On 10/29/2018, Director Pincus Mark J performed a sale transaction worth $1.62 million. This sale at $3.7 each has eliminated 437.32 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.89 percent decrease since the transaction was reported. The insider now is left with 65.87 million shares remaining in the account. Siminoff Ellen F, who performs the Director job, sold 12 thousand shares for $47.16 thousand. The disposal occurred on 10/24/2018 was priced at $3.93 per share. The share price plunged -7.63 percent since the reporting date. Siminoff Ellen F now left with a stake of 292.06 thousand ZNGA stock worth $1.06 million after the insider selling.
Zynga Inc. (ZNGA) is expected to jump by 29.2 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $6-month high price target. This represents a whopping 65.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $4.88, which represents a return potential of 34.44 percent when compared to the closing price of the stock of $3.63 on Thursday, December 06. The lowest price target for the stock is $3.4 — slightly more than -6.34 percent from ZNGA’s current share price.
The shares are currently floating around the first support level of $3.53. Below this, the next support is placed in the zone of $3.43. Till the time, the ZNGA stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.05 on daily chart, which may remain a cause for concern. If the price breaks below $3.43 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.68 mark may result into a pull-back move towards $3.73 level.
ZNGA shares accumulated 0.08 points or 2.25 percent on Thursday to $3.63 with a light trade volume of 9.282 million shares. After opening the session at $3.51, the shares went as high as $3.63 and as low as $3.4791, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.15 billion and now has 866.66 million shares outstanding. Zynga Inc. (ZNGA) stock has lost -2.16 percent of market value in 21 trading days.
ZNGA stock has a trailing 3-year beta of 0.31, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.03 a share in the trailing twelve months. The stock’s value has fallen -9.25 percent year to date (YTD) against a decline of -3.71 percent in 12 month’s time. The company’s shares still trade -20.57 percent away from its 1-year high of $4.57 and 13.44 percent up from 52-week low of $3.20. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of Zynga Inc. (ZNGA) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry ZNGA operates in has an average P/E of 36.8. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 3.53 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.54. 68 percent is the gross profit margin for Zynga Inc. and operating margin sits at 1.7 percent. Along with this, the net profit margin is 3.1 percent.
ZNGA will be showing off its Q4 earnings on February 06. Analysts are forecasting revenue to climb 12.6 percent to $252M in the next fiscal quarter, while earnings are seen soaring by nearly 0 percent to $0.04 per share. History has shown that shares in Zynga Inc. have gone up on 15 different earnings reaction days and are predicted to add 0.08 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.05 per share, better than the $0.04, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $249M, in line with the $249M analysts expected. Earnings are estimated to increase by 125.8 percent this year, -1.8 percent next year and continue to increase by 30 percent annually for the next 5 years.