Zacks Investment Research Downgrades Zynga (ZNGA) to Sell

Zynga (NASDAQ:ZNGA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

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. “

Several other equities analysts have also recently issued reports on ZNGA. BidaskClub upgraded shares of Zynga from a “strong sell” rating to a “sell” rating in a research report on Tuesday, February 6th. Credit Suisse Group upped their price target on shares of Zynga from $3.80 to $4.00 and gave the company an “underperform” rating in a research report on Thursday, February 8th. Jefferies Group restated a “buy” rating and issued a $5.00 price target on shares of Zynga in a research report on Sunday. Wedbush set a $6.00 price target on shares of Zynga and gave the company a “buy” rating in a research report on Thursday, February 8th. Finally, KeyCorp reiterated a “hold” rating on shares of Zynga in a research report on Tuesday, October 17th. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and nine have assigned a buy rating to the company’s stock. Zynga presently has an average rating of “Hold” and an average price target of $4.19.

Zynga (NASDAQ:ZNGA) opened at $3.49 on Tuesday. Zynga has a 12-month low of $2.55 and a 12-month high of $4.34. The stock has a market cap of $3,040.00, a P/E ratio of 116.33, a price-to-earnings-growth ratio of 3.14 and a beta of 0.51.

Zynga (NASDAQ:ZNGA) last announced its quarterly earnings results on Wednesday, February 7th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.03 by ($0.02). Zynga had a net margin of 3.09% and a return on equity of 1.66%. The business had revenue of $233.30 million during the quarter, compared to analyst estimates of $218.64 million. During the same quarter last year, the company posted ($0.04) earnings per share. The company’s revenue was up 22.5% compared to the same quarter last year. equities research analysts forecast that Zynga will post 0.05 EPS for the current year.

In related news, COO Matthew S. Bromberg sold 50,000 shares of the stock in a transaction on Wednesday, December 27th. The shares were sold at an average price of $3.95, for a total transaction of $197,500.00. Following the transaction, the chief operating officer now directly owns 294,206 shares of the company’s stock, valued at $1,162,113.70. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Ellen F. Siminoff sold 12,000 shares of the stock in a transaction on Wednesday, January 24th. The stock was sold at an average price of $3.74, for a total transaction of $44,880.00. Following the transaction, the director now directly owns 247,900 shares in the company, valued at $927,146. The disclosure for this sale can be found here. Over the last three months, insiders have sold 256,000 shares of company stock worth $1,007,560. 12.43% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of ZNGA. Wells Fargo & Company MN boosted its stake in Zynga by 82.9% during the second quarter. Wells Fargo & Company MN now owns 376,003 shares of the company’s stock worth $1,369,000 after acquiring an additional 170,416 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in Zynga by 4.5% during the second quarter. PNC Financial Services Group Inc. now owns 75,150 shares of the company’s stock worth $274,000 after acquiring an additional 3,261 shares in the last quarter. GSA Capital Partners LLP boosted its stake in Zynga by 93.0% during the second quarter. GSA Capital Partners LLP now owns 67,684 shares of the company’s stock worth $246,000 after acquiring an additional 32,612 shares in the last quarter. Northern Trust Corp boosted its stake in Zynga by 8.1% during the second quarter. Northern Trust Corp now owns 4,667,868 shares of the company’s stock worth $16,992,000 after acquiring an additional 349,093 shares in the last quarter. Finally, FMR LLC bought a new position in Zynga during the second quarter worth $8,920,000. 70.86% of the stock is currently owned by institutional investors and hedge funds.

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Zynga Company Profile

Zynga Inc is a provider of social game services. The Company develops, markets and operates social games as live services played on mobile platforms, such as iPhone Operating System (iOS) operating system and Android operating system and social networking sites, such as Facebook. The Company has developed a range of social games, including games in its Slots, Words With Friends, Zynga Poker and FarmVille franchises.

Analyst Recommendations for Zynga (NASDAQ:ZNGA)

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