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

Zynga (NASDAQ:ZNGA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a 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. “

Other research analysts have also issued reports about the stock. KeyCorp reissued a “hold” rating on shares of Zynga in a research note on Tuesday, October 17th. Jefferies Group reissued a “buy” rating and issued a $5.00 target price on shares of Zynga in a research note on Sunday. BidaskClub downgraded shares of Zynga from a “sell” rating to a “strong sell” rating in a report on Wednesday, January 31st. Consumer Edge initiated coverage on shares of Zynga in a report on Wednesday, January 3rd. They set an “overweight” rating and a $4.50 price target for the company. Finally, Credit Suisse Group raised their price target on shares of Zynga from $3.80 to $4.00 and gave the stock an “underperform” rating in a report on Thursday, February 8th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and nine have assigned a buy rating to the company’s stock. Zynga has an average rating of “Hold” and a consensus price target of $4.19.

Zynga (NASDAQ ZNGA) traded up $0.11 on Tuesday, reaching $3.42. 26,513,500 shares of the company’s stock were exchanged, compared to its average volume of 16,075,150. Zynga has a twelve month low of $2.55 and a twelve month high of $4.34. The stock has a market cap of $2,980.00, a price-to-earnings ratio of 114.67, a price-to-earnings-growth ratio of 2.59 and a beta of 0.51.

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

In related news, Director Ellen F. Siminoff sold 12,000 shares of Zynga stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $3.74, for a total value of $44,880.00. Following the completion of the sale, the director now owns 247,900 shares in the company, valued at approximately $927,146. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Matthew S. Bromberg sold 50,000 shares of Zynga stock in a transaction that occurred 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 completion of the sale, the chief operating officer now owns 294,206 shares of the company’s stock, valued at approximately $1,162,113.70. The disclosure for this sale can be found here. Insiders sold a total of 256,000 shares of company stock valued at $1,007,560 in the last quarter. 12.43% of the stock is owned by insiders.

A number of institutional investors have recently bought and sold shares of ZNGA. Wells Fargo & Company MN increased its holdings in Zynga by 82.9% in the 2nd quarter. Wells Fargo & Company MN now owns 376,003 shares of the company’s stock valued at $1,369,000 after purchasing an additional 170,416 shares during the last quarter. PNC Financial Services Group Inc. boosted its position in Zynga by 4.5% in the 2nd quarter. PNC Financial Services Group Inc. now owns 75,150 shares of the company’s stock valued at $274,000 after buying an additional 3,261 shares during the period. GSA Capital Partners LLP boosted its position in Zynga by 93.0% in the 2nd quarter. GSA Capital Partners LLP now owns 67,684 shares of the company’s stock valued at $246,000 after buying an additional 32,612 shares during the period. Northern Trust Corp boosted its position in Zynga by 8.1% in the 2nd quarter. Northern Trust Corp now owns 4,667,868 shares of the company’s stock valued at $16,992,000 after buying an additional 349,093 shares during the period. Finally, FMR LLC purchased a new position in Zynga in the 2nd quarter valued at approximately $8,920,000. Hedge funds and other institutional investors own 70.86% of the company’s stock.

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About Zynga

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.

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