Are Analysts Expecting A Better 2020 For Zynga Inc. (ZNGA)?


The Vanguard Group, Inc. has recently announced that it has increased stake in Zynga Inc. (NASDAQ:ZNGA) by 0.87%. After grabbing 85.5 million shares, the institutional investor is now in possession of 0.74 million shares of the Communication Services Company. The new investment brought the stake of investor firm to 7.97% having worth around $840.46 million. Moreover, Artisan Partners LP increased its share by 5.73 million to have a control over 64.41 million shares. And T. Rowe Price Associates, Inc. (I.. raised its holdings to 23.2 million shares by acquiring 46.32 million shares or 4.32% of the stake.

Zynga Inc. (ZNGA) concluded trading on 08/27/20 at a closing price of $8.99, with 24.93 million shares of worth about $224.1 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -4.67% during that period and on Thursday the price saw a loss of about -1.75%. Currently the company’s common shares owned by public are about 1.08B shares, out of which, 1.00B shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 20 analysts are covering the ZNGA stock and their offered price forecasts bring an average price target of $11.46. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $13.25 and could fall to a lowest price of $8.00. Analysts also issued an outlook of 2.10 for the Zynga Inc. stock for next 12 months. The stock’s current price level is 22.57% above of average price target set by the analysts, while a rise to estimated low would result in loss of -12.38 for the stock. However, touching the estimated high of $13.25 would mean a gain of 32.15% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 278 times over the past 12 months. They bought 8,277,449 shares in 129 of the transactions. In 149 selling transactions, insiders dumped 6,850,825 shares.

Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Artisan Mid Cap Fund are the top 3 mutual funds which are holding stakes in Zynga Inc. Vanguard Total Stock Market Index is currently holding 24.44 million shares of worth totaling $240.23 million. The company recently came selling 89824.0 shares which brought its stake up to 2.28% of the company’s outstanding shares. Vanguard Small Cap Index Fund sold -0.16 million shares, after which its hold over company’s outstanding shares shrunk to 1.99%, leaving 21.4 million shares with the mutual fund that have a worth of about $210.31 million. Artisan Mid Cap Fund, after buying 18.88 million shares, have now control over 1.76% of the stake in the company. It holds 1.02 million shares of worth $185.56 million.

Zynga Inc. (NASDAQ: ZNGA) started trading at $9.16, above $0.01 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $8.99, or with a loss of -1.75%. Stock saw a price change of -4.67% in past 5 days and over the past one month there was a price change of -7.22%. Year-to-date (YTD), ZNGA shares are showing a performance of 46.90% which increased to 56.89% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $5.53 but also hit the highest price of $10.69 during that period. While comparing its average daily trading volume of 22.26 million shares, we see that about 24.93 million changed hands on the day. The stock is currently trading -5.48% below its 20-day simple moving average (SMA20), while that difference is down -6.37% for SMA50 and it goes to 17.69% higher than SMA200.

The Vanguard Group, Inc. acquired 85.5 million shares of Zynga Inc. having value of about $840.46 million. Data submitted at the U.S SEC by The Vanguard Group, Inc. revealed that the firm now holds 0.74 million shares in the company valued at close to $6641452.4, or have control over 0.87% stake in the company. Zynga Inc. (NASDAQ: ZNGA) currently have 1.08B outstanding shares and institutions hold larger chunk of about 71.70% of that. Holding of mutual funds in the company is about 37.14% while other institutional holders and individual stake holders have control over 9.36% and 34.72% of the stake respectively.

The stock has a current market capitalization of $9.79B and its 3Y-monthly beta is at 0.34. It has posted earnings per share of -$0.03 in the same period. It has Quick Ratio of 1.80 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ZNGA, volatility over the week remained 2.51% while standing at 3.18% over the month.

Analysts are in expectations that Zynga Inc. (ZNGA) stock would likely to be making an EPS of $0.09 in the current quarter, while forecast for next quarter ESPS is $0.09 and it is $0.43 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.08 which is $0.12 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.05 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 147.60% while it is estimated to increase by 22.64% in next year. EPS is likely to grow at an annualized rate of 16.76% for next 5-years, compared to annual growth of 16.70% made by the stock over the past 5-years.

Analysts at 20 brokerage firms have issued recommendations for the Zynga Inc. (ZNGA)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.10. Out of those 20 Wall Street analysts, 13 recommended a “Buy” rating, while 3 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Berenberg on August 11, 2020 offering a Hold rating for the stock and assigned a target price of $10.50 to it. Coverage by Barclays stated Zynga Inc. (ZNGA) stock as an Overweight in their note to investors on June 09, 2020, suggesting a price target of $12 for the stock. On April 22, 2020, BofA/Merrill Downgrade their recommendations, while on April 16, 2020, Berenberg Initiated their ratings for the stock with a price target of $8.50. Stock get an Equal weight rating from Wells Fargo on April 07, 2020.


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