Do Zynga Inc. (NASDAQ: ZNGA) Fit In A Value Investing Philosophy?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Zynga Inc. (NASDAQ:ZNGA). The institutional investor has increased its shareholding in the Communication Services company by 0.87% to 85.5 million shares with purchase of 0.74 million shares. This fresh investment now brings its stake to 7.97% valued currently at $840.46 million. In addition, Artisan Partners LP raised its holdings by 5.73 million to 64.41 million shares. And T. Rowe Price Associates, Inc. (I.. has lifted its position by 100.35% or 23.2 million shares – to 46.32 million shares.

    With over 18.5 million Zynga Inc. (ZNGA) shares trading Monday and a closing price of $9.06 on the day, the dollar volume was approximately $167.6 million. The shares have shown a negative weekly performance of -1.74% and its price on 08/31/20 lost nearly 0.00%. Currently, there are 1.08B common shares owned by the public and among those 1.00B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for ZNGA have a consensus price objective of $11.46. The analysts have set the share’s price value over the next 12 months at a high of $13.25 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Zynga Inc. stock is 2.10 for the next 12 months. The average price target is 21.96% above its last price level and an upside to the estimated low will see the stock lose -13.25% over that period. But an upside of 31.62% will see the stock hit the forecast high price target while mean target price for the stock is $11.55.

    Insiders at the company have transacted a total of 278 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 129 of these insider trades were purchases, accounting for 8,277,449 shares. Insider sales of the common stock occurred on 149 occasions, with total insider shares sold totaling 6,850,825 shares.

    The top 3 mutual fund holders in Zynga Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Artisan Mid Cap Fund. Vanguard Total Stock Market Index owns 24.44 million shares of the company’s stock, all valued at over $240.23 million. The company sold 89824.0 shares recently to bring their total holdings to about 2.28% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.16 million shares to see its total holdings shrink to 21.4 million shares valued at over $210.31 million and representing 1.99% of the shares outstanding. Artisan Mid Cap Fund bought 1.02 million shares to bring its total holdings to over 18.88 million shares at a value of $185.56 million. Artisan Mid Cap Fund now owns shares totaling to 1.76% of the shares outstanding.

    Shares of Zynga Inc. (NASDAQ: ZNGA) opened at $9.06, unchanged from a prior closing price of $9.06. However, the script later closed the day at $9.06, down 0.00%. The company’s stock has a 5-day price change of -1.74% and -5.53% over the past three months. ZNGA shares are trading 48.04% year to date (YTD), with the 12-month market performance up to 58.67% higher. It has a 12-month low price of $5.53 and touched a high of $10.69 over the same period. Currently, 18.5 million shares have been traded, compared to an average intraday trading volume of 22.19 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.99%, -5.54%, and 18.19% respectively.

    Institutional ownership of Zynga Inc. (NASDAQ: ZNGA) shares accounts for 71.70% of the company’s 1.08B shares outstanding. Mutual fund holders own 36.34%, while other institutional holders and individual stakeholders account for 9.36% and 35.48% respectively.

    It has a market capitalization of $9.67B and a beta (3y monthly) value of 0.29. The earnings-per-share (ttm) stands at -$0.03. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.63% over the week and 3.22% over the month.

    Analysts forecast that Zynga Inc. (ZNGA) will achieve an EPS of $0.09 for the current quarter, $0.09 for the next quarter and $0.43 for 2021. The lowest estimate earnings-per-share for the quarter is $0.08 while analysts give the company a high EPS estimate of $0.12. Comparatively, EPS for the current quarter was $0.05 a year ago. Earnings per share for the fiscal year are expected to increase by 147.60%, and 22.64% over the next financial year. EPS should grow at an annualized rate of 16.76% over the next five years, compared to 16.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Zynga Inc. (ZNGA) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 3 of the 20 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the ZNGA, a number of firms have released research notes about the stock. Berenberg stated their Hold rating for the stock in a research note on August 11, 2020, with the firm’s price target at $10.50. Barclays coverage for the Zynga Inc. (ZNGA) stock in a research note released on June 09, 2020 offered a Overweight rating with a price target of $12. BofA/Merrill was of a view on April 22, 2020 that the stock is Underperform, while Berenberg gave the stock Buy rating on April 16, 2020, issuing a price target of $8.50. Wells Fargo on their part issued Equal Weight rating on April 07, 2020.


    Please enter your comment!
    Please enter your name here