Zynga Inc (ZNGA) Shares Fall 9% Ahead of Earnings

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This coming Wednesday, Zynga Inc (NASDAQ:ZNGA) is slated to report their fourth-quarter 2015 earnings. In wake of this coming announcement, the stock has taken a huge hit today in afternoon trading. With a price target of $3.37 by analysts, there is still room to the upside, if in fact the company can surprise Wall Street by reporting better than expect earnings this week. With the stock down significantly today, more than likely investors are a bit scared what Wednesday’s report may bring. If the company does infact miss analysts’ expectation, we could see the stock tumble quite far. The stock has reached a new 52-week low of $2.06 today, and this wouldn’t be the bottom shoudl they miss estimates

The stock is down 8.55% or $0.19 following the news, hitting $2.09 per share. About 24.57 million shares traded hands or 97.51% up from the average. ZNGA has declined 19.72% since July 2, 2015 and is downtrending. It has underperformed the S&P500 by 10.25%.

From a total of 3 analysts covering Zynga (NASDAQ:ZNGA) stock, 1 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $5.50 while the lowest target price is $2.70. The mean of all analyst targets is $3.37 which is 61.24% above today’s ($2.09) stock price. Zynga was the topic of 11 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Oppenheimer initiated shares on November 12 with a “Perform” rating. Bank of America maintained ZNGA stock in a recent report from August 10 with a “Underperform” rating. Finally, Morgan Stanley maintained the stock with a “Equal Weight” rating in a report they issued on an August 10.

The institutional sentiment decreased to 0.78 in Q2 2015. It’s down 0.46, from 1.24 in 2015Q2. The ratio fall, as 38 funds sold all their Zynga Inc shares they owned while 63 reduced their positions. 19 funds bought stakes while 60 increased their total positions. Institutions now own 484.45 million shares which is 10.63% less than the previous share count of 542.09 million in 2015Q2.

Brightfield Capital Management Llc holds 5.67% of its total portfolio in Zynga Inc, equating to 775,000 shares. Clearline Capital Lp owns 12.64 million shares representing 4.86% of their total US portfolio. Moreover, Zenit Asset Management Ab has 3.58% of their total portfolio invested in the company, equating to 9.00 million shares. The New York-based Contour Asset Management Llc has a total of 3.2% of their portfolio invested in the stock. Destrier Capital Management Llc, a New York-based fund reported 4.59 million shares owned.

Since March 17, 2015, the stock had 0 insider buys, and 6 sales for a total of $307,020 in net activity. Lee David J. sold 51,595 shares worth $125,438. Shah Devang sold 43,846 shares worth $107,493. Siminoff Ellen F sold 10,000 shares worth $24,846.

Zynga Inc. is a provider of social game services. The company has a market cap of $1.86 billion. The Firm develops markets and operates social games as live services played on mobile platforms, such as iOS and Android, and social networking sites, such as Facebook. It currently has negative earnings. The Company’s games are also accessible on Zynga.com.