Zynga Inc (ZNGA) Stock Hits 52-Week Low – Can it recover?


Shares of Zynga Inc (NASDAQ:ZNGA) are down over 13 percent this morning after the company released their quarterly report. The stock has fallen to a new 52-week low, one that makes us wonder if the company can recover. Opening trading at $1.80, the stock hit as low as $1.78 which set a new low for the past 1-year period. This comes after the company reported revenue of $185.7 million, which was close to $10 million lower than the previous quarter. Diluted net income per share came in at $-0.05, lower than Wall Street’s expectations that the company would see $0.00 (break even) per share.

With the stock falling so much, it makes us wonder what the company will do in the forthcoming quarters to try and make up ground. New game releases are scheduled which should generate plenty of new revenue, but shareholders are all taking this into account with their selloff today. Further acqusitions of gaming companies will help the company move forward, but they must pick and choose carefully when making future acqusitions. Their acquisition of NaturalMotion in 2014 seems to have been a good decision, as Dawn of Titans and CSR 2 are being released soon.

2016 will prove to be a significant year for Zynga Inc (NASDAQ:ZNGA), perhaps a make-or-break year. They can recover, but they must make their future moves carefully.The stock is down 13.15% or $0.28 following the news, hitting $1.85 per share. Approximately 6.87M shares traded hands. ZNGA shares have declined 22.26% since July 8, 2015 and are currently downtrending. It has underperformed the S&P500 by 12.79%.

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 82.16% above today’s ($1.85) 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 worsened, 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 buys, and 6 selling transactions 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 $1.81 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.