Zynga Inc. (ZNGA): Stop Me If You’ve Heard This One Before

It has been reported that multiple insider activity took place at Zynga Inc. (ZNGA). Director PINCUS MARK J sold 1,760,605 shares for $64,319,894 in transaction occurred on 2019/03/29. After making this transaction, Director owns a direct stake of 4 shares, worth $352,000,000, as per the last closing price.

COO, Bromberg Matthew S had divested 41,500 shares for $529,862 through a trade on 2019/03/15. Following this activity, the insider holds 2 shares worth $2,903,644 as of recent close.

Vanguard Total Stock Market Index Fund revealed as top hedge fund owner in Zynga Inc. (ZNGA) with a stake of over 19.86M ZNGA shares as of September 29, with a market value of approx. $79.66M as of today. The second largest holder, Vanguard Small-Cap Index Fund, with 19.76M shares which equates to $79.26M worth of the stock. At third is Artisan Mid-Cap Fund, which stood pat with 16.5M shares, a 1.3% position in Zynga Inc., worth $66.15M. The insider holding in stood at 4.6% while institutions hold 79.4%.

Zynga Inc. (NASDAQ:ZNGA) rose 0.18% in recent trade and currently has a stock-market value of $5.08B. The shares finished at $5.48, after trading as low as $5.45 earlier in the session. It hit an intraday high Thursday at $5.54. Trading activity significantly weakened as the volume at ready counter decreased to 4,846,683 shares versus 9,998,570 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 13,364,646 shares. The stock is now 65.06% above against its bear-market low of $3.32 on November 28, 2018. It has retreated -1.28% since it’s 52-week high of $5.55 reached in April. Now the market price is up 55.24% on the year and up 39.44% YTD.

ZNGA stock’s 50 day simple moving average (SMA 50) price is $5.14 and its 200-day simple moving average (SMA 200) price is $4.25. The company’s stock currently has a total float of 920.79M shares. Its weekly volatility is hovering around 1.91% and felt 2.54% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.53. On a downside, the stock is likely to find some support, which begins at $5.44. The failure to get near-term support could push it to $5.4.

It had seen a new analyst call from Goldman, which initiated the stock at Buy on January 30. Analysts at KeyBanc Capital Mkts, shed their negative views on January 28 by lifting it fromSector Weight to Overweight. Analysts at Stephens, made their first call about the stock on January 11, recommending it is Equal-Weight. Macquarie analysts came out with bullish views on December 11 when the call was made. They think the stock is now Outperform compared to to their prior call for Neutral.

When looking at valuations, Zynga Inc. (ZNGA) has a pricey P/E of 322.35x as compared to industry average of 38.04x. Moreover, it trades for 20.68 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.95x price/book and 5.59x price/sales. Compared to others, Zynga Inc. is in a different league with regards to profitability, having net margins of 1.7%. To put some perspective around this, the industry’s average net margin is 23.47%. ZNGA’s ROE is 1%, which is also considerably worse than the industry’s ROE of 19.23%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 0.06.

Shares of ZNGA have gained 21.3% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Zynga Inc. (NASDAQ:ZNGA) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 3 quarters (25%), whereas at 5 occasion EPS met analyst expectations. ZNGA last reported earnings that exceeded expectations. The company raked in $0.05 per share, -99.81% change on the same period last year. That was better than consensus for $0.04. Revenue for the recent quarter stood at $267.27 million, up 19% on last year and above the $260.04 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $305.1 million to $338.5 million, which should be compared with $245.56 million generated last year. EPS is seen in a range of $0.03 to $0.05, against the $0.04 reported a year ago.