Zynga Inc (NASDAQ:ZNGA)’s price target has been raised by many analysts, in the last seven days, which might show that the restructuring plans by the game maker have started to bear fruit. Hinting some positive for the game maker, short interest in the company has also come down much in April.
Analysts optimistic on Zynga
Analysts at Barclay’s have raised the price target on Zynga Inc (NASDAQ:ZNGA) from $4.50 to $5.00, and now have an Equal Weight rating on the stock. Also, Goldman Sachs analysts have increased the price target on the game maker to $4.00. Separately, analysts at Canaccord Genuity have revised the price target up from $4.40 to $5.00, and presently have a Hold rating on the stock. Similarly, Benchmark Co analysts have raised the price target on Zynga from $3.46 to $3.52. Analysts at Evercore Partners have raised the price target on the social game maker from $4.50 to $5.50.
As on April 15th, total short positions in Zynga Inc (NASDAQ:ZNGA) were 48,195,864 shares, which is a decline from 58,345,435 shares, on March 31. Around 7.4% of the shares of the stock are short sold, and on the basis of the average daily volume of 35,693,506 shares, the short-interest ratio for the game maker is around 1.4 days.
Announcements made last week
Last week, Zynga Inc (NASDAQ:ZNGA) announced its first quarter earnings, and shares were up after the announcement. For the quarter, the game maker posted a net loss of $61 million, which included a 30 million restructuring charge. For the same quarter, last year, the company posted a net income $4 million, which represented a loss of 57 million. Diluted net loss for the quarter came in at $0.07 per share while revenues were down 36% year-over-year to $168 million.
Along with the earnings, Zynga Inc (NASDAQ:ZNGA), also announced about the stepping down of co-founder Mark Pincus from the operations role. The game maker revealed that Pincus will continue as the Chairman of the company.
For the second quarter, Zynga provided a revenue guidance of $140 to $160 million and a net loss of 65 to 75 million.
On Friday, Zynga shares closed down 6.21% at $4.08.