Zynga Inc Shares Witnessing Drop In Short Interest

0
Zynga Inc Shares Witnessing Drop In Short Interest

Zynga Inc (NASDAQ:ZNGA) shares saw a declining short interest in May. As of May 15, the total short interest was around 63,269,401 shares, a decline of 2.3% from the April 30th total of 64,726,464, as per the report of Analyst Ratings Network.com. At least 9.0% of the total outstanding shares are short sold.

Bold traders rewarded

Zynga Inc (NASDAQ:ZNGA) stock reached a high of $15.91 in March 2012, and then declined approximately 87% to $2.08 per share by November. At present, the shares are trading somewhere around $3.30, down around 12% for the year to date.

These Are John Buckingham’s Stock Picks For 2021

John Buckingham Stock PicksThe economy remains in distress, although there are signs of recovery underway. John Buckingham of Kovitz, editor of The Prudent Speculator newsletter, has found that value stocks typically outperform coming out of economic downturns. Thus, he argues that this is an excellent time to be a value investor. Q4 2020 hedge fund letters, conferences and Read More


However, bold short traders reaped a 181% return as of March 2014 betting on declining  prices, according to The Street. Zynga Inc (NASDAQ:ZNGA) eventually returned to as high as $5.89 from bargain hunting, short covering and optimism in July 2013 along with a new  management team headed by Don Mattrick.

Recently, several analysts have assigned ratings to the stock. Piper Jaffray analysts have reduced their price target on Zynga shares from $5.00 to $4.50 in a research note published on Thursday, May 22nd. Benchmark Co. analysts have increased their price target on the shares from $3.46 to $3.52 in a research note to investors on Thursday, April 24th. Barclays increased its price target on the shares from $4.50 to $5.00 in a research note to investors on Thursday, April 24th, and assigned an Equal Weight rating to the stock.

Overall, Zynga Inc (NASDAQ:ZNGA) has an average rating of Hold and an average target price of $4.53.

Some optimism on Zynga

The game maker has underperformed on the basis of change in net income from the same quarter a year ago compared to the S&P 500 and the software industry. The net income has declined by 1580.3% compared to the same quarter one year ago, declining from $4.13 million to $61.18 million. Net operating cash flow has declined to -$24.25 million or 191.68% compared to the same quarter last year. Compared to the industry average, the firm’s growth rate is significantly lower.

Zynga Inc (NASDAQ:ZNGA) is making some positive moves on the business front, but shares are still near 52-week lows. However, any improvement in the business prospects of a heavily shorted company like Zynga hould increase the share price. Sell side analysts suggest that the company will post earnings of around $0.02 per share this year and $0.06 per share next year on revenue growth of 12.2% and 20.20% respectively.

No posts to display