Zynga Inc (NASDAQ:ZNGA) will announce its financial results for the second-quarter on Thursday, August 7, 2014, after the close of the market. The leading social game developer will hold a conference call on August 7, 2014, at 2:00 p.m. Pacific Time to discuss the results.
Zynga expected to report in-line results
Michael Oslon of Piper Jaffray expects Zynga to post in-line results for the second quarter. On average, the analysts expect the social gaming company to report revenue of $190.96 million for the June quarter.
The analyst noted that the famous titles of the game maker are in the top-200 category. Also, the rankings have improved in the second quarter, which is positive for the company. As per Piper Jaffray analyst FarmVille 2 will be a significant contributor to the revenue, in the third quarter. Oslon, who suggests a “wait and see” approach for the company’s performance in the second half, reiterates Neutral rating with a price target of $4.50 on Zynga.
The analyst, further, suggests that if Zynga gives a conservative guidance for 2015 then the research firm will show some confidence in the stock. At present, Wall Street forecasted an increase of 21% in bookings for 2015 compared to Olson’s estimates of 17%.
Zynga CEO Don Mattrick offloaded 2,145,315 shares of Class A Common Stock, in an open market transaction, last week, at an average weighted price of $3.02 per share. Post transaction, Mattrick owns 1,901,113 shares worth approximately $5,741,361, as per the SEC filing. A day before the transaction, Mattrick acquired 4,046,428 shares using stock option of restricted stock units.
This was the first selling transaction of Mattrick, unlike other insiders. General Counsel and vice president of Zynga Devang Shah unloaded 5,000 shares at an average price of $3.31 per share, in May. Another insider, Mark Vranesh, Chief financial officer unloaded 60,760 shares at a price of $5.13 per share, in February.
Hedge funds have taken some action this quarter, where Andreas Halvorsen’s Viking Global, purchased 28.4 million Zynga shares, with a value of $122.3 million. David Stemerman headed Hedge Funds acquired 18.3 million shares, worth $78.7 million, accounting for 3.48% of the hedge fund’s portfolio.
At 11.15 am EDT, Zynga shares were up 0.61% to $32.20. YTD shares are up over 4%.