Zynga Inc (NASDAQ:ZNGA) shares saw an increase in short interest as on August 15th totaling to 53,752,239 shares, an increase of 15.9% from the July 31st total of 46,370,379 shares. On the basis of the average daily volume of 26,750,191 shares, the short-interest ratio for the company is 2 days, and around 7.4% of the company’s stocks are sold short.
Insider selling in August
Director of Zynga William B. Gordon shed 500,000 shares in a transaction dated on August 19th. Gordon sold shares at an average price of $3.01, for a total value of $1,505,000.00.
Another insider, Shah Devang, General Counsel offloaded around 8,000 shares of Zynga at a price of $3 per share in two different transactions on Aug. 15 and Aug. 18. Post selling, Devang had 137,608 shares left under direct ownership.
What analysts believe for Zynga?
Earlier this month, Goldman Sachs analysts lowered price target from $4 to $3 per share and maintained a Neutral rating on the stock. Analysts noted that the recent bookings of $175 million were way below $185 million estimate.
Goldman analysts believe that the company is still capable of regaining the lost ground. Additionally, it can ramp up its growth through restructuring plan by focusing on sequential bookings, EBITDA, audience and pricing growth.
Apart from Goldman Sachs other analysts also gave ratings to the stock. Wedbush analysts have dropped their price target from $7.00 to $6.00 in a research note on, August 8th. Benchmark Co analysts, also, lowered their price target from $3.08 to $2.83 in a research note on August 8th. Separately, analysts at BMO Capital Markets reduced their price target on Zynga from $4.50 to $3.25 in a research note on August 8th. Zynga Inc (NASDAQ:ZNGA) currently has an average rating of Hold and a consensus target price of $3.85.
According to PTT Research CEO and lead analyst Mark Gomes, Zynga is unable to maintain its profit like other gaming companies such as Glu Mobile, because it shells out heavily on making games rather than bringing fresh concept.
Gomes said, “What was kind of most distressing recently about Zynga is that their saving grace is supposed to be Farmville 2.”
Zynga Inc (NASDAQ:ZNGA) is expected to release its third-quarter earnings on October 24th.