Zynga Inc. (NASDAQ:ZNGA) has a beta of 0.09. The stock’s Relative Strength Index (RSI) is 55.88, with weekly volatility at 2.19% and ATR at 0.32. The ZNGA stock’s 52-week price range has touched low of $7.77 and a $12.32 high. Its shares traded lower over the last trading session, losing -0.83% on 06/01/21. The shares fell to a low of $10.69 before closing at $10.75. Intraday shares traded counted 10.32 million, which was 30.85% higher than its 30-day average trading volume of 14.93M. ZNGA’s previous close was $10.84 while the outstanding shares total 1.08B.
Investors have identified the Electronic Gaming & Multimedia company Zynga Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $11.63 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Zynga Inc. (ZNGA) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.83 billion total, with 1.42 billion as their total liabilities.
ZNGA were able to record -165.4 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by -664.9 million. In cash movements, the company had a total of -163.7 million as operating cash flow.
Potential earnings growth for Zynga Inc. (ZNGA)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, Zynga Inc. recorded a total of 680.3 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 40.64% coming in sequential stages and their sales for the 08/04/2021 quarter increasing by 9.45%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 260.7 million trying to sell their products during the last quarter, with the result yielding a gross income of 419.6 million. This allows shareholders to hold on to 1.08B with the recently reported earning now reading -0.02 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (0.05 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.27 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ZNGA sounds very interesting.
Is the stock of ZNGA attractive?
In related news, Chief Operating Officer, Bromberg Matthew S sold 63,000 shares of the company’s stock in a transaction that recorded on May 19. The sale was performed at an average price of 10.32, for a total value of 650,160. As the sale deal closes, the Director, PINCUS MARK J now sold 468,039 shares of the company’s stock, valued at 4,839,523. Also, President of Publishing, Kim Bernard Jin sold 24,000 shares of the company’s stock in a deal that was recorded on May 17. The shares were price at an average price of 10.10 per share, with a total market value of 242,400. Following this completion of acquisition, the Director, PINCUS MARK J now holds 443,716 shares of the company’s stock, valued at 4,481,532. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
18 out of 20 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Zynga Inc.. 1 analysts has assigned a Sell rating on the ZNGA stock. The 12-month mean consensus price target for the company’s shares has been set at $13.28.