Zynga Inc. (ZNGA): What’s the Story?

Zynga Inc. (ZNGA) is an interesting player in the Technology space, with a focus on Multimedia & Graphics Software. The stock has been active on the tape, currently trading at $3.31, down from yesterday’s close by -5.16%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Zynga Inc. (ZNGA) currently trades with a market capitalization of $3.04 Billion. That value represents a market adjusting for revenues that have been growing by 22.43 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $84.61 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $0.03 on a per share basis this quarter. Perhaps, that suggests something about why 1.34% of the outstanding share supply is held by institutional investors.



Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Zynga Inc. recorded a 52-week high of $4.34. It is now trading 1.03% off that level. The stock is trading $3.83 its 50-day moving average by 0.52%. The stock carved out a 52-week low down at $2.40.

In recent action, Zynga Inc. (ZNGA) has made a move of -16.62% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 10.86, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.16% with $765.78 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ZNGA.

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