Drilling Down Into Zynga Inc. (ZNGA)

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 $2.90, down from yesterday’s close by -0.34%. 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

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Zynga Inc. (ZNGA) currently trades with a market capitalization of $2.47 Billion. That value represents a market adjusting for revenues that have been growing by 2.57 % on a quarterly year/year basis as of the company’s last quarterly report.



The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For ZNGA, the company currently has $858.67 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $49.7 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of $-0.01 on a per share basis this quarter. Perhaps, that suggests something about why 1.07% 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 $3.08. It is now trading 0.18% off that level. The stock is trading $2.80 its 50-day moving average by -0.1%. The stock carved out a 52-week low down at $2.27.

In recent action, Zynga Inc. (ZNGA) has made a move of +3.94% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 8.39, 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 2.65% with $753.50 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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