Finance

What Recent Ownership Trends Suggest About Zynga Inc. (ZNGA)’s Future Performance

Recent insider trends for Zynga Inc. (NASDAQ:ZNGA) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of ZNGA, the data has a lot to say about how the stock might perform going forward.

Institutions own 78.52% of Zynga Inc. (ZNGA)’s shares. The total value of these holdings, in millions, is $2,388. Among active positions in the latest quarter, 111 holders increased their positions by a total of 86.22 million shares, 105 holders decreased the positions by a total of 63.24 million shares, and 36 holders held their positions. This works out to a net increase in ownership of 22.98 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 32 holders initiated new positions by a total of 21.91 million shares and 30 holders exited their positions by a total of 6.44 million shares. This nets out to an increase of 15.48 million shares and is a bullish sign for ZNGA.

In the last three months, insiders executed a total of 11 trades. 11 were sells. Insider ownership decreased by a total of 590389 shares, which suggests that ZNGA’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 4 buys and 41 sells, and ownership decreased by a net of 20.68 million shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Zynga Inc. (NASDAQ:ZNGA)’s short interest is 12.2 million shares, or 1.71% of the float. This represents a decrease of -34% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that ZNGA is a Weak buy, which implies that ZNGA is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Zynga Inc. (NASDAQ:ZNGA) is undervalued.

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