Zedge (NYSEAMERICAN:ZDGE) Stock Rating Lowered by Zacks Research

Zedge (NYSEAMERICAN:ZDGE) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday, Zacks reports.

Zedge Stock Down 4.9%

ZDGE stock opened at $2.50 on Wednesday. The firm’s fifty day simple moving average is $2.92 and its two-hundred day simple moving average is $3.06. The stock has a market capitalization of $31.35 million, a price-to-earnings ratio of -124.94 and a beta of 1.20. Zedge has a twelve month low of $2.21 and a twelve month high of $4.70.

Zedge (NYSEAMERICAN:ZDGE) last released its quarterly earnings results on Monday, October 26th. The company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.02 by $0.02. The firm had revenue of $7.77 million during the quarter, compared to analysts’ expectations of $7.20 million. Zedge had a negative net margin of 0.41% and a positive return on equity of 13.10%. As a group, equities research analysts expect that Zedge will post 0.12 EPS for the current year.

Institutional Investors Weigh In On Zedge

A number of institutional investors and hedge funds have recently modified their holdings of ZDGE. Kahn Brothers Group Inc. purchased a new stake in Zedge in the second quarter worth $242,000. NewEdge Advisors LLC lifted its position in shares of Zedge by 2,923.0% during the first quarter. NewEdge Advisors LLC now owns 58,918 shares of the company’s stock worth $173,000 after purchasing an additional 56,969 shares during the last quarter. Finally, Hillsdale Investment Management Inc. boosted its stake in shares of Zedge by 1,982.8% during the first quarter. Hillsdale Investment Management Inc. now owns 50,653 shares of the company’s stock valued at $148,000 after purchasing an additional 48,221 shares during the period. 29.37% of the stock is owned by institutional investors.

Key Zedge News

Here are the key news stories impacting Zedge this week:

• Positive Sentiment: Zedge declared a quarterly cash dividend of $0.02 per share, payable November 23 to shareholders of record November 9. The annualized dividend is $0.08 per share, representing an approximately 3.2% yield and signaling continued confidence from management. Zedge Announces Quarterly Cash Dividend
• Neutral Sentiment: Zedge reported its first-quarter fiscal 2027 financial results in an 8-K filing, while a separate earnings-call summary provides additional details for investors. The filings may offer insight into operating trends, but the available reports do not indicate a major positive catalyst. Zedge Announces Q1 FY2027 Financial Results Zedge Q4 2026 Earnings Call Summary
• Negative Sentiment: Maxim Group significantly reduced its Zedge earnings forecasts, cutting estimates for fiscal 2027 EPS to $0.12 from $0.27, fiscal 2028 EPS to $0.14 from $0.28, and first-quarter fiscal 2028 EPS to $0.01 from $0.08. The revisions point to weaker expected profitability and are a notable bearish catalyst.
• Negative Sentiment: A report said Zedge’s fair value declined as its margin outlook weakened amid traffic risks, raising concerns about advertising or user-engagement trends. Zedge Stock Fair Value Falls
• Negative Sentiment: Zacks Research downgraded ZDGE from “hold” to “strong sell,” adding to the negative analyst sentiment surrounding the stock.

Zedge Company Profile

Zedge, Inc (NYSE American: ZDGE) operates a mobile-first digital content platform that enables users to discover, customize and share content for smartphones and other personal devices. Its principal consumer product is the Zedge app, which offers wallpapers, video wallpapers, ringtones, notification sounds, stickers and other personalization content.

The company provides both free and premium content, with offerings from independent creators as well as technology-assisted and user-generated content.