Zedge (NYSEAMERICAN:ZDGE) Downgraded by Zacks Research to Strong Sell

Zacks Research downgraded shares of Zedge (NYSEAMERICAN:ZDGE) from a hold rating to a strong sell rating in a report published on Wednesday morning,Zacks reports.

Zedge Stock Performance

Shares of ZDGE stock opened at $2.50 on Wednesday. The company 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 one year low of $2.21 and a one year high of $4.70. The company’s 50-day moving average is $2.92 and its 200 day moving average is $3.06.

Zedge (NYSEAMERICAN:ZDGE) last announced its quarterly earnings results on Monday, October 26th. The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.02. Zedge had a negative net margin of 0.41% and a positive return on equity of 13.10%. The company had revenue of $7.77 million during the quarter, compared to the consensus estimate of $7.20 million. As a group, research analysts predict that Zedge will post 0.12 earnings per share for the current fiscal year.

Zedge Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 9th will be given a $0.02 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $0.08 dividend on an annualized basis and a yield of 3.2%. Zedge’s payout ratio is -11.94%.

Institutional Investors Weigh In On Zedge

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Kahn Brothers Group Inc. purchased a new position in shares of Zedge in the 2nd quarter worth $242,000. NewEdge Advisors LLC lifted its holdings in Zedge by 2,923.0% in the first quarter. NewEdge Advisors LLC now owns 58,918 shares of the company’s stock valued at $173,000 after acquiring an additional 56,969 shares during the period. Finally, Hillsdale Investment Management Inc. boosted its position in Zedge by 1,982.8% in the first quarter. Hillsdale Investment Management Inc. now owns 50,653 shares of the company’s stock worth $148,000 after purchasing an additional 48,221 shares during the last quarter. Hedge funds and other institutional investors own 29.37% of the company’s stock.

Trending Headlines about Zedge

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.

About Zedge

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.