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

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

Zedge Stock Performance

ZDGE stock opened at $2.50 on Wednesday. The company has a market capitalization of $31.35 million, a price-to-earnings ratio of 10.96 and a beta of 1.20. The business’s 50 day moving average price is $2.92 and its two-hundred day moving average price is $3.06. Zedge has a fifty-two week low of $2.21 and a fifty-two week high of $4.70.

Zedge (NYSEAMERICAN:ZDGE) last released its 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. Zedge had a positive return on equity of 13.10% and a negative net margin of 0.41%. The firm had revenue of $7.77 million for the quarter, compared to analysts’ expectations of $7.20 million. Sell-side analysts forecast that Zedge will post 0.12 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ZDGE. Hillsdale Investment Management Inc. increased its stake in Zedge by 1,982.8% in the 1st quarter. Hillsdale Investment Management Inc. now owns 50,653 shares of the company’s stock worth $148,000 after buying an additional 48,221 shares during the period. NewEdge Advisors LLC boosted its position in Zedge by 2,923.0% in the 1st quarter. NewEdge Advisors LLC now owns 58,918 shares of the company’s stock valued at $173,000 after buying an additional 56,969 shares during the period. Finally, Kahn Brothers Group Inc. purchased a new stake in Zedge in the 2nd quarter valued at about $242,000. 29.37% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Zedge

Here are the key news stories impacting Zedge this week:

• Positive Sentiment: Zedge’s Board declared a quarterly dividend, which may support investor confidence and provide an income component for shareholders. The announcement signals that management believes the company can continue returning capital to investors. Zedge Declares Quarterly Dividend, Signaling Ongoing Confidence
• Positive Sentiment: Zedge’s latest reported quarter was better than expected, with earnings of $0.04 per share versus the $0.02 consensus estimate and revenue of $7.77 million versus expectations of $7.20 million. The earnings beat provides some support for the shares, although investors appear more focused on forward expectations. Zedge, Inc. Q4 2026 Earnings Call Summary
• Neutral Sentiment: Zedge filed its Q1 FY2027 financial results and held an earnings call, giving investors updated information on its digital business and operating performance. The filings may remain a focus as investors assess whether recent results can translate into stronger future profitability. Zedge Announces Q1 FY2027 Financial Results in 8-K Filing
• Negative Sentiment: Maxim Group substantially reduced its Zedge earnings forecasts. FY2027 EPS was cut to $0.12 from $0.27, FY2028 EPS to $0.14 from $0.28, and several quarterly estimates were also lowered, including Q1 FY2027 to $0.02 from $0.07 and Q4 FY2027 to zero from $0.06. These revisions imply weaker expected profitability and are the clearest negative catalyst for ZDGE. Maxim Group Earnings Estimate Changes
• Negative Sentiment: A separate fair-value analysis cited weakening margin expectations and potential traffic risks, raising concerns about revenue quality and the sustainability of Zedge’s earnings growth. Zedge Stock Fair Value Falls As Margin View Weakens

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.