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

Zedge (NYSEAMERICAN:ZDGE) was downgraded by equities researchers 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%

NYSEAMERICAN ZDGE 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. Zedge has a twelve month low of $2.21 and a twelve month high of $4.70. The stock has a fifty day simple moving average of $2.92 and a 200 day simple moving average of $3.06.

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

Institutional Investors Weigh In On Zedge

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Kahn Brothers Group Inc. purchased a new position in Zedge in the second quarter valued at approximately $242,000. NewEdge Advisors LLC increased its position in Zedge by 2,923.0% in the first quarter. NewEdge Advisors LLC now owns 58,918 shares of the company’s stock worth $173,000 after buying an additional 56,969 shares during the last quarter. Finally, Hillsdale Investment Management Inc. increased 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 buying an additional 48,221 shares during the last quarter. 29.37% of the stock is owned by hedge funds and other institutional investors.

Zedge News Summary

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

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.