Changyou.Com (CYOU) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Changyou.Com (NASDAQ:CYOU) from a strong-buy rating to a hold rating in a research note published on Friday, Zacks.com reports.

According to Zacks, “Changyou.com Limited is a developer and operator of online games in China. It engages in the development, operation, and licensing of massively multi-player online role-playing games, which are interactive online games that are played simultaneously by various game players. The company currently operates two multi-player online role-playing games (MMORPGs), including the in-house developed Tian Long Ba Bu and the licensed Blade Online. Changyou.com has three MMORPGs in the pipeline, which include the Duke of Mount Deer, Immortal Faith, and the Legend of the Ancient World. Based in Beijing, the People’s Republic of China, Changyou.com Limited is a subsidiary of Sohu.com Inc. “

Several other research analysts have also weighed in on CYOU. BidaskClub raised shares of Changyou.Com from a sell rating to a hold rating in a research note on Thursday. ValuEngine raised shares of Changyou.Com from a sell rating to a hold rating in a research note on Monday, April 29th.

Shares of CYOU opened at $19.49 on Friday. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.16. Changyou.Com has a 12-month low of $12.68 and a 12-month high of $22.27. The stock has a market capitalization of $1.04 billion, a P/E ratio of 12.41 and a beta of 0.75.

Changyou.Com (NASDAQ:CYOU) last announced its quarterly earnings data on Monday, April 29th. The technology company reported $0.69 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.29. Changyou.Com had a net margin of 28.48% and a return on equity of 16.03%. The firm had revenue of $123.31 million during the quarter, compared to analyst estimates of $114.15 million. During the same quarter in the prior year, the firm posted $0.55 earnings per share. Changyou.Com’s quarterly revenue was down 10.1% on a year-over-year basis. Equities research analysts anticipate that Changyou.Com will post 1.97 EPS for the current year.

The business also recently announced a special dividend, which will be paid on Friday, May 31st. Shareholders of record on Wednesday, May 15th will be paid a dividend of $9.40 per share. The ex-dividend date of this dividend is Tuesday, May 14th.

A number of hedge funds have recently made changes to their positions in CYOU. Wells Fargo & Company MN boosted its stake in Changyou.Com by 265.1% during the third quarter. Wells Fargo & Company MN now owns 12,998 shares of the technology company’s stock worth $172,000 after buying an additional 9,438 shares during the period. Strs Ohio lifted its position in shares of Changyou.Com by 16.1% during the fourth quarter. Strs Ohio now owns 95,051 shares of the technology company’s stock worth $1,737,000 after purchasing an additional 13,210 shares in the last quarter. Renaissance Group LLC lifted its position in shares of Changyou.Com by 5.3% during the fourth quarter. Renaissance Group LLC now owns 31,368 shares of the technology company’s stock worth $573,000 after purchasing an additional 1,586 shares in the last quarter. Granite Point Capital Management L.P. acquired a new stake in shares of Changyou.Com during the fourth quarter worth about $184,000. Finally, Mackenzie Financial Corp acquired a new stake in shares of Changyou.Com during the fourth quarter worth about $1,487,000. 27.41% of the stock is owned by institutional investors.

Changyou.Com Company Profile

Changyou.com Limited develops and operates online games in the People's Republic of China. The company operates through Online Game, Platform Channel, and Others segments. It develops, operates, and licenses online games, including interactive online games that are accessed and played simultaneously by various game players through personal computers; and mobile games played on mobile devices.

Further Reading: Straddles

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