Changyou.Com (CYOU) Rating Lowered to Hold at Zacks Investment Research

Changyou.Com (NASDAQ:CYOU) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday.

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 brokerages have also recently issued reports on CYOU. BidaskClub raised shares of Changyou.Com from a “strong sell” rating to a “sell” rating in a report on Tuesday, July 3rd. Credit Suisse Group raised shares of Changyou.Com from an “underperform” rating to a “neutral” rating in a report on Tuesday, July 31st. Three research analysts have rated the stock with a sell rating and three have given a hold rating to the stock. Changyou.Com currently has an average rating of “Hold” and a consensus price target of $28.83.

Shares of Changyou.Com stock opened at $12.91 on Tuesday. Changyou.Com has a 1 year low of $12.68 and a 1 year high of $40.76. The firm has a market cap of $695.88 million, a P/E ratio of 6.32 and a beta of 0.49.

Changyou.Com (NASDAQ:CYOU) last issued its earnings results on Monday, July 30th. The technology company reported $0.52 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.45 by $0.07. Changyou.Com had a net margin of 8.28% and a return on equity of 3.92%. The firm had revenue of $112.83 million during the quarter, compared to analysts’ expectations of $118.68 million. During the same quarter last year, the company posted $1.14 earnings per share. The firm’s revenue was down 25.0% compared to the same quarter last year. As a group, analysts forecast that Changyou.Com will post 1.22 EPS for the current year.

A number of hedge funds have recently modified their holdings of the business. Millennium Management LLC raised its stake in Changyou.Com by 273.9% during the second quarter. Millennium Management LLC now owns 278,118 shares of the technology company’s stock worth $4,636,000 after purchasing an additional 203,736 shares during the period. Renaissance Technologies LLC raised its stake in Changyou.Com by 3.4% during the second quarter. Renaissance Technologies LLC now owns 1,022,900 shares of the technology company’s stock worth $17,052,000 after purchasing an additional 33,300 shares during the period. Maso Capital Partners Ltd raised its stake in shares of Changyou.Com by 7.8% in the 2nd quarter. Maso Capital Partners Ltd now owns 184,500 shares of the technology company’s stock valued at $3,076,000 after acquiring an additional 13,400 shares during the period. Cambridge Investment Research Advisors Inc. raised its stake in shares of Changyou.Com by 50.0% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 170,724 shares of the technology company’s stock valued at $2,846,000 after acquiring an additional 56,926 shares during the period. Finally, BlackRock Inc. raised its stake in shares of Changyou.Com by 59.7% in the 2nd quarter. BlackRock Inc. now owns 313,078 shares of the technology company’s stock valued at $5,220,000 after acquiring an additional 117,014 shares during the period. 26.52% of the stock is currently owned by institutional investors.

About Changyou.Com

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.

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