Electronic Arts Inc. (EA) Downgraded to Hold at Zacks Investment Research
According to Zacks, “We expect Electronic Arts digital business to continue to grow in fiscal 2017 and beyond, primarily on the back of a strong mobile business. In last reported quarter, higher digital revenues and strength in titles like FIFA Ultimate Team, Star Wars: Galaxy of Heroes and NBA Live were the driving factors. Going ahead, the company has a strong pipeline of new releases, which include a brand new Battlefield and Titanfall game that are likely to fuel top-line growth. Moreover, cost optimization initiatives will be beneficial going forward. However, in the current quarter, revenues will be impacted as the FIFA 17 launch is scheduled just four days before the quarter ends. Also, a highly competitive video game market and underperformance of any title remain concerns. Estimates have been stable lately ahead of the company’s second quarter fiscal 2017 earnings release. The company has positive earnings surprise of 32.22% in trailing four quarters. “
EA has been the topic of a number of other research reports. Vetr raised shares of Electronic Arts from a sell rating to a buy rating and set a $80.46 target price on the stock in a research note on Wednesday, June 22nd. MKM Partners boosted their target price on shares of Electronic Arts from $87.00 to $88.00 and gave the company a buy rating in a report on Wednesday, August 3rd. Cowen and Company restated an outperform rating and issued a $83.00 target price on shares of Electronic Arts in a report on Tuesday, August 23rd. Oppenheimer Holdings Inc. restated an outperform rating and issued a $88.00 target price on shares of Electronic Arts in a report on Wednesday, August 3rd. Finally, Bank of America Corp. reiterated a buy rating on shares of Electronic Arts in a report on Friday, September 16th. Five research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. The stock currently has a consensus rating of Buy and an average price target of $88.59.
Electronic Arts (NASDAQ:EA) traded down 0.12% on Tuesday, hitting $85.46. The stock had a trading volume of 546,044 shares. The company’s 50 day moving average is $82.50 and its 200-day moving average is $74.75. The firm has a market capitalization of $25.70 billion, a price-to-earnings ratio of 24.07 and a beta of 0.63. Electronic Arts has a 1-year low of $53.01 and a 1-year high of $86.07.
Electronic Arts (NASDAQ:EA) last announced its quarterly earnings data on Tuesday, August 2nd. The game software company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.09. The business had revenue of $682 million for the quarter, compared to analysts’ expectations of $652.64 million. Electronic Arts had a net margin of 25.85% and a return on equity of 24.97%. The firm’s quarterly revenue was down 1.6% compared to the same quarter last year. During the same period last year, the firm posted $0.15 earnings per share. On average, analysts forecast that Electronic Arts will post $3.64 EPS for the current year.
In related news, CFO Blake J. Jorgensen sold 10,100 shares of Electronic Arts stock in a transaction dated Wednesday, September 21st. The shares were sold at an average price of $83.21, for a total transaction of $840,421.00. Following the completion of the transaction, the chief financial officer now directly owns 113,410 shares of the company’s stock, valued at approximately $9,436,846.10. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Andrew Wilson sold 8,000 shares of Electronic Arts stock in a transaction dated Monday, August 1st. The shares were sold at an average price of $76.47, for a total transaction of $611,760.00. Following the transaction, the chief executive officer now directly owns 248,581 shares of the company’s stock, valued at $19,008,989.07. The disclosure for this sale can be found here. 3.46% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of EA. Synovus Financial Corp boosted its position in shares of Electronic Arts by 0.3% in the second quarter. Synovus Financial Corp now owns 5,610 shares of the game software company’s stock worth $426,000 after buying an additional 17 shares during the period. Checchi Capital Advisers LLC boosted its position in shares of Electronic Arts by 2.1% in the second quarter. Checchi Capital Advisers LLC now owns 3,562 shares of the game software company’s stock worth $270,000 after buying an additional 74 shares during the period. BOKF NA boosted its position in shares of Electronic Arts by 0.6% in the second quarter. BOKF NA now owns 13,272 shares of the game software company’s stock worth $1,005,000 after buying an additional 80 shares during the period. Oppenheimer & Co. Inc. boosted its position in shares of Electronic Arts by 1.2% in the second quarter. Oppenheimer & Co. Inc. now owns 8,359 shares of the game software company’s stock worth $634,000 after buying an additional 101 shares during the period. Finally, Gerber Kawasaki Wealth & Investment Management boosted its position in shares of Electronic Arts by 1.4% in the second quarter. Gerber Kawasaki Wealth & Investment Management now owns 7,693 shares of the game software company’s stock worth $582,000 after buying an additional 108 shares during the period.
Electronic Arts Company Profile
Electronic Arts Inc is a game software content and services provider. The Company develops, markets, publishes and distributes game software content for consumers of various video game machines and electronic devices. It also provides game software-related services. The Company’s brands include Battlefield, Mass Effect, Need for Speed, Dragon Age, The Sims, Bejeweled and Plants v.
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