Electronic Arts Inc. (EA) Stock Rating Upgraded by Zacks Investment Research
Electronic Arts Inc. (NASDAQ:EA) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday. The brokerage presently has a $95.00 price objective on the game software company’s stock. Zacks Investment Research’s price objective suggests a potential upside of 13.08% from the stock’s current price.
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 second 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. “
Several other research firms have also commented on EA. Vetr lowered shares of Electronic Arts from a “strong-buy” rating to a “buy” rating and set a $95.23 price target on the stock. in a report on Monday, October 3rd. Benchmark Co. restated a “hold” rating and issued a $98.00 price target on shares of Electronic Arts in a report on Thursday, September 22nd. Bank of America Corp. restated a “buy” rating on shares of Electronic Arts in a report on Friday, September 16th. Morgan Stanley assumed coverage on shares of Electronic Arts in a report on Friday, September 23rd. They issued an “overweight” rating and a $101.00 price target on the stock. Finally, Stifel Nicolaus raised their price target on shares of Electronic Arts from $87.00 to $88.00 and gave the company a “buy” rating in a report on Monday. Four analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $89.02.
Shares of Electronic Arts (NASDAQ:EA) opened at 84.01 on Monday. The stock has a market capitalization of $25.27 billion, a P/E ratio of 23.66 and a beta of 0.63. The stock has a 50 day moving average of $83.15 and a 200-day moving average of $75.94. Electronic Arts has a 1-year low of $53.01 and a 1-year high of $86.07.
Electronic Arts (NASDAQ:EA) last posted its quarterly earnings results on Tuesday, August 2nd. The game software company reported $0.07 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.02) by $0.09. Electronic Arts had a net margin of 25.85% and a return on equity of 24.97%. The firm had revenue of $682 million for the quarter, compared to analyst estimates of $652.64 million. During the same quarter last year, the firm posted $0.15 earnings per share. Electronic Arts’s revenue for the quarter was down 1.6% compared to the same quarter last year. Equities research analysts predict that Electronic Arts will post $3.64 earnings per share for the current fiscal year.
In other Electronic Arts news, EVP Laura Miele sold 2,600 shares of the business’s stock in a transaction dated Wednesday, August 24th. The shares were sold at an average price of $82.21, for a total value of $213,746.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Andrew Wilson sold 50,000 shares of the business’s stock in a transaction dated Tuesday, September 27th. The stock was sold at an average price of $85.03, for a total transaction of $4,251,500.00. Following the completion of the sale, the chief executive officer now owns 290,581 shares in the company, valued at $24,708,102.43. The disclosure for this sale can be found here. Corporate insiders own 3.46% of the company’s stock.
A number of large investors have recently modified their holdings of EA. FMR LLC boosted its stake in shares of Electronic Arts by 13.6% in the second quarter. FMR LLC now owns 29,807,407 shares of the game software company’s stock valued at $2,258,208,000 after buying an additional 3,570,117 shares during the period. Lone Pine Capital LLC boosted its stake in shares of Electronic Arts by 86.1% in the second quarter. Lone Pine Capital LLC now owns 3,555,356 shares of the game software company’s stock valued at $269,354,000 after buying an additional 1,644,713 shares during the period. Jackson Square Partners LLC boosted its stake in shares of Electronic Arts by 14.3% in the first quarter. Jackson Square Partners LLC now owns 12,098,912 shares of the game software company’s stock valued at $885,415,000 after buying an additional 1,509,427 shares during the period. Massachusetts Financial Services Co. MA boosted its stake in shares of Electronic Arts by 30.6% in the second quarter. Massachusetts Financial Services Co. MA now owns 4,818,390 shares of the game software company’s stock valued at $365,042,000 after buying an additional 1,130,252 shares during the period. Finally, Wellington Management Group LLP boosted its stake in shares of Electronic Arts by 131.2% in the first quarter. Wellington Management Group LLP now owns 1,827,163 shares of the game software company’s stock valued at $120,793,000 after buying an additional 1,036,789 shares during the period.
About Electronic Arts
Electronic Arts Inc develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed.
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