Activision Blizzard (NASDAQ:ATVI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm currently has a $77.00 price target on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 10.55% from the company’s previous close.

According to Zacks, “Activision reported encouraging fourth-quarter 2017 results. Shares have outperformed the industry in the past year. The company's popularity is primarily driven by its well-known franchises, which will continue to fuel top-line growth. Increasing digital revenues, King Digital buyout and strength in franchises such as Call of Duty, Destiny & Overwatch are the key drivers. The company’s attempts to become a broad-based media company are prudent in our view. Apart from launching a movie studio and consumer products division, the company is also strengthening its presence in the lucrative e-sports market. However, hit driven and competitive nature of the video game industry begets caution.”

Several other research firms have also recently issued reports on ATVI. BidaskClub cut shares of Activision Blizzard from a “buy” rating to a “hold” rating in a report on Wednesday, December 27th. SunTrust Banks set a $77.00 price target on shares of Activision Blizzard and gave the company a “buy” rating in a report on Wednesday, January 24th. Vetr cut shares of Activision Blizzard from a “hold” rating to a “sell” rating and set a $69.79 price target on the stock. in a report on Monday, January 29th. TheStreet cut shares of Activision Blizzard from a “b” rating to a “c+” rating in a report on Thursday, February 8th. Finally, Wedbush set a $75.00 price target on shares of Activision Blizzard and gave the company a “buy” rating in a report on Thursday, October 26th. Six research analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus target price of $71.95.

Shares of Activision Blizzard (ATVI) opened at $69.65 on Tuesday. The stock has a market cap of $51,437.45, a price-to-earnings ratio of 193.47, a P/E/G ratio of 1.81 and a beta of 1.11. The company has a quick ratio of 1.77, a current ratio of 1.78 and a debt-to-equity ratio of 0.46. Activision Blizzard has a twelve month low of $44.47 and a twelve month high of $74.94.

Activision Blizzard (NASDAQ:ATVI) last posted its quarterly earnings results on Thursday, February 8th. The company reported $0.94 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.02. The firm had revenue of $2.64 billion for the quarter, compared to analysts’ expectations of $2.55 billion. Activision Blizzard had a net margin of 3.89% and a return on equity of 17.48%. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. During the same period in the prior year, the company posted $0.65 earnings per share. equities analysts predict that Activision Blizzard will post 2.57 EPS for the current fiscal year.

In related news, CEO of King Digital Entertainment Riccardo Zacconi sold 19,761 shares of the stock in a transaction dated Friday, November 17th. The shares were sold at an average price of $63.64, for a total value of $1,257,590.04. Following the sale, the insider now owns 41,435 shares of the company’s stock, valued at approximately $2,636,923.40. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 2.12% of the stock is owned by company insiders.

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. increased its holdings in shares of Activision Blizzard by 5.8% in the 4th quarter. BlackRock Inc. now owns 54,967,203 shares of the company’s stock worth $3,480,525,000 after acquiring an additional 2,992,193 shares during the period. Egerton Capital UK LLP increased its holdings in shares of Activision Blizzard by 22.0% in the 4th quarter. Egerton Capital UK LLP now owns 11,051,017 shares of the company’s stock worth $699,750,000 after acquiring an additional 1,991,213 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Activision Blizzard by 7.4% in the 4th quarter. Bank of New York Mellon Corp now owns 8,026,958 shares of the company’s stock worth $508,266,000 after acquiring an additional 550,833 shares during the period. Geode Capital Management LLC increased its holdings in shares of Activision Blizzard by 3.3% in the 4th quarter. Geode Capital Management LLC now owns 7,790,249 shares of the company’s stock worth $492,227,000 after acquiring an additional 252,340 shares during the period. Finally, Boston Partners increased its holdings in shares of Activision Blizzard by 0.5% in the 3rd quarter. Boston Partners now owns 6,778,871 shares of the company’s stock worth $437,305,000 after acquiring an additional 33,114 shares during the period. 85.61% of the stock is currently owned by institutional investors and hedge funds.

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Activision Blizzard Company Profile

Activision Blizzard, Inc is a developer and publisher of interactive entertainment content and services. The Company develops and distributes content and services across various gaming platforms, including video game consoles, personal computers (PC) and mobile devices. Its segments include Activision Publishing, Inc (Activision), Blizzard Entertainment, Inc (Blizzard), King Digital Entertainment (King) and Other.

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