Electronic Arts Inc. (NASDAQ:EA) Given Consensus Recommendation of “Reduce” by Brokerages

Shares of Electronic Arts Inc. (NASDAQ:EA) have received an average rating of “Reduce” from the seventeen ratings firms that are covering the company, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and one has issued a buy rating on the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $202.2727.

EA has been the topic of several research analyst reports. Argus cut Electronic Arts from a “buy” rating to a “hold” rating in a report on Thursday, May 28th. Weiss Ratings raised Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday, May 18th. Wall Street Zen raised Electronic Arts to a “hold” rating in a research note on Saturday, June 6th. Zacks Research cut Electronic Arts from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Finally, Citigroup increased their price objective on Electronic Arts from $202.00 to $204.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th.

Key Stories Impacting Electronic Arts

Here are the key news stories impacting Electronic Arts this week:

• Positive Sentiment: The acquisition has closed, removing deal-completion uncertainty and providing shareholders with a defined cash exit at $210 per share. The consortium’s large investment also signals confidence in EA’s franchises, including EA Sports FC and Battlefield. The $55 Billion Deal to Take Electronic Arts Private Is Finalized
• Neutral Sentiment: Because Electronic Arts is now privately held, its public-market valuation, earnings multiples and future stock-price catalysts will no longer apply once the transaction is fully reflected. Investors should focus instead on the cash consideration and settlement mechanics.
• Neutral Sentiment: EA appointed a new chief operating officer and chief studio officer after the transaction, suggesting the new owners are moving quickly to establish an operating structure and oversee the company’s game-development studios. EA appoints new COO and chief studio officer after closing $55 billion acquisition
• Negative Sentiment: Reports warn that cost-cutting and potential mass layoffs could follow the buyout. Such restructuring may reduce near-term expenses but could disrupt development, employee retention and the release pipeline for EA’s major franchises. EA Has Officially Been Sold, With Trump’s Son-In-Law Taking A Stake And Mass Layoffs Expected

Electronic Arts Stock Performance

Shares of NASDAQ EA opened at $209.70 on Friday. The company’s 50-day simple moving average is $205.73 and its 200-day simple moving average is $203.12. Electronic Arts has a 52-week low of $159.10 and a 52-week high of $210.20. The company has a current ratio of 1.21, a quick ratio of 1.05 and a debt-to-equity ratio of 0.21.

Insider Buying and Selling at Electronic Arts

In related news, insider Vijayanthimala Singh sold 1,200 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $203.00, for a total transaction of $243,600.00. Following the transaction, the insider directly owned 26,360 shares in the company, valued at approximately $5,351,080. The trade was a 4.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stuart Canfield sold 1,500 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $201.36, for a total transaction of $302,040.00. Following the completion of the transaction, the chief financial officer directly owned 25,991 shares in the company, valued at $5,233,547.76. This trade represents a 5.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 31,206 shares of company stock valued at $6,292,058. 0.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Electronic Arts

A number of large investors have recently made changes to their positions in EA. Resona Asset Management Co. Ltd. lifted its stake in Electronic Arts by 12.5% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 108,908 shares of the game software company’s stock worth $22,185,000 after acquiring an additional 12,095 shares in the last quarter. Swiss National Bank grew its position in Electronic Arts by 8.0% in the 1st quarter. Swiss National Bank now owns 704,400 shares of the game software company’s stock valued at $143,606,000 after acquiring an additional 51,900 shares in the last quarter. OFI Invest Asset Management purchased a new stake in Electronic Arts during the fourth quarter worth about $8,745,000. Tokio Marine Asset Management Co. Ltd. increased its stake in Electronic Arts by 500.3% during the fourth quarter. Tokio Marine Asset Management Co. Ltd. now owns 47,805 shares of the game software company’s stock worth $9,768,000 after purchasing an additional 39,841 shares during the period. Finally, Generali Asset Management SPA SGR lifted its position in shares of Electronic Arts by 76.3% during the fourth quarter. Generali Asset Management SPA SGR now owns 29,530 shares of the game software company’s stock worth $6,034,000 after purchasing an additional 12,777 shares in the last quarter. 90.23% of the stock is currently owned by hedge funds and other institutional investors.

About Electronic Arts

Electronic Arts Inc (NASDAQ: EA) is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA’s product lineup spans several well-known franchises and genres.