Electronic Arts Inc. (NASDAQ:EA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
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. “
Several other research analysts also recently commented on the company. Vetr downgraded Electronic Arts from a “buy” rating to a “hold” rating and set a $80.46 price objective on the stock. in a report on Monday, July 11th. Morgan Stanley started coverage on Electronic Arts in a report on Friday, September 23rd. They issued an “overweight” rating and a $101.00 price objective on the stock. BMO Capital Markets reiterated a “hold” rating on shares of Electronic Arts in a report on Thursday, June 16th. Argus reiterated a “hold” rating on shares of Electronic Arts in a report on Sunday, August 21st. Finally, Benchmark Co. reiterated a “hold” rating and issued a $98.00 price objective on shares of Electronic Arts in a report on Thursday, September 22nd. Five research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $88.59.
Shares of Electronic Arts (NASDAQ:EA) traded down 0.20% during midday trading on Tuesday, hitting $85.24. The company had a trading volume of 720,759 shares. Electronic Arts has a 52 week low of $53.01 and a 52 week high of $86.07. The company has a market capitalization of $25.64 billion, a P/E ratio of 24.01 and a beta of 0.63. The firm’s 50 day moving average is $82.33 and its 200 day moving average is $74.60.
Electronic Arts (NASDAQ:EA) last released its quarterly earnings results on Tuesday, August 2nd. The game software company reported $0.07 earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.02) by $0.09. Electronic Arts had a return on equity of 24.97% and a net margin of 25.85%. The business had revenue of $682 million for the quarter, compared to the consensus estimate of $652.64 million. During the same quarter last year, the business posted $0.15 earnings per share. The company’s revenue for the quarter was down 1.6% on a year-over-year basis. Equities research analysts anticipate that Electronic Arts will post $3.64 EPS for the current year.
In other Electronic Arts news, SVP Kenneth A. Barker sold 15,909 shares of the business’s stock in a transaction on Friday, August 19th. The shares were sold at an average price of $81.39, for a total transaction of $1,294,833.51. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Joel Linzner sold 4,000 shares of the business’s stock in a transaction on Friday, July 8th. The shares were sold at an average price of $77.78, for a total transaction of $311,120.00. Following the sale, the executive vice president now owns 105,848 shares of the company’s stock, valued at $8,232,857.44. The disclosure for this sale can be found here. 3.46% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in the stock. Archford Capital Strategies LLC raised its stake in shares of Electronic Arts by 1,407.3% in the second quarter. Archford Capital Strategies LLC now owns 1,447 shares of the game software company’s stock worth $110,000 after buying an additional 1,351 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. bought a new stake in Electronic Arts during the second quarter valued at approximately $168,000. SSI Investment Management Inc. bought a new stake in Electronic Arts during the second quarter valued at approximately $200,000. Stratos Wealth Partners LTD. bought a new stake in Electronic Arts during the second quarter valued at approximately $202,000. Finally, Wetherby Asset Management Inc. bought a new stake in Electronic Arts during the second quarter valued at approximately $239,000.
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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