Electronic Arts Inc. (NASDAQ:EA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Electronic Arts’ revenues continues to register strong growth year over year driven by strength in digital business and releases like Battlefield and FIFA 17. The company also raised its fiscal 2017 revenue guidance. Management stated that strength in franchises like Battlefield, FIFA and Star Wars: Galaxy of Heroes will continue to fuel long-term growth. Moreover, EA expects the “live services components” of these franchises to emerge as a future growth driver. We believe that EA’s digital business is expected to continue to grow in fiscal 2017 and beyond, primarily on the back of a strong mobile business. Moreover, cost optimization initiatives will be beneficial going forward. Additionally, over the past one year, the company has outperformed the broader market. However, competitive and hit driven nature of the industry begets caution.”
A number of other brokerages also recently issued reports on EA. Mizuho reiterated an “outperform” rating and issued a $ 92.00 price target on shares of Electronic Arts in a report on Monday, January 30th. Macquarie restated an “outperform” rating and set a $ 88.00 target price on shares of Electronic Arts in a research note on Wednesday, February 1st. Vetr downgraded Electronic Arts from a “sell” rating to a “strong sell” rating and set a $ 75.92 target price on the stock. in a research note on Tuesday, March 7th. Jefferies Group LLC boosted their target price on Electronic Arts from $ 105.00 to $ 110.00 and gave the stock a “buy” rating in a research note on Wednesday, February 1st. Finally, Benchmark Co. boosted their target price on Electronic Arts from $ 101.25 to $ 101.94 and gave the stock a “buy” rating in a research note on Thursday, December 8th. Seven investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Electronic Arts presently has an average rating of “Buy” and an average target price of $ 90.98.
Electronic Arts (NASDAQ:EA) opened at 89.65 on Tuesday. The company has a 50-day moving average of $ 89.15 and a 200-day moving average of $ 83.32. Electronic Arts has a one year low of $ 61.10 and a one year high of $ 91.82. The company has a market cap of $ 27.64 billion, a price-to-earnings ratio of 21.76 and a beta of 0.65.
Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Tuesday, January 31st. The game software company reported $ 2.45 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $ 2.30 by $ 0.15. Electronic Arts had a return on equity of 27.22% and a net margin of 28.10%. The business had revenue of $ 2.07 billion for the quarter, compared to the consensus estimate of $ 2.05 billion. During the same period last year, the business posted $ 1.83 EPS. The business’s revenue was up 7.4% compared to the same quarter last year. Equities research analysts expect that Electronic Arts will post $ 3.83 EPS for the current fiscal year.
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In related news, EVP Laura Miele sold 389 shares of the stock in a transaction that occurred on Thursday, February 16th. The stock was sold at an average price of $ 87.77, for a total value of $ 34,142.53. Following the completion of the transaction, the executive vice president now directly owns 389 shares in the company, valued at $ 34,142.53. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Peter R. Moore sold 10,000 shares of the stock in a transaction that occurred on Friday, March 3rd. The stock was sold at an average price of $ 86.60, for a total value of $ 866,000.00. The disclosure for this sale can be found here. Insiders sold 107,179 shares of company stock valued at $ 9,210,452 over the last 90 days. Company insiders own 3.46% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the company. ING Groep NV raised its position in shares of Electronic Arts by 60.7% in the fourth quarter. ING Groep NV now owns 11,001 shares of the game software company’s stock valued at $ 882,000 after buying an additional 4,155 shares during the last quarter. Great West Life Assurance Co. Can raised its position in shares of Electronic Arts by 1.6% in the third quarter. Great West Life Assurance Co. Can now owns 215,249 shares of the game software company’s stock valued at $ 18,363,000 after buying an additional 3,330 shares during the last quarter. B.S. Pension Fund Trustee Ltd acting for the British Steel Pension Fund acquired a new position in shares of Electronic Arts during the third quarter valued at $ 2,191,000. HL Financial Services LLC raised its position in shares of Electronic Arts by 231.2% in the third quarter. HL Financial Services LLC now owns 51,754 shares of the game software company’s stock valued at $ 4,420,000 after buying an additional 36,128 shares during the last quarter. Finally, Conning Inc. raised its position in shares of Electronic Arts by 1.9% in the third quarter. Conning Inc. now owns 7,591 shares of the game software company’s stock valued at $ 648,000 after buying an additional 140 shares during the last quarter.
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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