Zacks Investment Research cut shares of Electronic Arts Inc. (NASDAQ:EA) from a hold rating to a sell rating in a research report report published on Wednesday, May 10th.
According to Zacks, “Electronic Arts reported fourth quarter fiscal 2017 results wherein earnings came in much lower than prior year quarter whereas revenues increased year over year. Continued increases in digital revenues and strength in mobile games (Star Wars: Galaxy of Heroes) and FIFA 17 as well as Battlefield 1 were the driving factors. Apart from growing digital business, cost optimization initiatives will be beneficial going forward. However, the video game industry is hit driven. Though EA has a powerful line up of games that can be repeatedly upgraded, there is no assurance that a particular game will be a hit. We believe the underperformance of any title would affect results. Even stiff competition is a big concern. Though shares have outperformed the Zacks industry over the past one year, the stock trades at high P/B multiple, at current market price, which restricts its upside potential. “
Several other equities research analysts also recently weighed in on the company. Mizuho set a $ 115.00 price target on Electronic Arts and gave the stock a buy rating in a research report on Wednesday, May 10th. Vetr raised Electronic Arts from a hold rating to a buy rating and set a $ 99.98 price target on the stock in a research report on Monday, May 8th. Bank of America Corp reissued a neutral rating and set a $ 104.00 target price on shares of Electronic Arts in a research note on Monday, May 8th. MKM Partners reissued a buy rating and set a $ 109.00 target price (up from $ 95.00) on shares of Electronic Arts in a research note on Friday, May 5th. Finally, Piper Jaffray Companies reissued a buy rating and set a $ 99.00 target price on shares of Electronic Arts in a research note on Monday, May 1st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and sixteen have assigned a buy rating to the stock. The company has a consensus rating of Buy and a consensus target price of $ 103.50.
Electronic Arts (EA) opened at 110.46 on Wednesday. The company has a market capitalization of $ 34.25 billion, a price-to-earnings ratio of 35.86 and a beta of 0.65. Electronic Arts has a 12 month low of $ 71.01 and a 12 month high of $ 116.04. The stock’s 50 day moving average price is $ 104.93 and its 200 day moving average price is $ 89.42.
Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Tuesday, May 9th. The game software company reported $ 0.58 earnings per share for the quarter, missing the consensus estimate of $ 0.61 by $ 0.03. The company had revenue of $ 1.53 billion for the quarter, compared to analyst estimates of $ 1.09 billion. Electronic Arts had a return on equity of 27.22% and a net margin of 28.10%. Electronic Arts’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same period in the prior year, the business posted $ 0.50 earnings per share. Equities research analysts anticipate that Electronic Arts will post $ 4.22 earnings per share for the current fiscal year.
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In other news, CEO Andrew Wilson sold 8,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 1st. The shares were sold at an average price of $ 114.32, for a total transaction of $ 914,560.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jacob J. Schatz sold 2,200 shares of the firm’s stock in a transaction that occurred on Monday, March 20th. The stock was sold at an average price of $ 88.80, for a total transaction of $ 195,360.00. Following the sale, the senior vice president now owns 20,980 shares of the company’s stock, valued at approximately $ 1,863,024. The disclosure for this sale can be found here. Insiders sold a total of 297,828 shares of company stock worth $ 29,899,653 over the last three months. Corporate insiders own 3.46% of the company’s stock.
Several hedge funds have recently made changes to their positions in EA. Vanguard Group Inc. increased its stake in shares of Electronic Arts by 8.8% in the first quarter. Vanguard Group Inc. now owns 29,631,771 shares of the game software company’s stock worth $ 2,652,637,000 after buying an additional 2,394,314 shares in the last quarter. BlackRock Inc. increased its stake in shares of Electronic Arts by 3,420.8% in the first quarter. BlackRock Inc. now owns 20,764,484 shares of the game software company’s stock worth $ 1,858,837,000 after buying an additional 20,174,721 shares in the last quarter. State Street Corp increased its stake in shares of Electronic Arts by 2.8% in the first quarter. State Street Corp now owns 11,886,458 shares of the game software company’s stock worth $ 1,064,069,000 after buying an additional 318,704 shares in the last quarter. Ameriprise Financial Inc. increased its stake in shares of Electronic Arts by 24.8% in the first quarter. Ameriprise Financial Inc. now owns 9,443,219 shares of the game software company’s stock worth $ 845,359,000 after buying an additional 1,877,351 shares in the last quarter. Finally, Lone Pine Capital LLC increased its stake in shares of Electronic Arts by 9.3% in the fourth quarter. Lone Pine Capital LLC now owns 9,422,175 shares of the game software company’s stock worth $ 742,091,000 after buying an additional 803,155 shares in 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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