Zacks Investment Research upgraded shares of Electronic Arts Inc. (NASDAQ:EA) from a hold rating to a strong-buy rating in a research note released on Monday morning. The brokerage currently has $95.00 target price on the game software company’s stock.
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 second 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 analysts also recently commented on EA. Vetr raised shares of Electronic Arts from a sell rating to a buy rating and set a $80.46 target price for the company in a report on Wednesday, June 22nd. Jefferies Group reiterated a buy rating on shares of Electronic Arts in a research note on Monday, July 11th. Stifel Nicolaus reiterated a buy rating and issued a $80.00 price objective on shares of Electronic Arts in a research note on Tuesday, July 12th. Macquarie reiterated an outperform rating and issued a $80.00 price objective on shares of Electronic Arts in a research note on Friday, July 22nd. Finally, Piper Jaffray Cos. lifted their price objective on shares of Electronic Arts from $87.00 to $88.00 and gave the stock an overweight rating in a research note on Wednesday, August 3rd. Four investment analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating to the company. The stock currently has a consensus rating of Buy and an average target price of $89.02.
Electronic Arts (NASDAQ:EA) traded up 2.02% on Monday, reaching $83.98. 169,017 shares of the company traded hands. The firm has a market cap of $25.26 billion, a P/E ratio of 23.66 and a beta of 0.63. Electronic Arts has a 52-week low of $53.01 and a 52-week high of $86.07. The stock has a 50-day moving average price of $83.12 and a 200-day moving average price of $75.88.
Electronic Arts (NASDAQ:EA) last announced its quarterly earnings data on Tuesday, August 2nd. The game software company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of ($0.02) by $0.09. Electronic Arts had a net margin of 25.85% and a return on equity of 24.97%. The company earned $682 million during the quarter, compared to the consensus estimate of $652.64 million. During the same quarter last year, the firm posted $0.15 EPS. The company’s quarterly revenue was down 1.6% on a year-over-year basis. Analysts anticipate that Electronic Arts will post $3.64 earnings per share for the current fiscal year.
In other Electronic Arts news, EVP Joel Linzner sold 8,000 shares of the company’s stock in a transaction on Monday, October 3rd. The shares were sold at an average price of $85.34, for a total transaction of $682,720.00. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Peter R. Moore sold 10,000 shares of the company’s stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $83.81, for a total transaction of $838,100.00. The disclosure for this sale can be found here. Corporate insiders own 3.46% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Menta Capital LLC acquired a new position in Electronic Arts during the first quarter valued at $450,000. Aviva PLC increased its position in Electronic Arts by 0.4% in the first quarter. Aviva PLC now owns 191,904 shares of the game software company’s stock valued at $12,687,000 after buying an additional 786 shares during the last quarter. BB&T Securities LLC acquired a new position in Electronic Arts during the first quarter valued at $406,000. Pegasus Partners Ltd. acquired a new position in Electronic Arts during the first quarter valued at $637,000. Finally, Riverhead Capital Management LLC increased its position in Electronic Arts by 478.4% in the first quarter. Riverhead Capital Management LLC now owns 307,111 shares of the game software company’s stock valued at $20,304,000 after buying an additional 254,017 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.