Zacks Investment Research downgraded shares of Electronic Arts Inc. (NASDAQ:EA) from a buy rating to a hold rating in a research report sent to investors 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 equities analysts also recently commented on EA. Mizuho restated a buy rating and issued a $84.00 price target on shares of Electronic Arts in a research note on Wednesday, August 3rd. Jefferies Group reaffirmed a buy rating on shares of Electronic Arts in a research report on Monday, July 11th. Oppenheimer Holdings Inc. reaffirmed an outperform rating and set a $88.00 price objective on shares of Electronic Arts in a research report on Wednesday, August 3rd. Barclays PLC lifted their price objective on shares of Electronic Arts from $82.00 to $88.00 and gave the stock an overweight rating in a research report on Wednesday, August 3rd. Finally, Vetr raised shares of Electronic Arts from a sell rating to a buy rating and set a $80.46 price objective for the company in a research report on Wednesday, June 22nd. Five investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company. The company has an average rating of Buy and an average price target of $88.59.
Electronic Arts (NASDAQ:EA) opened at 83.81 on Tuesday. Electronic Arts has a 52-week low of $53.01 and a 52-week high of $86.07. The firm has a market capitalization of $25.21 billion, a P/E ratio of 23.61 and a beta of 0.63. The company has a 50 day moving average price of $82.93 and a 200 day moving average price of $75.04.
Electronic Arts (NASDAQ:EA) last posted its earnings results on Tuesday, August 2nd. The game software company reported $0.07 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.02) by $0.09. Electronic Arts had a net margin of 25.85% and a return on equity of 24.97%. The firm earned $682 million during the quarter, compared to the consensus estimate of $652.64 million. During the same quarter last year, the firm earned $0.15 EPS. The firm’s revenue for the quarter was down 1.6% on a year-over-year basis. On average, equities analysts forecast that Electronic Arts will post $3.64 EPS for the current fiscal year.
In other Electronic Arts news, CEO Andrew Wilson sold 8,000 shares of the company’s stock in a transaction dated Monday, August 1st. The shares were sold at an average price of $76.47, for a total value of $611,760.00. Following the sale, the chief executive officer now owns 248,581 shares of the company’s stock, valued at $19,008,989.07. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Blake J. Jorgensen sold 10,100 shares of the company’s stock in a transaction dated Thursday, July 21st. The shares were sold at an average price of $76.44, for a total transaction of $772,044.00. Following the completion of the sale, the chief financial officer now directly owns 109,700 shares in the company, valued at approximately $8,385,468. The disclosure for this sale can be found here. Company insiders own 3.46% of the company’s stock.
Several hedge funds have recently made changes to their positions in the stock. Archford Capital Strategies LLC increased its position 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 valued at $110,000 after buying an additional 1,351 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new position in shares of Electronic Arts during the second quarter valued at about $168,000. SSI Investment Management Inc. purchased a new position in shares of Electronic Arts during the second quarter valued at about $200,000. Stratos Wealth Partners LTD. purchased a new position in shares of Electronic Arts during the second quarter valued at about $202,000. Finally, Wetherby Asset Management Inc. purchased a new position in shares of Electronic Arts during the second quarter valued at about $239,000.
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.