Brean Capital Reiterates “Buy” Rating for Electronic Arts (EA)
Electronic Arts (NYSE:EA)‘s stock had its “buy” rating reiterated by stock analysts at Brean Capital in a report issued on Wednesday, AnalystRatingsNetwork.com reports.
The analysts wrote, “Electronic Arts announced the appointment of EA Sports head, Andrew Wilson, as CEO. The internal appointment likely comes as a bit of a surprise to investors, with expectations for a higher profile external hire. However, we believe Wilson is uniquely qualified for the role with an obvious passion for gaming and long and successful tenure at EA during which he can be accredited with building out Origin, the company’s online gaming platform, standardizing EA Sports on a single new game engine, Ignite, increasing digital revenue from all of the company’s sports franchises, and most importantly, taking the company’s FIFA franchise to new heights. The 39-year-old Wilson, who will also serve as a director, is charged with leading the company’s drive to push operating margin past 20% after closing F2013 at 10%. We believe Wilson inherits a company already on that path, with a strong pipeline of titles over the next few years and a stable of established IP to leverage. Wilson replaces John Riccitiello who resigned in March, after a rocky reign culminating in a disappointing F2013, during which EA lowered guidance twice.”
Electronic Arts (NYSE:EA) traded down 2.75% during mid-day trading on Wednesday, hitting $26.84. The stock had a trading volume of 1,731,350 shares. Electronic Arts has a one year low of $11.80 and a one year high of $28.13. The stock has a 50-day moving average of $26.89 and a 200-day moving average of $22.28. The company has a market cap of $8.230 billion and a price-to-earnings ratio of 73.40. Electronic Arts also saw unusually large options trading activity on Monday. Stock traders purchased 9,595 put options on the company. This is an increase of approximately 513% compared to the average volume of 1,566 put options.
Electronic Arts (NYSE:EA) last announced its earnings results on Tuesday, July 23rd. The company reported ($0.40) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.60) by $0.20. The company had revenue of $495.00 million for the quarter, compared to the consensus estimate of $453.75 million. During the same quarter in the prior year, the company posted ($0.41) earnings per share. The company’s quarterly revenue was up .8% on a year-over-year basis. Analysts expect that Electronic Arts will post $1.22 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Hilliard Lyons downgraded shares of Electronic Arts (NYSE:EA) from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday, August 14th. Separately, analysts at Benchmark Co. initiated coverage on shares of Electronic Arts (NYSE:EA) in a research note to investors on Friday, August 2nd. They set a “buy” rating and a $30.83 price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Electronic Arts (NYSE:EA) in a research note to investors on Wednesday, July 31st. They now have a $27.00 price target on the stock.
Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and twelve have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $23.24.
Electronic Arts Inc develops, markets, publishes and distributes game software content and services that can be played by consumers on a variety of video game machines and electronic devices (NYSE:EA).
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