Electronic Arts Inc. (EA) Downgraded to Hold at Zacks Investment Research
Electronic Arts Inc. (NASDAQ:EA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released 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. “
A number of other research analysts have also weighed in on EA. Mizuho reaffirmed a “buy” rating and set a $84.00 target price on shares of Electronic Arts in a report on Wednesday, August 3rd. Jefferies Group reaffirmed a “buy” rating on shares of Electronic Arts in a report on Monday, July 11th. Oppenheimer Holdings Inc. reaffirmed an “outperform” rating and set a $88.00 target price on shares of Electronic Arts in a report on Wednesday, August 3rd. Barclays PLC lifted their target price on Electronic Arts from $82.00 to $88.00 and gave the company an “overweight” rating in a report on Wednesday, August 3rd. Finally, Vetr raised 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. Five research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $88.59.
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Electronic Arts (NASDAQ:EA) opened at 83.81 on Tuesday. Electronic Arts has a 12 month low of $53.01 and a 12 month high of $86.07. The stock has a 50 day moving average of $82.93 and a 200 day moving average of $75.04. The company has a market capitalization of $25.21 billion, a price-to-earnings ratio of 23.61 and a beta of 0.63.
Electronic Arts (NASDAQ:EA) last announced its quarterly earnings data on Tuesday, August 2nd. The game software company reported $0.07 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.02) by $0.09. Electronic Arts had a return on equity of 24.97% and a net margin of 25.85%. The business had revenue of $682 million for the quarter, compared to analysts’ expectations of $652.64 million. During the same period in the previous year, the business posted $0.15 EPS. The firm’s quarterly revenue was down 1.6% compared to the same quarter last year. Equities analysts anticipate that Electronic Arts will post $3.64 EPS for the current fiscal year.
In other news, EVP Joel Linzner sold 8,000 shares of the stock in a transaction on Monday, October 3rd. The stock was sold at an average price of $85.34, for a total value of $682,720.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Kenneth A. Barker sold 15,909 shares of the stock in a transaction on Friday, August 19th. The stock was sold at an average price of $81.39, for a total value of $1,294,833.51. The disclosure for this sale can be found here. 3.46% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in EA. Copper Rock Capital Partners LLC boosted its stake in Electronic Arts by 31.2% in the third quarter. Copper Rock Capital Partners LLC now owns 8,823 shares of the game software company’s stock worth $743,000 after buying an additional 2,098 shares in the last quarter. BNP Paribas Arbitrage SA boosted its stake in Electronic Arts by 54.5% in the third quarter. BNP Paribas Arbitrage SA now owns 257,786 shares of the game software company’s stock worth $22,015,000 after buying an additional 90,903 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in Electronic Arts during the second quarter worth approximately $923,000. Kentucky Retirement Systems bought a new stake in Electronic Arts during the second quarter worth approximately $1,943,000. Finally, Mason Street Advisors LLC bought a new stake in Electronic Arts during the second quarter worth approximately $3,078,000.
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.
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