Electronic Arts Inc. (EA) Lifted to “Strong-Buy” at Zacks Investment Research
Electronic Arts Inc. (NASDAQ:EA) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $95.00 price target on the game software company’s stock. Zacks Investment Research’s price objective would suggest a potential upside of 15.03% from the stock’s previous close.
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. “
EA has been the subject of a number of other reports. Vetr raised shares of Electronic Arts from a “sell” rating to a “buy” rating and set a $80.46 price target for the company in a report on Wednesday, June 22nd. MKM Partners upped their price target on shares of Electronic Arts from $87.00 to $88.00 and gave the company a “buy” rating in a report on Wednesday, August 3rd. Cowen and Company reissued an “outperform” rating and issued a $83.00 price target on shares of Electronic Arts in a report on Tuesday, August 23rd. Oppenheimer Holdings Inc. reissued an “outperform” rating and issued a $88.00 price target on shares of Electronic Arts in a report on Wednesday, August 3rd. Finally, Bank of America Corp. reissued a “buy” rating on shares of Electronic Arts in a report on Friday, September 16th. Four analysts have rated the stock with a hold rating, seventeen have given a buy rating and two have assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $89.02.
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Shares of Electronic Arts (NASDAQ:EA) opened at 82.59 on Monday. Electronic Arts has a one year low of $53.01 and a one year high of $86.07. The stock’s 50 day moving average is $83.09 and its 200-day moving average is $75.63. The stock has a market capitalization of $24.84 billion, a P/E ratio of 23.26 and a beta of 0.63.
Electronic Arts (NASDAQ:EA) last posted its quarterly earnings data on Tuesday, August 2nd. The game software company reported $0.07 earnings per share for the quarter, topping the consensus estimate of ($0.02) by $0.09. The business earned $682 million during the quarter, compared to the consensus estimate of $652.64 million. Electronic Arts had a net margin of 25.85% and a return on equity of 24.97%. The company’s quarterly revenue was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.15 earnings per share. On average, equities research analysts expect that Electronic Arts will post $3.64 EPS for the current year.
In other news, CFO Blake J. Jorgensen sold 10,100 shares of the firm’s stock in a transaction on Thursday, July 21st. The stock was sold at an average price of $76.44, for a total value 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 $8,385,468. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Andrew Wilson sold 8,000 shares of the firm’s stock in a transaction on Monday, August 1st. The shares were sold at an average price of $76.47, for a total value of $611,760.00. Following the completion of the sale, the chief executive officer now owns 248,581 shares of the company’s stock, valued at $19,008,989.07. The disclosure for this sale can be found here. 3.46% of the stock is owned by corporate insiders.
Several hedge funds have recently made changes to their positions in the stock. FMR LLC raised its stake in shares of Electronic Arts by 13.6% in the second quarter. FMR LLC now owns 29,807,407 shares of the game software company’s stock worth $2,258,208,000 after buying an additional 3,570,117 shares during the period. Vanguard Group Inc. boosted its position in Electronic Arts by 0.8% in the second quarter. Vanguard Group Inc. now owns 26,751,707 shares of the game software company’s stock valued at $2,026,708,000 after buying an additional 202,429 shares in the last quarter. Jackson Square Partners LLC boosted its position in Electronic Arts by 14.3% in the first quarter. Jackson Square Partners LLC now owns 12,098,912 shares of the game software company’s stock valued at $885,415,000 after buying an additional 1,509,427 shares in the last quarter. Ameriprise Financial Inc. boosted its position in Electronic Arts by 2.2% in the second quarter. Ameriprise Financial Inc. now owns 11,877,969 shares of the game software company’s stock valued at $899,870,000 after buying an additional 254,752 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. boosted its position in Electronic Arts by 2.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 8,194,060 shares of the game software company’s stock valued at $620,782,000 after buying an additional 191,899 shares in the last quarter.
Electronic Arts Company Profile
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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