Electronic Arts Inc. (EA) Upgraded 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 report issued on Monday. The firm currently has a $95.00 target price on the game software company’s stock. Zacks Investment Research’s price target would indicate 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. “
A number of other equities analysts also recently weighed in on EA. Vetr raised shares of Electronic Arts from a “sell” rating to a “buy” rating and set a $80.46 price target on the stock in a research note on Wednesday, June 22nd. Mizuho restated a “buy” rating and set a $84.00 price target on shares of Electronic Arts in a report on Wednesday, August 3rd. 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. Jefferies Group restated a “buy” rating on shares of Electronic Arts in a report on Monday, August 1st. Finally, Stifel Nicolaus reiterated a “buy” rating and set a $80.00 price objective on shares of Electronic Arts in a research report on Tuesday, July 12th. Four analysts have rated the stock with a hold rating, seventeen have issued a buy rating and two have issued a strong buy rating to the company’s stock. Electronic Arts currently has a consensus rating of “Buy” and an average target price of $89.02.
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Electronic Arts (NASDAQ:EA) opened at 82.59 on Monday. The firm’s 50-day moving average price is $83.09 and its 200 day moving average price is $75.63. Electronic Arts has a 52-week low of $53.01 and a 52-week high of $86.07. The stock has a market cap of $24.84 billion, a P/E ratio of 23.26 and a beta of 0.63.
Electronic Arts (NASDAQ:EA) last announced its earnings results on Tuesday, August 2nd. The game software company reported $0.07 earnings per share (EPS) for the quarter, beating the 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 company had revenue of $682 million for the quarter, compared to the consensus estimate of $652.64 million. During the same period in the previous year, the business earned $0.15 EPS. The company’s revenue was down 1.6% on a year-over-year basis. Equities analysts predict that Electronic Arts will post $3.64 earnings per share for the current year.
In other news, CEO Andrew Wilson sold 8,000 shares of the business’s stock in a transaction that occurred 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 directly owns 248,581 shares in the company, valued at approximately $19,008,989.07. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Blake J. Jorgensen sold 10,100 shares of the business’s stock in a transaction that occurred on Thursday, July 21st. The stock was 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 owns 109,700 shares of the company’s stock, valued at $8,385,468. The disclosure for this sale can be found here. Company insiders own 3.46% of the company’s stock.
Several large investors have recently made changes to their positions in the company. Jacobs Levy Equity Management Inc. raised its stake in shares of Electronic Arts by 15.7% in the first quarter. Jacobs Levy Equity Management Inc. now owns 295,438 shares of the game software company’s stock worth $19,531,000 after buying an additional 40,070 shares during the last quarter. Envestnet Asset Management Inc. raised its stake in shares of Electronic Arts by 31.4% in the first quarter. Envestnet Asset Management Inc. now owns 72,436 shares of the game software company’s stock worth $4,789,000 after buying an additional 17,292 shares during the last quarter. Zurich Insurance Group Ltd FI raised its stake in shares of Electronic Arts by 16.8% in the first quarter. Zurich Insurance Group Ltd FI now owns 110,463 shares of the game software company’s stock worth $7,303,000 after buying an additional 15,916 shares during the last quarter. National Pension Service raised its stake in shares of Electronic Arts by 3.7% in the first quarter. National Pension Service now owns 219,323 shares of the game software company’s stock worth $14,499,000 after buying an additional 7,883 shares during the last quarter. Finally, Jackson Square Partners LLC raised its stake in shares of 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 worth $885,415,000 after buying an additional 1,509,427 shares during 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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