Electronic Arts Inc. (EA) Upgraded by Zacks Investment Research to Buy
Electronic Arts Inc. (NASDAQ:EA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The firm currently has a $130.00 price target on the game software company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.22% from the stock’s previous close.
According to Zacks, “Electronic Arts' results continue to be driven by increases in digital revenues and strength in franchises like Star Wars, and EA Sports titles like FIFA 17 and Battlefield. EA has a strong pipeline of new launches that will continue to drive top-line growth. Also, shift to digital/mobile bodes well for the company along with the growing revenues from live services. Shares have outperformed the Zacks industry over the past one year. Estimates have also been stable lately ahead of the company’s Q2 earnings release. The company has mixed record of earnings surprises in recent quarters. However, the hit driven and competitive nature of video game industry begets caution.”
Several other equities analysts have also issued reports on EA. BidaskClub lowered Electronic Arts from a “buy” rating to a “hold” rating in a report on Friday, June 30th. Vetr raised Electronic Arts from a “buy” rating to a “strong-buy” rating and set a $125.00 target price for the company in a report on Tuesday, July 4th. Stifel Nicolaus reaffirmed a “buy” rating on shares of Electronic Arts in a report on Monday, July 17th. Needham & Company LLC started coverage on Electronic Arts in a report on Monday, July 17th. They set a “buy” rating and a $130.00 price objective for the company. Finally, Bank of America Corporation raised Electronic Arts from a “neutral” rating to a “buy” rating and set a $131.00 price objective for the company in a report on Wednesday, July 26th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, twenty-four have given a buy rating and one has issued a strong buy rating to the company. Electronic Arts has a consensus rating of “Buy” and a consensus price target of $122.75.
Shares of Electronic Arts (NASDAQ EA) traded up 0.92% on Friday, hitting $116.89. The stock had a trading volume of 2,892,120 shares. The company has a 50-day moving average of $117.33 and a 200 day moving average of $111.31. The company has a market capitalization of $36.09 billion, a price-to-earnings ratio of 31.30 and a beta of 0.69. Electronic Arts has a 52 week low of $73.74 and a 52 week high of $122.79.
Electronic Arts (NASDAQ:EA) last released its earnings results on Thursday, July 27th. The game software company reported $0.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.22. The company had revenue of $775.00 million during the quarter, compared to analyst estimates of $768.47 million. Electronic Arts had a return on equity of 29.77% and a net margin of 23.31%. Electronic Arts’s quarterly revenue was up 13.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 earnings per share. On average, equities research analysts predict that Electronic Arts will post $4.25 EPS for the current year.
In other Electronic Arts news, SVP Jacob J. Schatz sold 1,000 shares of the business’s stock in a transaction on Wednesday, September 20th. The shares were sold at an average price of $120.77, for a total value of $120,770.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Joel Linzner sold 4,000 shares of the business’s stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $116.96, for a total transaction of $467,840.00. Following the completion of the sale, the executive vice president now owns 18,089 shares in the company, valued at approximately $2,115,689.44. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 198,096 shares of company stock valued at $23,573,936. Company insiders own 2.55% of the company’s stock.
Hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC raised its position in shares of Electronic Arts by 928.4% during the 2nd quarter. Renaissance Technologies LLC now owns 2,586,064 shares of the game software company’s stock valued at $273,399,000 after buying an additional 2,334,600 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in Electronic Arts in the 3rd quarter worth about $148,789,000. Arrowstreet Capital Limited Partnership raised its position in Electronic Arts by 145.2% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,208,784 shares of the game software company’s stock worth $127,793,000 after purchasing an additional 715,862 shares during the period. Janus Henderson Group PLC raised its position in Electronic Arts by 65.0% in the 2nd quarter. Janus Henderson Group PLC now owns 1,425,278 shares of the game software company’s stock worth $150,688,000 after purchasing an additional 561,322 shares during the period. Finally, Parametric Portfolio Associates LLC raised its position in Electronic Arts by 103.7% in the 2nd quarter. Parametric Portfolio Associates LLC now owns 1,012,999 shares of the game software company’s stock worth $107,094,000 after purchasing an additional 515,608 shares during the period. Institutional investors and hedge funds own 94.00% of the company’s stock.
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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