Zacks Investment Research Downgrades Electronic Arts Inc. (EA) to Hold
Electronic Arts Inc. (NASDAQ:EA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Electronic Arts' reported second quarter fiscal 2018 results wherein earnings came in ahead of the Zacks Consensus Estimate. Revenues registered strong year over year growth driven by continued increases in digital sales and strength in franchises like Battlefield, Star Wars, and EA Sports titles like FIFA & Madden bodes well for the company. Moreover, growing revenues from live services has emerged as a big growth catalyst for EA. In the current quarter, management is slated to release Star Wars Battlefront II. Star Wars is expected to drive topline in the quarter given the holiday season. Despite a big release, EA has given a tepid outlook for the current quarter. Net bookings are expected to be 3% lower than the year-ago figure as growth in live services are expected to be marred by several product launches.The hit driven and competitive nature of video game industry begets caution.”
Several other analysts also recently issued reports on the stock. Goldman Sachs Group, Inc. (The) initiated coverage on shares of Electronic Arts in a research note on Friday, September 8th. They issued a “buy” rating and a $136.00 price objective for the company. BidaskClub raised shares of Electronic Arts from a “buy” rating to a “strong-buy” rating in a research note on Friday, September 1st. Piper Jaffray Companies reissued a “buy” rating and issued a $128.00 price objective on shares of Electronic Arts in a research note on Thursday, October 12th. Cowen and Company reissued a “hold” rating and issued a $106.00 price objective on shares of Electronic Arts in a research note on Friday, September 8th. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $127.00 price objective on shares of Electronic Arts in a research note on Friday, October 6th. Five research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $122.75.
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In other Electronic Arts news, CFO Blake J. Jorgensen sold 10,000 shares of Electronic Arts stock in a transaction on Thursday, August 10th. The shares were sold at an average price of $115.25, for a total value of $1,152,500.00. Following the transaction, the chief financial officer now directly owns 209,614 shares of the company’s stock, valued at $24,158,013.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Wilson sold 10,058 shares of Electronic Arts stock in a transaction on Friday, September 1st. The stock was sold at an average price of $119.56, for a total transaction of $1,202,534.48. The disclosure for this sale can be found here. Over the last three months, insiders have sold 179,038 shares of company stock worth $21,345,710. 2.55% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC grew its holdings in Electronic Arts by 0.7% in the second quarter. FMR LLC now owns 30,692,180 shares of the game software company’s stock worth $3,244,778,000 after purchasing an additional 205,768 shares during the last quarter. Northern Trust Corp grew its holdings in Electronic Arts by 1.2% in the second quarter. Northern Trust Corp now owns 3,431,740 shares of the game software company’s stock worth $362,804,000 after purchasing an additional 40,722 shares during the last quarter. American Century Companies Inc. grew its holdings in Electronic Arts by 7.8% in the third quarter. American Century Companies Inc. now owns 2,712,104 shares of the game software company’s stock worth $320,191,000 after purchasing an additional 196,228 shares during the last quarter. Renaissance Technologies LLC grew its holdings in Electronic Arts by 928.4% in the second quarter. Renaissance Technologies LLC now owns 2,586,064 shares of the game software company’s stock worth $273,399,000 after purchasing an additional 2,334,600 shares during the last quarter. Finally, TIAA CREF Investment Management LLC grew its holdings in Electronic Arts by 12.9% in the second quarter. TIAA CREF Investment Management LLC now owns 1,741,644 shares of the game software company’s stock worth $184,127,000 after purchasing an additional 199,073 shares during the last quarter. 94.45% of the stock is currently owned by institutional investors and hedge funds.
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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