Zacks Investment Research lowered shares of Electronic Arts Inc. (NASDAQ:EA) from a buy rating to a hold rating in a research note published 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.”
Other analysts have also issued research reports about the company. BidaskClub raised Electronic Arts from a hold rating to a buy rating in a report on Monday, July 24th. KeyCorp reissued a buy rating on shares of Electronic Arts in a report on Sunday, July 30th. Needham & Company LLC reissued a buy rating and set a $130.00 price target on shares of Electronic Arts in a report on Friday, October 13th. Morgan Stanley reissued an overweight rating and set a $128.00 price target (up previously from $126.00) on shares of Electronic Arts in a report on Monday, October 2nd. Finally, Benchmark Co. boosted their price target on Electronic Arts from $136.00 to $142.00 and gave the company a buy rating in a report on Wednesday, September 13th. Five equities research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of Buy and a consensus target price of $123.38.
Electronic Arts (NASDAQ EA) traded down $0.74 during trading on Thursday, reaching $112.46. The company had a trading volume of 3,571,671 shares, compared to its average volume of 3,389,007. The company has a market cap of $34,947.98, a PE ratio of 29.10, a PEG ratio of 1.85 and a beta of 0.65. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.38 and a quick ratio of 3.01.
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In other news, CEO Andrew Wilson sold 10,058 shares of the stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $119.56, for a total value of $1,202,534.48. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, SVP Jacob J. Schatz sold 1,000 shares of the stock in a transaction that occurred on Wednesday, September 20th. The stock was sold at an average price of $120.77, for a total value of $120,770.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 190,596 shares of company stock worth $22,661,081. Company insiders own 2.55% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in EA. D. Scott Neal Inc. purchased a new position in Electronic Arts during the 2nd quarter worth $120,000. Tower Research Capital LLC TRC increased its holdings in Electronic Arts by 310.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,405 shares of the game software company’s stock worth $149,000 after purchasing an additional 1,063 shares during the period. Bessemer Group Inc. increased its holdings in Electronic Arts by 144.5% during the 3rd quarter. Bessemer Group Inc. now owns 1,325 shares of the game software company’s stock worth $157,000 after purchasing an additional 783 shares during the period. Dupont Capital Management Corp purchased a new position in Electronic Arts during the 3rd quarter worth $183,000. Finally, Captrust Financial Advisors purchased a new position in Electronic Arts during the 2nd quarter worth $195,000. Institutional investors own 94.46% of the company’s stock.
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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