Electronic Arts (NASDAQ:EA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “EA’s decision to push back the release of Battlefield V, one of its highly anticipated games, may have an impact on its fiscal 2019 results. Notably, the company reduced its net bookings expectation from $5.55 billion to $5.2 billion. Additionally, intensifying competition from the likes of Activision and Take-Two Interactive is expected to hurt market share expansion. Moreover, Activision’s effort to make its content easily available by striking deals with the likes of Amazon, Disney and Twitter does not bode well. Its shares have underperformed the industry on a year-to-date basis. However, EA’s solid slate of new releases — FIFA 19 in late September, Battlefield V in November and Anthem in February 2019 — presents significant growth opportunities. Moreover, the company’s award-winning portfolio of games is expected to give it a competitive advantage.”

A number of other equities analysts have also recently issued reports on the company. Credit Suisse Group upped their target price on Electronic Arts from $143.00 to $155.00 and gave the stock an “outperform” rating in a report on Wednesday, July 25th. BidaskClub cut Electronic Arts from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 25th. Piper Jaffray Companies upped their target price on Electronic Arts to $165.00 and gave the stock an “overweight” rating in a report on Wednesday, July 25th. Wedbush reaffirmed a “buy” rating and issued a $158.00 target price on shares of Electronic Arts in a report on Monday, July 23rd. Finally, Argus raised Electronic Arts from a “hold” rating to a “buy” rating in a report on Wednesday, August 1st. One analyst has rated the stock with a sell rating, six have given a hold rating, twenty-one have given a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus target price of $142.48.

Electronic Arts stock opened at $119.38 on Wednesday. The company has a quick ratio of 3.84, a current ratio of 3.84 and a debt-to-equity ratio of 0.19. Electronic Arts has a 52 week low of $99.63 and a 52 week high of $151.26. The firm has a market cap of $36.00 billion, a PE ratio of 31.41, a price-to-earnings-growth ratio of 2.02 and a beta of 0.55.

Electronic Arts (NASDAQ:EA) last posted its quarterly earnings results on Thursday, July 26th. The game software company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.19. Electronic Arts had a return on equity of 25.31% and a net margin of 14.30%. The company had revenue of $749.00 million during the quarter, compared to analysts’ expectations of $742.86 million. During the same quarter in the previous year, the firm earned $2.06 EPS. Electronic Arts’s revenue was down 3.4% on a year-over-year basis. research analysts forecast that Electronic Arts will post 3.89 EPS for the current year.

In other Electronic Arts news, insider Patrick Soderlund sold 5,000 shares of the company’s stock in a transaction dated Monday, July 2nd. The stock was sold at an average price of $142.22, for a total value of $711,100.00. Following the sale, the insider now owns 97,600 shares in the company, valued at approximately $13,880,672. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Jacob J. Schatz sold 1,000 shares of the company’s stock in a transaction dated Thursday, September 20th. The shares were sold at an average price of $113.42, for a total value of $113,420.00. Following the completion of the sale, the general counsel now owns 18,029 shares in the company, valued at approximately $2,044,849.18. The disclosure for this sale can be found here. Insiders sold a total of 121,250 shares of company stock worth $15,423,980 in the last quarter. Corporate insiders own 2.24% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kaizen Advisory LLC boosted its position in shares of Electronic Arts by 159.5% during the 2nd quarter. Kaizen Advisory LLC now owns 763 shares of the game software company’s stock valued at $108,000 after purchasing an additional 469 shares in the last quarter. Alpha Windward LLC bought a new stake in shares of Electronic Arts during the 2nd quarter valued at about $113,000. Private Capital Group LLC boosted its position in shares of Electronic Arts by 781.5% during the 1st quarter. Private Capital Group LLC now owns 952 shares of the game software company’s stock valued at $115,000 after purchasing an additional 844 shares in the last quarter. Sun Life Financial INC boosted its position in shares of Electronic Arts by 389.4% during the 2nd quarter. Sun Life Financial INC now owns 832 shares of the game software company’s stock valued at $117,000 after purchasing an additional 662 shares in the last quarter. Finally, Wealthcare Advisory Partners LLC boosted its position in shares of Electronic Arts by 33,333.3% during the 1st quarter. Wealthcare Advisory Partners LLC now owns 1,003 shares of the game software company’s stock valued at $122,000 after purchasing an additional 1,000 shares in the last quarter. Hedge funds and other institutional investors own 92.88% of the company’s stock.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v.

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