Electronic Arts Inc. (EA) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of Electronic Arts Inc. (NASDAQ:EA) from a buy rating to a hold rating in a research note released on Thursday morning.
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 have also recently weighed in on the stock. Goldman Sachs Group, Inc. (The) initiated coverage on shares of Electronic Arts in a research note on Friday, September 8th. They set a buy rating and a $136.00 price objective on the stock. Piper Jaffray Companies reaffirmed a buy rating and set a $128.00 price objective on shares of Electronic Arts in a research note on Thursday, October 12th. BidaskClub raised shares of Electronic Arts from a buy rating to a strong-buy rating in a research note on Friday, September 1st. Cowen and Company reaffirmed a hold rating and set a $106.00 price objective on shares of Electronic Arts in a research note on Friday, September 8th. Finally, Stifel Nicolaus reaffirmed a buy rating and set 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 issued a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of Buy and a consensus price target of $123.38.
Electronic Arts (NASDAQ:EA) traded up $0.51 during trading hours on Thursday, reaching $113.20. 2,859,092 shares of the company traded hands, compared to its average volume of 3,338,386. The company has a quick ratio of 3.01, a current ratio of 2.38 and a debt-to-equity ratio of 0.23. The stock has a market cap of $34,948.01, a price-to-earnings ratio of 29.10, a price-to-earnings-growth ratio of 1.86 and a beta of 0.65.
In other Electronic Arts news, CFO Blake J. Jorgensen sold 10,000 shares of Electronic Arts stock in a transaction dated 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 completion of the sale, the chief financial officer now owns 209,614 shares in the company, valued at approximately $24,158,013.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lawrence F. Probst III sold 68,072 shares of Electronic Arts stock in a transaction dated Wednesday, August 16th. The stock was sold at an average price of $118.83, for a total transaction of $8,088,995.76. Following the completion of the sale, the director now owns 176,348 shares of the company’s stock, valued at approximately $20,955,432.84. The disclosure for this sale can be found here. Insiders have sold a total of 190,596 shares of company stock valued at $22,661,081 in the last ninety days. 2.55% of the stock is currently owned by insiders.
Several large investors have recently modified their holdings of the company. Suffolk Capital Management LLC acquired a new position in shares of Electronic Arts in the 3rd quarter valued at approximately $13,373,000. FDx Advisors Inc. raised its position in shares of Electronic Arts by 27.3% in the 3rd quarter. FDx Advisors Inc. now owns 5,014 shares of the game software company’s stock valued at $592,000 after buying an additional 1,075 shares in the last quarter. Candriam Luxembourg S.C.A. raised its position in shares of Electronic Arts by 144.2% in the 3rd quarter. Candriam Luxembourg S.C.A. now owns 46,335 shares of the game software company’s stock valued at $5,470,000 after buying an additional 27,359 shares in the last quarter. Bessemer Group Inc. raised its position in shares of Electronic Arts by 144.5% in the 3rd quarter. Bessemer Group Inc. now owns 1,325 shares of the game software company’s stock valued at $157,000 after buying an additional 783 shares in the last quarter. Finally, GHP Investment Advisors Inc. acquired a new position in shares of Electronic Arts in the 3rd quarter valued at approximately $202,000. Institutional investors own 94.45% 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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