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 research firms have also issued reports on EA. KeyCorp reissued a “buy” rating and set a $134.00 target price on shares of Electronic Arts in a research note on Friday, August 25th. Jefferies Group LLC reissued a “buy” rating and set a $135.00 target price on shares of Electronic Arts in a research note on Thursday, August 31st. Barclays PLC started coverage on shares of Electronic Arts in a research note on Wednesday, October 4th. They set an “overweight” rating and a $129.00 target price on the stock. Bank of America Corporation raised shares of Electronic Arts from a “neutral” rating to a “buy” rating and set a $131.00 target price on the stock in a research note on Wednesday, July 26th. Finally, Stifel Nicolaus reissued a “buy” rating on shares of Electronic Arts in a research note on Monday, July 17th. Five research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has issued a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $122.75.
In other Electronic Arts news, Director Lawrence F. Probst III sold 68,072 shares of the firm’s stock in a transaction that occurred on Wednesday, August 16th. The shares were sold at an average price of $118.83, for a total value of $8,088,995.76. Following the completion of the transaction, the director now owns 176,348 shares of the company’s stock, valued at approximately $20,955,432.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jacob J. Schatz sold 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 20th. The shares were sold at an average price of $120.77, for a total transaction of $120,770.00. The disclosure for this sale can be found here. Insiders have sold a total of 179,038 shares of company stock valued at $21,345,710 in the last ninety days. 2.55% of the stock is currently owned by corporate insiders.
Hedge funds have recently modified their holdings of the business. D. Scott Neal Inc. purchased a new position in Electronic Arts in the 2nd quarter valued at approximately $120,000. Tower Research Capital LLC TRC lifted its position in shares of 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 last quarter. Dupont Capital Management Corp purchased a new stake in shares of Electronic Arts during the 3rd quarter worth $183,000. Captrust Financial Advisors purchased a new stake in shares of Electronic Arts during the 2nd quarter worth $195,000. Finally, Ray Gerald L & Associates Ltd. purchased a new stake in shares of Electronic Arts during the 3rd quarter worth $208,000. 94.45% of the stock is owned by institutional investors.
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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