Morgan Stanley Lowers Electronic Arts (EA) Price Target to $111.00

Electronic Arts (NASDAQ:EA) had its price objective cut by equities research analysts at Morgan Stanley from $122.00 to $111.00 in a research note issued to investors on Wednesday. The brokerage currently has an “equal weight” rating on the game software company’s stock. Morgan Stanley’s price objective would indicate a potential upside of 20.67% from the company’s previous close.

EA has been the subject of several other reports. Credit Suisse Group decreased their price objective on shares of Electronic Arts from $127.00 to $126.00 and set an “outperform” rating for the company in a report on Wednesday. Wedbush set a $133.00 price objective on shares of Electronic Arts and gave the company a “buy” rating in a research note on Wednesday. Atlantic Securities cut shares of Electronic Arts from an “overweight” rating to a “neutral” rating and set a $110.00 price objective for the company. in a research note on Wednesday. BidaskClub lowered shares of Electronic Arts from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 25th. Finally, UBS Group lowered their target price on shares of Electronic Arts from $166.00 to $138.00 and set a “buy” rating on the stock in a report on Wednesday. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, twenty-two have given a buy rating and one has given a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and an average target price of $135.96.

Shares of NASDAQ EA traded down $2.84 during midday trading on Wednesday, reaching $91.99. The company’s stock had a trading volume of 517,912 shares, compared to its average volume of 4,970,090. The company has a debt-to-equity ratio of 0.19, a current ratio of 3.84 and a quick ratio of 3.84. Electronic Arts has a one year low of $89.12 and a one year high of $151.26. The company has a market capitalization of $29.33 billion, a P/E ratio of 26.74, a PEG ratio of 1.56 and a beta of 0.58.

Electronic Arts (NASDAQ:EA) last released its quarterly earnings results on Tuesday, October 30th. The game software company reported $0.83 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.37 by $0.46. Electronic Arts had a net margin of 14.30% and a return on equity of 25.31%. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same quarter in the previous year, the business earned $0.62 earnings per share. The firm’s revenue was up 3.6% compared to the same quarter last year. On average, analysts anticipate that Electronic Arts will post 3.89 earnings per share for the current year.

In other news, General Counsel Jacob J. Schatz sold 1,000 shares of Electronic Arts stock in a transaction that occurred on Monday, October 22nd. The shares were sold at an average price of $102.81, for a total value of $102,810.00. Following the sale, the general counsel now directly owns 17,029 shares in the company, valued at $1,750,751.49. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Luis A. Ubinas sold 7,750 shares of Electronic Arts stock in a transaction that occurred on Thursday, August 2nd. The shares were sold at an average price of $128.50, for a total transaction of $995,875.00. Following the completion of the sale, the director now owns 1,191 shares in the company, valued at $153,043.50. The disclosure for this sale can be found here. Insiders have sold a total of 107,250 shares of company stock worth $12,624,655 over the last 90 days. Corporate insiders own 2.24% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Massachusetts Financial Services Co. MA raised its holdings in shares of Electronic Arts by 31.8% in the third quarter. Massachusetts Financial Services Co. MA now owns 9,697,249 shares of the game software company’s stock valued at $1,168,422,000 after purchasing an additional 2,339,158 shares during the last quarter. Egerton Capital UK LLP raised its holdings in shares of Electronic Arts by 79.8% in the second quarter. Egerton Capital UK LLP now owns 4,041,717 shares of the game software company’s stock valued at $569,963,000 after purchasing an additional 1,794,024 shares during the last quarter. Winslow Capital Management LLC raised its holdings in shares of Electronic Arts by 18.5% in the second quarter. Winslow Capital Management LLC now owns 2,888,223 shares of the game software company’s stock valued at $407,298,000 after purchasing an additional 450,216 shares during the last quarter. Standard Life Aberdeen plc grew its stake in shares of Electronic Arts by 12.6% in the second quarter. Standard Life Aberdeen plc now owns 1,891,538 shares of the game software company’s stock valued at $266,765,000 after buying an additional 210,930 shares in the last quarter. Finally, Swedbank grew its stake in shares of Electronic Arts by 9.1% in the third quarter. Swedbank now owns 1,793,297 shares of the game software company’s stock valued at $216,075,000 after buying an additional 148,944 shares in the last quarter. Institutional investors own 93.41% 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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