Electronic Arts (NASDAQ:EA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Friday, February 2nd.
According to Zacks, “Electronic Arts' reported third-quarter fiscal 2018 results wherein revenues improved on a year-over- year basis but earnings declined. However, net bookings (including deferred revenues) comparisons were not favorable. Underperformance of Star Wars Battlefront 2 compared to Battlefield 1 launched in the year-ago quarter was a dampener. Rise in operating expense mainly due to higher investments in games and live services continued to weigh on the bottom line. However, EA has been the primary beneficiary of the ongoing shift from physical to digital versions of video games. EA continues to benefit from its popular franchises, especially Battlefield and FIFA. Strength in digital business backed by live services and mobile games is a key growth driver. Shares have outperformed the industry in the past year.”
Several other equities research analysts also recently commented on the company. Goldman Sachs Group downgraded Electronic Arts from a “conviction-buy” rating to a “buy” rating in a report on Tuesday, December 12th. Oppenheimer restated a “buy” rating on shares of Electronic Arts in a report on Friday, November 17th. Vetr downgraded Electronic Arts from a “strong-buy” rating to a “buy” rating and set a $121.82 price objective on the stock. in a report on Wednesday, November 29th. Barclays dropped their price objective on Electronic Arts from $129.00 to $127.00 and set an “overweight” rating on the stock in a report on Wednesday, November 1st. Finally, KeyCorp restated a “buy” rating and set a $134.00 price objective on shares of Electronic Arts in a report on Sunday, November 19th. Seven analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. Electronic Arts has an average rating of “Buy” and a consensus price target of $130.34.
Electronic Arts (NASDAQ:EA) last announced its earnings results on Tuesday, January 30th. The game software company reported $2.06 EPS for the quarter, beating the consensus estimate of $2.03 by $0.03. The business had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $2.02 billion. Electronic Arts had a return on equity of 25.42% and a net margin of 19.67%. equities analysts expect that Electronic Arts will post 3.66 earnings per share for the current fiscal year.
In related news, CFO Blake J. Jorgensen sold 10,500 shares of the business’s stock in a transaction that occurred on Tuesday, January 9th. The stock was sold at an average price of $112.85, for a total transaction of $1,184,925.00. Following the completion of the transaction, the chief financial officer now owns 159,114 shares in the company, valued at approximately $17,956,014.90. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Andrew Wilson sold 10,058 shares of the business’s stock in a transaction that occurred on Friday, December 1st. The shares were sold at an average price of $105.76, for a total value of $1,063,734.08. The disclosure for this sale can be found here. Insiders sold a total of 67,158 shares of company stock valued at $7,546,309 over the last quarter. Company insiders own 2.55% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in EA. Egerton Capital UK LLP acquired a new position in Electronic Arts during the 4th quarter valued at approximately $184,412,000. Flossbach Von Storch AG acquired a new position in Electronic Arts during the 4th quarter valued at approximately $139,782,000. Assenagon Asset Management S.A. acquired a new position in Electronic Arts during the 3rd quarter valued at approximately $148,789,000. Old Mutual Global Investors UK Ltd. boosted its position in Electronic Arts by 161.6% during the 4th quarter. Old Mutual Global Investors UK Ltd. now owns 1,542,907 shares of the game software company’s stock valued at $162,097,000 after purchasing an additional 953,148 shares during the period. Finally, BlackRock Inc. boosted its position in Electronic Arts by 4.4% during the 4th quarter. BlackRock Inc. now owns 21,297,293 shares of the game software company’s stock valued at $2,237,493,000 after purchasing an additional 904,557 shares during the period. Institutional investors and hedge funds own 92.63% of the company’s stock.
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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