Zacks Investment Research Lowers Activision Blizzard (ATVI) to Hold

Zacks Investment Research cut shares of Activision Blizzard (NASDAQ:ATVI) from a buy rating to a hold rating in a research report released on Wednesday.

According to Zacks, “Activision reported encouraging fourth-quarter 2017 results. The company's popularity is primarily driven by its well-known franchises, which will continue to fuel top-line growth. Increasing digital revenues, King Digital buyout and portfolio strength are the key drivers. The company’s attempts to become a broad-based media company are prudent in our view. Apart from launching a movie studio and consumer products division, the company is also strengthening its presence in the lucrative e-sports market. Shares have outperformed the industry in the past year. However, hit driven and competitive nature of the video game industry begets caution.”

A number of other brokerages have also recently issued reports on ATVI. BidaskClub cut Activision Blizzard from a buy rating to a hold rating in a report on Wednesday, December 27th. SunTrust Banks set a $77.00 price objective on Activision Blizzard and gave the stock a buy rating in a report on Wednesday, January 24th. Vetr cut Activision Blizzard from a hold rating to a sell rating and set a $69.79 price objective on the stock. in a report on Monday, January 29th. TheStreet cut Activision Blizzard from a b rating to a c+ rating in a report on Thursday, February 8th. Finally, Wedbush set a $75.00 price objective on Activision Blizzard and gave the stock a buy rating in a report on Thursday, October 26th. Six equities research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of Buy and a consensus target price of $73.08.

Shares of Activision Blizzard (ATVI) opened at $70.19 on Wednesday. The stock has a market capitalization of $51,740.00, a PE ratio of 200.54, a P/E/G ratio of 1.92 and a beta of 1.11. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.77 and a current ratio of 1.78. Activision Blizzard has a 1-year low of $44.60 and a 1-year high of $74.94.

Activision Blizzard (NASDAQ:ATVI) last issued its quarterly earnings data on Thursday, February 8th. The company reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.92 by $0.02. The business had revenue of $2.64 billion for the quarter, compared to analysts’ expectations of $2.55 billion. Activision Blizzard had a return on equity of 17.48% and a net margin of 3.89%. The firm’s quarterly revenue was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.65 EPS. analysts expect that Activision Blizzard will post 2.57 earnings per share for the current fiscal year.

Institutional investors have recently made changes to their positions in the company. Cornerstone Advisors Inc. increased its position in shares of Activision Blizzard by 321.5% during the 3rd quarter. Cornerstone Advisors Inc. now owns 1,547 shares of the company’s stock valued at $100,000 after purchasing an additional 1,180 shares during the last quarter. SeaCrest Wealth Management LLC bought a new position in shares of Activision Blizzard during the 4th quarter valued at about $125,000. Goodman Financial Corp bought a new position in shares of Activision Blizzard during the 4th quarter valued at about $127,000. Grove Bank & Trust increased its position in shares of Activision Blizzard by 261.7% during the 3rd quarter. Grove Bank & Trust now owns 2,170 shares of the company’s stock valued at $140,000 after purchasing an additional 1,570 shares during the last quarter. Finally, Phocas Financial Corp. bought a new position in shares of Activision Blizzard during the 2nd quarter valued at about $173,000. Hedge funds and other institutional investors own 85.61% of the company’s stock.

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About Activision Blizzard

Activision Blizzard, Inc is a developer and publisher of interactive entertainment content and services. The Company develops and distributes content and services across various gaming platforms, including video game consoles, personal computers (PC) and mobile devices. Its segments include Activision Publishing, Inc (Activision), Blizzard Entertainment, Inc (Blizzard), King Digital Entertainment (King) and Other.

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