Zacks Investment Research upgraded shares of Electronic Arts (NASDAQ:EA) from a sell rating to a hold rating in a research report report published on Monday.
According to Zacks, “Electronic Arts' reported a solid fourth-quarter fiscal 2018 results wherein both earnings and revenues beat estimates and improved year over year. Strength in digital business backed by live services and mobile games remain a key growth driver. EA has been the primary beneficiary of the ongoing shift from physical to digital versions of video games. The company expects the digital business to continue to remain a tailwind. Shares have outperformed the industry in the past year. However, the hit driven and competitive nature of video game industry begets caution. Rise in operating expense, mainly due to higher investments in games and live services, is an overhang on the bottom line.”
A number of other equities analysts have also weighed in on the company. BidaskClub upgraded Electronic Arts from a hold rating to a buy rating in a research note on Saturday, May 12th. Barclays reiterated a buy rating and set a $139.00 target price on shares of Electronic Arts in a research note on Wednesday, May 9th. MKM Partners increased their target price on Electronic Arts to $144.00 and gave the stock a buy rating in a research note on Wednesday, May 9th. Oppenheimer increased their target price on Electronic Arts from $130.00 to $140.00 and gave the stock an outperform rating in a research note on Wednesday, May 9th. Finally, Wedbush set a $158.00 target price on Electronic Arts and gave the stock a buy rating in a research note on Wednesday, May 9th. Four equities research analysts have rated the stock with a hold rating, twenty-three have assigned a buy rating and one has assigned a strong buy rating to the stock. Electronic Arts currently has a consensus rating of Buy and a consensus target price of $139.92.
Shares of NASDAQ EA opened at $130.81 on Monday. The company has a market cap of $40.14 billion, a PE ratio of 32.31, a PEG ratio of 2.05 and a beta of 0.82. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.92 and a current ratio of 2.41. Electronic Arts has a 1-year low of $129.98 and a 1-year high of $131.06.
In related news, CEO Andrew Wilson sold 9,000 shares of the stock in a transaction that occurred on Thursday, March 1st. The stock was sold at an average price of $122.94, for a total transaction of $1,106,460.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Joel Linzner sold 6,000 shares of the firm’s stock in a transaction on Thursday, May 10th. The shares were sold at an average price of $131.72, for a total value of $790,320.00. Following the completion of the sale, the executive vice president now directly owns 18,340 shares in the company, valued at approximately $2,415,744.80. The disclosure for this sale can be found here. Insiders have sold 79,754 shares of company stock worth $9,753,988 in the last three months. 2.55% of the stock is currently owned by company insiders.
Hedge funds have recently modified their holdings of the business. Private Capital Group LLC boosted its holdings in shares of Electronic Arts by 781.5% in the 1st quarter. Private Capital Group LLC now owns 952 shares of the game software company’s stock valued at $115,000 after purchasing an additional 844 shares in the last quarter. Wealthcare Advisory Partners LLC boosted its holdings in shares of Electronic Arts by 33,333.3% in the 1st quarter. Wealthcare Advisory Partners LLC now owns 1,003 shares of the game software company’s stock valued at $122,000 after purchasing an additional 1,000 shares in the last quarter. Cerebellum GP LLC acquired a new stake in shares of Electronic Arts in the 4th quarter valued at $129,000. First Bank & Trust bought a new position in shares of Electronic Arts in the 4th quarter valued at $134,000. Finally, Archford Capital Strategies LLC bought a new position in shares of Electronic Arts in the 1st quarter valued at $138,000. 94.74% of the stock is currently owned by hedge funds and other institutional investors.
About Electronic Arts
Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, personal computers, mobile phones, and tablets worldwide. It develops and publishes games primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars, as well as publishes and distributes games developed by third parties.
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