Zacks Investment Research downgraded shares of Electronic Arts (NASDAQ:EA) from a hold rating to a sell rating in a research note published on Tuesday.
According to Zacks, “Electronic Arts' performance is driven by continuous increase in digital sales and strength in franchises like Battlefield, Star Wars, and EA Sports titles like FIFA & Madden. 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 grow in fiscal 2018 and beyond, primarily on the back of a strong mobile business. Moreover, growing revenues from live services has emerged as a big growth catalyst for EA. However, the hit driven and competitive nature of video game industry begets caution. Shares have underperformed the industry over the past one year.”
Other analysts also recently issued research reports about the stock. Needham & Company LLC reaffirmed a buy rating and issued a $130.00 price target on shares of Electronic Arts in a report on Friday, October 13th. Piper Jaffray Companies reaffirmed a buy rating and issued a $128.00 price target on shares of Electronic Arts in a report on Thursday, October 12th. SunTrust Banks initiated coverage on shares of Electronic Arts in a report on Tuesday, October 10th. They issued a buy rating and a $133.00 price target on the stock. Stifel Nicolaus reaffirmed a buy rating and issued a $127.00 price target on shares of Electronic Arts in a report on Friday, October 6th. Finally, Buckingham Research initiated coverage on shares of Electronic Arts in a report on Wednesday, September 20th. They issued a buy rating and a $143.00 price target on the stock. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and twenty-three have assigned a buy rating to the stock. The company has an average rating of Buy and an average target price of $122.53.
In related news, insider Andrew Wilson sold 10,058 shares of the company’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $113.81, for a total transaction of $1,144,700.98. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Jacob J. Schatz sold 1,000 shares of the company’s stock in a transaction that occurred on Friday, October 20th. The stock was sold at an average price of $113.60, for a total transaction of $113,600.00. Following the transaction, the senior vice president now directly owns 20,950 shares of the company’s stock, valued at approximately $2,379,920. The disclosure for this sale can be found here. In the last three months, insiders sold 57,016 shares of company stock valued at $6,172,470. Company insiders own 2.55% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC increased its position in Electronic Arts by 310.8% during the second 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. Bessemer Group Inc. increased its position in Electronic Arts by 144.5% during the third quarter. Bessemer Group Inc. now owns 1,325 shares of the game software company’s stock worth $157,000 after purchasing an additional 783 shares during the last quarter. Dupont Capital Management Corp acquired a new position in Electronic Arts during the third quarter worth approximately $183,000. Captrust Financial Advisors acquired a new position in Electronic Arts during the second quarter worth approximately $195,000. Finally, GHP Investment Advisors Inc. acquired a new position in Electronic Arts during the third quarter worth approximately $202,000. 93.51% of the stock is owned by hedge funds and other 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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