Electronic Arts (NASDAQ:EA) Upgraded to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Electronic Arts (NASDAQ:EA) from a hold rating to a buy rating in a research report report published on Friday, Zacks.com reports. Zacks Investment Research currently has $99.00 target price on the game software company’s stock.

According to Zacks, “EA’s first-quarter fiscal 2020 results benefited from core franchise strength, including FIFA, The Sims 4 and Apex Legends. These drove net bookings and live services revenues in the reported quarter. While FIFA Online 4 performed well in Korea and Southeast Asia, FIFA Online 3 outperformed the company’s expectations in China. EA plans to switch to FIFA Online 4 in the country, which is likely to drive adoption. The company has a strong slate of releases in the second quarter of fiscal 2020. Notably, EA’s shares have outperformed the industry on a year-to-date basis. However, intense competition from the likes of Activision and Take-Two Interactive does not bode well for investors in the near term.”

Other equities analysts have also recently issued research reports about the stock. BMO Capital Markets reiterated an outperform rating and set a $130.00 price target (up previously from $116.00) on shares of Electronic Arts in a report on Tuesday, July 2nd. William Blair reissued an outperform rating on shares of Electronic Arts in a report on Tuesday, May 7th. Jefferies Financial Group set a $100.00 target price on shares of Electronic Arts and gave the stock a hold rating in a report on Wednesday, July 31st. Oppenheimer raised their target price on shares of Electronic Arts from $88.00 to $110.00 and gave the stock an outperform rating in a report on Wednesday, May 8th. Finally, Credit Suisse Group raised their target price on shares of Electronic Arts from $110.00 to $115.00 and gave the stock an outperform rating in a report on Wednesday, May 8th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating and twenty have given a buy rating to the company. Electronic Arts has a consensus rating of Buy and an average price target of $113.10.

NASDAQ EA traded down $4.41 during trading hours on Friday, reaching $88.48. The company’s stock had a trading volume of 1,268,863 shares, compared to its average volume of 4,608,611. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.82 and a current ratio of 3.52. The company has a 50-day moving average of $93.25. Electronic Arts has a 52 week low of $73.91 and a 52 week high of $134.00. The company has a market cap of $27.56 billion, a PE ratio of 22.51, a PEG ratio of 2.13 and a beta of 1.01.

Electronic Arts (NASDAQ:EA) last issued its earnings results on Tuesday, May 7th. The game software company reported $1.21 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.78 by $0.43. Electronic Arts had a net margin of 42.75% and a return on equity of 19.63%. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter last year, the company posted $1.31 earnings per share. Electronic Arts’s revenue was up 8.7% on a year-over-year basis. As a group, sell-side analysts forecast that Electronic Arts will post 3.7 EPS for the current fiscal year.

In related news, CEO Andrew Wilson sold 29,000 shares of the business’s stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $101.10, for a total transaction of $2,931,900.00. Following the sale, the chief executive officer now owns 20,000 shares of the company’s stock, valued at $2,022,000. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Vijayanthimala Singh sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, May 9th. The stock was sold at an average price of $93.76, for a total value of $187,520.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 102,079 shares of company stock worth $9,954,960. Corporate insiders own 2.18% of the company’s stock.

A number of large investors have recently made changes to their positions in EA. Markel Corp grew its position in Electronic Arts by 6.2% in the second quarter. Markel Corp now owns 119,400 shares of the game software company’s stock worth $12,090,000 after buying an additional 7,000 shares during the last quarter. Mondrian Capital Management LLC acquired a new position in Electronic Arts in the second quarter worth approximately $2,025,000. Capital Wealth Planning LLC acquired a new position in Electronic Arts in the second quarter worth approximately $327,000. Envestnet Asset Management Inc. grew its position in Electronic Arts by 36.6% in the second quarter. Envestnet Asset Management Inc. now owns 225,491 shares of the game software company’s stock worth $22,833,000 after buying an additional 60,365 shares during the last quarter. Finally, Candriam Luxembourg S.C.A. grew its position in Electronic Arts by 45.7% in the second quarter. Candriam Luxembourg S.C.A. now owns 106,365 shares of the game software company’s stock worth $10,723,000 after buying an additional 33,360 shares during the last quarter. 93.83% of the stock is currently owned by hedge funds and other institutional investors.

Electronic Arts Company Profile

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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