Bank of America Lowers Electronic Arts (EA) to Neutral

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Electronic Arts (NASDAQ:EA) was downgraded by investment analysts at Bank of America from a “buy” rating to a “neutral” rating in a research note issued on Friday, The Fly reports. They currently have a $126.00 price objective on the game software company’s stock. Bank of America’s price objective would suggest a potential upside of 8.68% from the company’s current price. The analysts noted that the move was a valuation call.

Several other equities research analysts also recently commented on EA. Wedbush set a $138.00 target price on shares of Electronic Arts and gave the company a “buy” rating in a research note on Thursday, May 3rd. Argus upgraded shares of Electronic Arts from a “hold” rating to a “buy” rating in a research note on Wednesday, August 1st. Piper Jaffray Companies boosted their target price on shares of Electronic Arts to $165.00 and gave the company an “overweight” rating in a research note on Wednesday, July 25th. Needham & Company LLC boosted their target price on shares of Electronic Arts from $135.00 to $170.00 and gave the company a “buy” rating in a research note on Friday, June 22nd. Finally, MKM Partners boosted their target price on shares of Electronic Arts to $144.00 and gave the company a “buy” rating in a research note on Wednesday, May 9th. Seven equities research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of $144.48.

Shares of Electronic Arts stock opened at $115.94 on Friday. The firm has a market capitalization of $38.95 billion, a price-to-earnings ratio of 33.70, a price-to-earnings-growth ratio of 1.98 and a beta of 0.61. The company has a debt-to-equity ratio of 0.19, a quick ratio of 3.84 and a current ratio of 3.84. Electronic Arts has a 52-week low of $99.63 and a 52-week high of $151.26.

Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Thursday, July 26th. The game software company reported $0.07 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.12) by $0.19. The firm had revenue of $749.00 million for the quarter, compared to analyst estimates of $742.86 million. Electronic Arts had a net margin of 14.30% and a return on equity of 25.31%. The business’s revenue for the quarter was down 3.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.06 EPS. analysts expect that Electronic Arts will post 4.3 EPS for the current fiscal year.

In other Electronic Arts news, General Counsel Jacob J. Schatz sold 1,000 shares of the company’s stock in a transaction dated Wednesday, June 20th. The shares were sold at an average price of $143.61, for a total transaction of $143,610.00. Following the transaction, the general counsel now directly owns 20,930 shares in the company, valued at approximately $3,005,757.30. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Blake J. Jorgensen sold 10,500 shares of the company’s stock in a transaction dated Tuesday, June 5th. The shares were sold at an average price of $135.83, for a total transaction of $1,426,215.00. Following the transaction, the chief financial officer now owns 163,341 shares in the company, valued at $22,186,608.03. The disclosure for this sale can be found here. In the last quarter, insiders have sold 88,250 shares of company stock worth $11,957,030. 2.24% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. lifted its position in Electronic Arts by 6.7% during the 1st quarter. BlackRock Inc. now owns 22,724,888 shares of the game software company’s stock valued at $2,755,165,000 after purchasing an additional 1,427,595 shares during the period. Egerton Capital UK LLP lifted its position in Electronic Arts by 79.8% during the 2nd quarter. Egerton Capital UK LLP now owns 4,041,717 shares of the game software company’s stock valued at $569,963,000 after purchasing an additional 1,794,024 shares during the period. American Century Companies Inc. increased its stake in shares of Electronic Arts by 16.4% in the 1st quarter. American Century Companies Inc. now owns 3,354,732 shares of the game software company’s stock valued at $406,728,000 after acquiring an additional 471,449 shares during the last quarter. Brown Advisory Inc. increased its stake in shares of Electronic Arts by 46.7% in the 1st quarter. Brown Advisory Inc. now owns 3,076,162 shares of the game software company’s stock valued at $373,023,000 after acquiring an additional 979,229 shares during the last quarter. Finally, Winslow Capital Management LLC increased its stake in shares of Electronic Arts by 18.5% in the 2nd quarter. Winslow Capital Management LLC now owns 2,888,223 shares of the game software company’s stock valued at $407,298,000 after acquiring an additional 450,216 shares during the last quarter. Institutional investors own 93.21% of the company’s stock.

About Electronic Arts

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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