Electronic Arts (NASDAQ:EA) Downgraded to Hold Rating by Zacks Research

Zacks Research cut shares of Electronic Arts (NASDAQ:EA) from a strong-buy rating to a hold rating in a report released on Wednesday morning,Zacks.com reports.

Other equities research analysts have also issued reports about the company. Roth Capital lowered Electronic Arts from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $185.00 to $210.00 in a research report on Thursday, October 2nd. Argus set a $210.00 price objective on shares of Electronic Arts in a research note on Thursday, October 30th. Cowen cut Electronic Arts from a “buy” rating to a “hold” rating in a research note on Wednesday, October 1st. Jefferies Financial Group lowered shares of Electronic Arts from a “buy” rating to a “hold” rating and boosted their price objective for the stock from $200.00 to $210.00 in a report on Tuesday, September 30th. Finally, Baird R W cut Electronic Arts from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 29th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, twenty-six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Electronic Arts currently has an average rating of “Hold” and a consensus target price of $181.64.

Electronic Arts Trading Down 0.2%

NASDAQ:EA opened at $201.12 on Wednesday. The firm has a market capitalization of $50.16 billion, a P/E ratio of 58.81, a P/E/G ratio of 3.04 and a beta of 0.74. Electronic Arts has a 52 week low of $115.21 and a 52 week high of $203.75. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.25. The company has a fifty day moving average of $194.84 and a 200 day moving average of $170.26.

Electronic Arts (NASDAQ:EA) last posted its earnings results on Tuesday, October 28th. The game software company reported $0.65 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.07). Electronic Arts had a return on equity of 15.30% and a net margin of 12.14%.The firm had revenue of $1.84 billion for the quarter, compared to analysts’ expectations of $1.88 billion. During the same quarter in the prior year, the company posted $1.11 earnings per share. The business’s revenue for the quarter was down 12.6% on a year-over-year basis. On average, research analysts predict that Electronic Arts will post 4.71 earnings per share for the current year.

Electronic Arts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 23rd. Investors of record on Wednesday, December 3rd will be issued a dividend of $0.19 per share. The ex-dividend date is Wednesday, December 3rd. This represents a $0.76 dividend on an annualized basis and a yield of 0.4%. Electronic Arts’s dividend payout ratio (DPR) is presently 22.22%.

Insider Transactions at Electronic Arts

In related news, EVP Jacob J. Schatz sold 1,200 shares of the stock in a transaction that occurred on Wednesday, October 15th. The stock was sold at an average price of $200.80, for a total value of $240,960.00. Following the transaction, the executive vice president owned 24,880 shares of the company’s stock, valued at $4,995,904. This represents a 4.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Vijayanthimala Singh sold 1,200 shares of Electronic Arts stock in a transaction on Monday, November 17th. The shares were sold at an average price of $201.42, for a total value of $241,704.00. Following the sale, the insider directly owned 34,760 shares of the company’s stock, valued at approximately $7,001,359.20. This trade represents a 3.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 40,900 shares of company stock valued at $7,873,176 in the last ninety days. Corporate insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in EA. Salomon & Ludwin LLC boosted its stake in shares of Electronic Arts by 70.1% during the second quarter. Salomon & Ludwin LLC now owns 165 shares of the game software company’s stock valued at $26,000 after purchasing an additional 68 shares in the last quarter. Ameriflex Group Inc. boosted its position in Electronic Arts by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 138 shares of the game software company’s stock valued at $28,000 after acquiring an additional 69 shares in the last quarter. Bank of Jackson Hole Trust increased its holdings in shares of Electronic Arts by 56.4% in the 1st quarter. Bank of Jackson Hole Trust now owns 208 shares of the game software company’s stock valued at $30,000 after acquiring an additional 75 shares during the period. MTM Investment Management LLC bought a new position in shares of Electronic Arts in the 2nd quarter worth $30,000. Finally, Oakworth Capital Inc. purchased a new stake in shares of Electronic Arts during the 3rd quarter worth $30,000. Hedge funds and other institutional investors own 90.23% 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. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.