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Electronic Arts (NASDAQ:EA) Cut to Neutral at Bank of America

kopsource · Feb 4, 2023 07:12

Bank of America cut shares of Electronic Arts (NASDAQ:EA – Get Rating) from a buy rating to a neutral rating in a research report released on Wednesday morning, MarketBeat Ratings reports. Bank of America currently has $130.00 target price on the game software company's stock, down from their previous target price of $155.00.

A number of other analysts have also recently weighed in on EA. Credit Suisse Group lowered their price objective on Electronic Arts from $154.00 to $132.00 in a research report on Wednesday. Barclays reduced their target price on Electronic Arts from $132.00 to $118.00 and set an equal weight rating for the company in a research note on Wednesday. Robert W. Baird reduced their target price on Electronic Arts from $145.00 to $125.00 and set an outperform rating for the company in a research note on Wednesday. Cowen reduced their target price on Electronic Arts from $158.00 to $136.00 and set an outperform rating for the company in a research note on Wednesday. Finally, StockNews.com upgraded Electronic Arts from a buy rating to a strong-buy rating in a research note on Monday, January 30th. Nine analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of Moderate Buy and an average target price of $137.26.

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Electronic Arts Stock Down 1.8 %

Electronic Arts stock opened at $113.92 on Wednesday. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.23 and a quick ratio of 1.34. The stock has a market capitalization of $31.45 billion, a price-to-earnings ratio of 30.71, a PEG ratio of 2.40 and a beta of 0.83. Electronic Arts has a 1-year low of $109.24 and a 1-year high of $142.79. The business has a fifty day moving average price of $124.59 and a 200-day moving average price of $125.96.

Electronic Arts (NASDAQ:EA – Get Rating) last posted its quarterly earnings data on Tuesday, January 31st. The game software company reported $0.73 earnings per share for the quarter, missing analysts' consensus estimates of $2.62 by ($1.89). The business had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.50 billion. Electronic Arts had a return on equity of 14.38% and a net margin of 14.08%. The firm's revenue for the quarter was down 9.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.80 EPS. Equities research analysts forecast that Electronic Arts will post 5.54 EPS for the current fiscal year.

Electronic Arts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 22nd. Investors of record on Wednesday, March 1st will be paid a $0.19 dividend. The ex-dividend date of this dividend is Tuesday, February 28th. This represents a $0.76 annualized dividend and a dividend yield of 0.67%. Electronic Arts's dividend payout ratio is presently 20.49%.

Insider Activity at Electronic Arts

In related news, CAO Eric Charles Kelly sold 1,000 shares of Electronic Arts stock in a transaction dated Monday, November 14th. The stock was sold at an average price of $129.56, for a total value of $129,560.00. Following the sale, the chief accounting officer now directly owns 5,730 shares in the company, valued at approximately $742,378.80. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In related news, insider Vijayanthimala Singh sold 800 shares of Electronic Arts stock in a transaction dated Thursday, December 1st. The stock was sold at an average price of $131.83, for a total value of $105,464.00. Following the sale, the insider now directly owns 26,955 shares in the company, valued at approximately $3,553,477.65. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Eric Charles Kelly sold 1,000 shares of Electronic Arts stock in a transaction dated Monday, November 14th. The stock was sold at an average price of $129.56, for a total value of $129,560.00. Following the completion of the sale, the chief accounting officer now owns 5,730 shares in the company, valued at $742,378.80. The disclosure for this sale can be found here. Insiders sold a total of 33,400 shares of company stock worth $4,242,210 in the last 90 days. Corporate insiders own 0.37% of the company's stock.

Institutional Investors Weigh In On Electronic Arts

Institutional investors have recently bought and sold shares of the company. Public Investment Fund boosted its holdings in shares of Electronic Arts by 12.7% during the 2nd quarter. Public Investment Fund now owns 16,011,844 shares of the game software company's stock worth $1,947,841,000 after purchasing an additional 1,801,844 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of Electronic Arts by 272.6% during the 3rd quarter. Price T Rowe Associates Inc. MD now owns 1,609,257 shares of the game software company's stock worth $186,208,000 after purchasing an additional 1,177,415 shares during the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Electronic Arts by 159.7% during the 2nd quarter. Renaissance Technologies LLC now owns 1,501,264 shares of the game software company's stock worth $182,629,000 after purchasing an additional 923,200 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in shares of Electronic Arts by 3.7% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 11,493,753 shares of the game software company's stock worth $1,398,216,000 after purchasing an additional 415,212 shares during the last quarter. Finally, Marshall Wace LLP boosted its holdings in shares of Electronic Arts by 209.9% during the 3rd quarter. Marshall Wace LLP now owns 535,842 shares of the game software company's stock worth $62,005,000 after purchasing an additional 362,954 shares during the last quarter. 89.46% of the stock is currently owned by institutional investors and hedge funds.

Electronic Arts Company Profile

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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, The Sims, Apex Legends, Anthem, Need for Speed, and Plants v.