Baird R W Downgrades Electronic Arts (NASDAQ:EA) to Hold

Key Points

• Baird R W has downgraded Electronic Arts (NASDAQ:EA) from a "strong-buy" to a "hold" rating, indicating a shift in analysts' perception of the company's stock.
• Despite the downgrade, other analysts have upgraded EA or set higher price targets, with a consensus target price of $168.64 and a majority rating it as a "hold."
• Insider trading activity includes significant sales by executives, with Laura Miele selling 2,500 shares and CEO Andrew Wilson selling 5,000 shares, representing notable decreases in their ownership stakes.

Electronic Arts (NASDAQ:EA - Get Free Report) was downgraded by research analysts at Baird R W from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. Roth Capital upgraded shares of Electronic Arts from a "neutral" rating to a "buy" rating and increased their price target for the company from $175.00 to $185.00 in a report on Tuesday, June 24th. UBS Group set a $167.00 price target on shares of Electronic Arts and gave the company a "neutral" rating in a report on Friday, August 1st. Arete upgraded shares of Electronic Arts from a "neutral" rating to a "buy" rating and set a $192.00 price target on the stock in a report on Tuesday, August 5th. DA Davidson increased their price target on shares of Electronic Arts from $150.00 to $160.00 and gave the company a "neutral" rating in a report on Monday, August 11th. Finally, Citigroup reiterated a "neutral" rating on shares of Electronic Arts in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and nineteen have issued a Hold rating to the company. According to MarketBeat.com, Electronic Arts currently has an average rating of "Hold" and a consensus target price of $168.64.

Electronic Arts Trading Up 4.5%

NASDAQ:EA opened at $202.05 on Monday. The company's 50 day moving average price is $168.65 and its 200-day moving average price is $155.12. 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 0.24. The stock has a market cap of $50.55 billion, a price-to-earnings ratio of 50.64, a PEG ratio of 2.94 and a beta of 0.75.

Insider Buying and Selling at Electronic Arts

In other Electronic Arts news, insider Laura Miele sold 2,500 shares of the stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $155.49, for a total value of $388,725.00. Following the transaction, the insider directly owned 58,092 shares in the company, valued at approximately $9,032,725.08. This trade represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $171.05, for a total transaction of $855,250.00. Following the completion of the transaction, the chief executive officer owned 52,393 shares in the company, valued at $8,961,822.65. The trade was a 8.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 27,300 shares of company stock valued at $4,519,680 over the last three months. Insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in EA. Ameriprise Financial Inc. raised its position in Electronic Arts by 197.5% in the first quarter. Ameriprise Financial Inc. now owns 2,916,693 shares of the game software company's stock worth $421,524,000 after acquiring an additional 1,936,313 shares during the period. Alyeska Investment Group L.P. bought a new position in Electronic Arts in the first quarter worth approximately $225,102,000. Nuveen LLC bought a new position in Electronic Arts in the first quarter worth approximately $203,537,000. Goldman Sachs Group Inc. raised its position in Electronic Arts by 62.7% in the first quarter. Goldman Sachs Group Inc. now owns 3,253,505 shares of the game software company's stock worth $470,197,000 after acquiring an additional 1,254,194 shares during the period. Finally, Acadian Asset Management LLC raised its position in Electronic Arts by 176.6% in the second quarter. Acadian Asset Management LLC now owns 1,862,898 shares of the game software company's stock worth $297,465,000 after acquiring an additional 1,189,455 shares during the period. 90.23% of the stock is currently owned by institutional investors.

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.

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