Electronic Arts (NASDAQ:EA) Downgraded to "Hold" Rating by Hsbc Global Res

Key Points

• Electronic Arts was downgraded by HSBC Global Research from a "strong-buy" rating to a "hold" rating, reflecting a shift in analysts' sentiment towards the company's stock.
• Despite the downgrade, the stock has received mixed ratings from various analysts, with an average rating of "hold" and a target price of approximately $168.64.
• Insider trading activity shows declines in positions, as key executives sold shares recently, indicating possible concerns about the company's future performance.

Electronic Arts (NASDAQ:EA - Get Free Report) was downgraded by analysts at Hsbc Global Res from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other equities research analysts also recently commented on the company. Wells Fargo & Company set a $168.00 target price on Electronic Arts and gave the company an "equal weight" rating in a report on Monday, July 28th. Robert W. Baird reaffirmed a "neutral" rating and set a $210.00 target price (up from $170.00) on shares of Electronic Arts in a report on Monday. Citigroup reaffirmed a "neutral" rating on shares of Electronic Arts in a report on Friday. DA Davidson upped their target price on Electronic Arts from $150.00 to $160.00 and gave the company a "neutral" rating in a report on Monday, August 11th. Finally, UBS Group set a $167.00 target price on Electronic Arts and gave the company a "neutral" rating in a report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and nineteen have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $168.64.

Electronic Arts Trading Up 4.5%

Shares of NASDAQ EA opened at $202.05 on Monday. Electronic Arts has a 12 month low of $115.21 and a 12 month high of $203.75. The company has a market cap of $50.55 billion, a price-to-earnings ratio of 50.64, a P/E/G ratio of 2.94 and a beta of 0.75. 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 business has a fifty day simple moving average of $168.65 and a 200-day simple moving average of $155.12.

Insider Buying and Selling

In other news, insider Laura Miele sold 2,500 shares of the stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $155.49, for a total transaction of $388,725.00. Following the transaction, the insider owned 58,092 shares of the company's stock, valued at approximately $9,032,725.08. This represents a 4.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Jacob J. Schatz sold 1,500 shares of the stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $148.32, for a total value of $222,480.00. Following the transaction, the executive vice president directly owned 28,448 shares in the company, valued at approximately $4,219,407.36. This represents a 5.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 27,300 shares of company stock worth $4,519,680. Insiders own 0.24% of the company's stock.

Institutional Trading of Electronic Arts

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in Electronic Arts by 0.5% in the 1st quarter. Vanguard Group Inc. now owns 29,052,085 shares of the game software company's stock valued at $4,198,607,000 after buying an additional 150,438 shares during the last quarter. State Street Corp grew its holdings in Electronic Arts by 5.8% in the 2nd quarter. State Street Corp now owns 17,072,959 shares of the game software company's stock valued at $2,726,552,000 after buying an additional 932,024 shares during the last quarter. Ninety One UK Ltd grew its holdings in Electronic Arts by 4.6% in the 2nd quarter. Ninety One UK Ltd now owns 4,355,950 shares of the game software company's stock valued at $695,645,000 after buying an additional 193,442 shares during the last quarter. Ameriprise Financial Inc. grew its holdings in Electronic Arts by 44.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 4,217,029 shares of the game software company's stock valued at $673,393,000 after buying an additional 1,300,336 shares during the last quarter. Finally, Invesco Ltd. grew its holdings in Electronic Arts by 10.1% in the 2nd quarter. Invesco Ltd. now owns 4,112,305 shares of the game software company's stock valued at $656,735,000 after buying an additional 378,824 shares during the last quarter. Institutional investors and hedge funds 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.

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