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

Key Points

• Zacks Research downgraded Electronic Arts (NASDAQ:EA) from hold to strong sell, adding to a mixed analyst backdrop for the stock.
• Other firms have recently shifted their views as well, with Citigroup keeping a neutral rating and raising its price target to $204, while the overall consensus remains Hold with an average target price of $196.64.
• EA shares were trading around $206.65, near their 12-month high of $206.82, and insiders have recently sold stock, including EVP Jacob J. Schatz and insider Laura Miele.

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

Several other research firms have also commented on EA. Citigroup upped their price target on shares of Electronic Arts from $202.00 to $204.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Argus cut Electronic Arts from a "buy" rating to a "hold" rating in a report on Thursday, May 28th. Wall Street Zen upgraded Electronic Arts to a "hold" rating in a research note on Saturday, June 6th. Finally, Weiss Ratings raised Electronic Arts from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 18th. Two investment analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $196.64.

Electronic Arts Stock Up 0.1%

EA stock opened at $206.65 on Monday. The company has a market capitalization of $51.82 billion, a P/E ratio of 59.21, a price-to-earnings-growth ratio of 2.31 and a beta of 0.64. Electronic Arts has a 12 month low of $146.97 and a 12 month high of $206.82. The firm's fifty day simple moving average is $202.94 and its 200-day simple moving average is $202.56. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.05 and a quick ratio of 1.05.

Insider Buying and Selling at Electronic Arts

In related news, EVP Jacob J. Schatz sold 5,000 shares of Electronic Arts stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total value of $1,005,950.00. Following the completion of the transaction, the executive vice president owned 42,287 shares in the company, valued at $8,507,721.53. The trade was a 10.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Laura Miele sold 2,500 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $203.10, for a total value of $507,750.00. Following the completion of the transaction, the insider directly owned 73,513 shares of the company's stock, valued at $14,930,490.30. The trade was a 3.29% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 31,206 shares of company stock worth $6,292,058. 0.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in EA. Ascentis Independent Advisors purchased a new stake in Electronic Arts in the 1st quarter worth $27,000. Torren Management LLC lifted its holdings in Electronic Arts by 235.0% during the second quarter. Torren Management LLC now owns 134 shares of the game software company's stock valued at $27,000 after purchasing an additional 94 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Electronic Arts in the fourth quarter valued at about $28,000. Asset Planning Inc acquired a new stake in shares of Electronic Arts in the first quarter valued at about $32,000. Finally, Whipplewood Advisors LLC purchased a new stake in shares of Electronic Arts during the first quarter worth about $32,000. 90.23% of the stock is owned by institutional investors and hedge funds.

About Electronic Arts

Electronic Arts Inc NASDAQ: EA is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA's product lineup spans several well-known franchises and genres.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.