Electronic Arts (NASDAQ:EA) Lowered to Hold Rating by Wall Street Zen

Key Points

• Electronic Arts was downgraded from a "buy" to a "hold" rating by Wall Street Zen, signaling a shift in analyst sentiment regarding the stock.
• Several analysts have increased their price targets for Electronic Arts, with most recent targets ranging from $148 to $210, showing mixed opinions on the stock’s potential.
• In recent insider activity, CEO Andrew Wilson sold over 6,500 shares, indicating a 8.57% decrease in his ownership stake, which may raise questions about insider confidence in the company.

Electronic Arts (NASDAQ:EA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other equities analysts also recently commented on the stock. Morgan Stanley boosted their price target on shares of Electronic Arts from $135.00 to $148.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 7th. Wells Fargo & Company set a $168.00 target price on shares of Electronic Arts and gave the stock an "equal weight" rating in a research note on Monday. Wedbush reiterated an "outperform" rating and set a $210.00 target price on shares of Electronic Arts in a research note on Tuesday, July 22nd. Bank of America boosted their target price on shares of Electronic Arts from $166.00 to $168.00 and gave the stock a "neutral" rating in a research note on Wednesday. Finally, Robert W. Baird boosted their target price on shares of Electronic Arts from $168.00 to $170.00 and gave the stock an "outperform" rating in a research note on Wednesday. Sixteen analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $164.21.

Electronic Arts Stock Up 3.0%

Electronic Arts stock opened at $157.08 on Friday. Electronic Arts has a fifty-two week low of $115.21 and a fifty-two week high of $168.50. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.95 and a current ratio of 0.84. The firm has a 50 day moving average price of $151.42 and a 200 day moving average price of $143.24. The company has a market capitalization of $39.47 billion, a PE ratio of 39.37, a price-to-earnings-growth ratio of 1.98 and a beta of 0.72.

Insider Activity

In related news, CEO Andrew Wilson sold 6,563 shares of the stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $151.18, for a total transaction of $992,194.34. Following the completion of the transaction, the chief executive officer directly owned 70,059 shares of the company's stock, valued at $10,591,519.62. This represents a 8.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Vijayanthimala Singh sold 1,000 shares of the stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $159.53, for a total transaction of $159,530.00. Following the transaction, the insider directly owned 37,131 shares of the company's stock, valued at $5,923,508.43. This represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 30,729 shares of company stock valued at $4,677,324. Company insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC increased its holdings in Electronic Arts by 70.1% in the second quarter. Salomon & Ludwin LLC now owns 165 shares of the game software company's stock valued at $26,000 after buying an additional 68 shares in the last quarter. MassMutual Private Wealth & Trust FSB grew its position in shares of Electronic Arts by 3.7% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 2,023 shares of the game software company's stock valued at $323,000 after purchasing an additional 72 shares during the last quarter. Financial Management Professionals Inc. grew its position in shares of Electronic Arts by 15.0% in the first quarter. Financial Management Professionals Inc. now owns 560 shares of the game software company's stock valued at $81,000 after purchasing an additional 73 shares during the last quarter. Bank of Jackson Hole Trust grew its position in shares of Electronic Arts by 56.4% in the first quarter. Bank of Jackson Hole Trust now owns 208 shares of the game software company's stock valued at $30,000 after purchasing an additional 75 shares during the last quarter. Finally, Whipplewood Advisors LLC grew its position in shares of Electronic Arts by 34.2% in the first quarter. Whipplewood Advisors LLC now owns 298 shares of the game software company's stock valued at $43,000 after purchasing an additional 76 shares during the last quarter. 90.23% of the stock is owned by hedge funds and other 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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