Electronic Arts (NASDAQ:EA) Announces Earnings Results

Electronic Arts (NASDAQ:EA) released its quarterly earnings results on Tuesday. The game software company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $4.88 by ($4.53), FiscalAI reports. Electronic Arts had a net margin of 12.14% and a return on equity of 15.30%. The company had revenue of $1.90 billion during the quarter, compared to analyst estimates of $2.92 billion.

Electronic Arts Stock Performance

Shares of EA stock traded down $2.07 on Tuesday, reaching $201.53. The stock had a trading volume of 5,938,585 shares, compared to its average volume of 2,123,985. Electronic Arts has a 12 month low of $120.22 and a 12 month high of $204.88. The firm has a market capitalization of $50.40 billion, a price-to-earnings ratio of 58.93, a P/E/G ratio of 2.46 and a beta of 0.74. The firm’s 50-day moving average is $203.88 and its two-hundred day moving average is $189.85. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.25.

Insider Activity

In related news, CFO Stuart Canfield sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $201.65, for a total transaction of $302,475.00. Following the transaction, the chief financial officer directly owned 5,595 shares of the company’s stock, valued at approximately $1,128,231.75. The trade was a 21.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Laura Miele sold 2,500 shares of the stock in a transaction on Monday, December 15th. The shares were sold at an average price of $204.11, for a total value of $510,275.00. Following the completion of the sale, the insider owned 53,148 shares in the company, valued at approximately $10,848,038.28. This trade represents a 4.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 123,769 shares of company stock valued at $24,943,734. 0.24% of the stock is owned by insiders.

Hedge Funds Weigh In On Electronic Arts

Several large investors have recently modified their holdings of EA. Pentwater Capital Management LP acquired a new stake in shares of Electronic Arts during the 3rd quarter worth about $968,160,000. Invesco Ltd. raised its holdings in Electronic Arts by 4.9% in the 3rd quarter. Invesco Ltd. now owns 4,314,962 shares of the game software company’s stock valued at $870,328,000 after acquiring an additional 202,657 shares during the period. Ameriprise Financial Inc. raised 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 acquiring an additional 1,300,336 shares during the period. Amundi lifted its position in Electronic Arts by 0.3% during the third quarter. Amundi now owns 1,988,359 shares of the game software company’s stock worth $398,586,000 after acquiring an additional 6,847 shares during the last quarter. Finally, Man Group plc boosted its holdings in shares of Electronic Arts by 165.5% during the second quarter. Man Group plc now owns 1,279,249 shares of the game software company’s stock worth $204,296,000 after acquiring an additional 797,461 shares during the period. 90.23% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on EA shares. Argus set a $210.00 target price on shares of Electronic Arts in a research note on Thursday, October 30th. Morgan Stanley upped their price objective on Electronic Arts from $148.00 to $210.00 and gave the stock an “equal weight” rating in a research report on Monday, October 20th. Citigroup lifted their target price on Electronic Arts from $206.00 to $207.00 and gave the company a “neutral” rating in a research report on Thursday, October 30th. Benchmark restated a “buy” rating on shares of Electronic Arts in a research note on Wednesday, October 29th. Finally, Zacks Research cut shares of Electronic Arts from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 19th. Four equities research analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Electronic Arts currently has an average rating of “Hold” and an average target price of $187.19.

Electronic Arts Company Profile

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.