Is Electronic Arts (NASDAQ:EA) Now a Sell? Why did Morgan Stanley Downgrade The Stock?

January 13, 2018 - By Migdalia James

 Is Electronic Arts (NASDAQ:EA) Now a Sell? Why did Morgan Stanley Downgrade The Stock?

Investors sentiment increased to 1.15 in 2017 Q3. Its up 0.12, from 1.03 in 2017Q2. It increased, as 35 investors sold Electronic Arts Inc. shares while 217 reduced holdings. 72 funds opened positions while 218 raised stakes. 281.04 million shares or 1.59% less from 285.59 million shares in 2017Q2 were reported.

Redwood Investments Limited Liability Com invested in 89,884 shares or 1.21% of the stock. The Florida-based Gyroscope Capital Gru Limited Liability Company has invested 0.18% in Electronic Arts Inc. (NASDAQ:EA). Ardevora Asset Management Ltd Liability Partnership owns 1.12% invested in Electronic Arts Inc. (NASDAQ:EA) for 317,367 shares. Connor Clark And Lunn Inv reported 13,950 shares stake. Aqr Management Lc invested in 0.3% or 2.14M shares. 27,075 are owned by Bamco Inc Ny. Commonwealth Retail Bank Of Australia, a Australia-based fund reported 7,861 shares. 2.34M were accumulated by Alliancebernstein L P. Martingale Asset Management L P accumulated 163,056 shares. Cwm Limited Liability accumulated 84 shares or 0% of the stock. Twin Capital Mgmt holds 0.54% or 87,560 shares. San Francisco Sentry Grp Incorporated (Ca) invested in 0.24% or 5,967 shares. Nicholas Lp has invested 0.25% in Electronic Arts Inc. (NASDAQ:EA). Aviva Public Limited Company holds 0.12% of its portfolio in Electronic Arts Inc. (NASDAQ:EA) for 190,498 shares. Nordea Invest Ab owns 1.62 million shares or 0.46% of their US portfolio.

Since August 1, 2017, it had 0 insider buys, and 30 selling transactions for $30.68 million activity. $1.18M worth of stock was sold by Jorgensen Blake J on Thursday, October 5. PROBST LAWRENCE F III sold $6.77M worth of stock. $944,324 worth of Electronic Arts Inc. (NASDAQ:EA) was sold by Soderlund Patrick on Monday, October 2. The insider Miele Laura sold $87,758. LINZNER JOEL sold $467,843 worth of Electronic Arts Inc. (NASDAQ:EA) on Tuesday, August 1. Singh Vijayanthimala sold $21,040 worth of stock or 200 shares.

Electronic Arts (NASDAQ:EA) Receives a Downgrade

In a note released on Friday, 12 January, Morgan Stanley downgraded shares of Electronic Arts (NASDAQ:EA) to a lower Equal-Weight rating from the previous Overweight rating.

Investors sentiment increased to 1.15 in 2017 Q3. Its up 0.12, from 1.03 in 2017Q2. It increased, as 35 investors sold Electronic Arts Inc. shares while 217 reduced holdings. 72 funds opened positions while 218 raised stakes. 281.04 million shares or 1.59% less from 285.59 million shares in 2017Q2 were reported.

Redwood Investments Limited Liability Com invested in 89,884 shares or 1.21% of the stock. The Florida-based Gyroscope Capital Gru Limited Liability Company has invested 0.18% in Electronic Arts Inc. (NASDAQ:EA). Ardevora Asset Management Ltd Liability Partnership owns 1.12% invested in Electronic Arts Inc. (NASDAQ:EA) for 317,367 shares. Connor Clark And Lunn Inv reported 13,950 shares stake. Aqr Management Lc invested in 0.3% or 2.14M shares. 27,075 are owned by Bamco Inc Ny. Commonwealth Retail Bank Of Australia, a Australia-based fund reported 7,861 shares. 2.34M were accumulated by Alliancebernstein L P. Martingale Asset Management L P accumulated 163,056 shares. Cwm Limited Liability accumulated 84 shares or 0% of the stock. Twin Capital Mgmt holds 0.54% or 87,560 shares. San Francisco Sentry Grp Incorporated (Ca) invested in 0.24% or 5,967 shares. Nicholas Lp has invested 0.25% in Electronic Arts Inc. (NASDAQ:EA). Aviva Public Limited Company holds 0.12% of its portfolio in Electronic Arts Inc. (NASDAQ:EA) for 190,498 shares. Nordea Invest Ab owns 1.62 million shares or 0.46% of their US portfolio.

Since August 1, 2017, it had 0 insider buys, and 30 selling transactions for $30.68 million activity. $1.18M worth of stock was sold by Jorgensen Blake J on Thursday, October 5. PROBST LAWRENCE F III sold $6.77M worth of stock. $944,324 worth of Electronic Arts Inc. (NASDAQ:EA) was sold by Soderlund Patrick on Monday, October 2. The insider Miele Laura sold $87,758. LINZNER JOEL sold $467,843 worth of Electronic Arts Inc. (NASDAQ:EA) on Tuesday, August 1. Singh Vijayanthimala sold $21,040 worth of stock or 200 shares.

Electronic Arts Inc. (NASDAQ:EA) Ratings Coverage

Among 26 analysts covering Electronic Arts (NASDAQ:EA), 23 have Buy rating, 0 Sell and 3 Hold. Therefore 88% are positive. Electronic Arts has $138.0 highest and $67 lowest target. $115.59’s average target is 2.17% above currents $113.13 stock price. Electronic Arts had 80 analyst reports since July 28, 2015 according to SRatingsIntel. The rating was maintained by Bank of America on Wednesday, October 18 with “Buy”. Piper Jaffray maintained the shares of EA in report on Friday, September 8 with “Buy” rating. The rating was maintained by Benchmark with “Buy” on Wednesday, May 11. The rating was downgraded by Hilliard Lyons to “Long-Term Buy” on Wednesday, March 30. The rating was maintained by Oppenheimer on Friday, July 28 with “Buy”. Piper Jaffray maintained Electronic Arts Inc. (NASDAQ:EA) on Friday, July 28 with “Buy” rating. The company was maintained on Tuesday, October 31 by Oppenheimer. The firm has “Outperform” rating by Credit Suisse given on Monday, January 25. Piper Jaffray maintained the shares of EA in report on Wednesday, November 1 with “Buy” rating. The company was maintained on Wednesday, October 26 by Wedbush.

The stock increased 1.01% or $1.13 during the last trading session, reaching $113.13. About 3.47M shares traded. Electronic Arts Inc. (NASDAQ:EA) has risen 46.45% since January 13, 2017 and is uptrending. It has outperformed by 29.75% the S&P500.

Analysts await Electronic Arts Inc. (NASDAQ:EA) to report earnings on January, 30. They expect $2.06 earnings per share, down 15.92 % or $0.39 from last year’s $2.45 per share. EA’s profit will be $634.33M for 13.73 P/E if the $2.06 EPS becomes a reality. After $0.50 actual earnings per share reported by Electronic Arts Inc. for the previous quarter, Wall Street now forecasts 312.00 % EPS growth.

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, personal computers, mobile phones, and tablets worldwide. The company has market cap of $34.84 billion. It develops and publishes games primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. It has a 29.83 P/E ratio. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars, as well as publishes and distributes games developed by third parties.

More notable recent Electronic Arts Inc. (NASDAQ:EA) news were published by: Investorplace.com which released: “Here’s Where To Go All In on Electronic Arts Inc. After Rebound” on December 20, 2017, also Investorplace.com with their article: “3 Reasons the Electronic Arts Inc. Stock Rally Is Just Getting Started” published on January 11, 2018, Law360.com published: “MLS, Electronic Arts Launch Esports League” on January 12, 2018. More interesting news about Electronic Arts Inc. (NASDAQ:EA) were released by: Benzinga.com and their article: “What Is Melvin Capital, And What Does It Want With Electronic Arts?” published on January 05, 2018 as well as Fool.com‘s news article titled: “Why Electronic Arts Stock Gained 33.4% in 2017” with publication date: January 12, 2018.

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