Time to Buy Electronic Arts Inc. After Today’s Option Traders Bet?


 Time to Buy Electronic Arts Inc. After Today's Option Traders Bet?

In today’s session Electronic Arts Inc. (EA) registered an unusually high (5,103) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the October, 2016 call, expecting serious EA increase. With 5,103 contracts traded and 164 open interest for the Oct, 16 contract, it seems this is a quite bullish bet. The option with symbol: EA161021C00089000 closed last at: $0.49 or 19.5% up. About 342,799 shares traded hands. Electronic Arts Inc. (NASDAQ:EA) has risen 30.44% since March 1, 2016 and is uptrending. It has outperformed by 21.19% the S&P500.

Analysts await Electronic Arts Inc. (NASDAQ:EA) to report earnings on November, 3. They expect $0.32 EPS, down 38.46% or $0.20 from last year’s $0.52 per share. EA’s profit will be $96.26 million for 66.85 P/E if the $0.32 EPS becomes a reality. After $-0.08 actual EPS reported by Electronic Arts Inc. for the previous quarter, Wall Street now forecasts -500.00% EPS growth.

Electronic Arts Inc. (NASDAQ:EA) Ratings Coverage

Out of 16 analysts covering Electronic Arts (NASDAQ:EA), 15 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 94% are positive. $101 is the highest target while $67 is the lowest. The $84.52 average target is -1.23% below today’s ($85.57) stock price. Electronic Arts has been the topic of 25 analyst reports since July 28, 2015 according to StockzIntelligence Inc. The firm earned “Buy” rating on Monday, May 23 by Benchmark. The firm has “Outperform” rating given on Thursday, November 12 by Oppenheimer. On Wednesday, April 27 the stock rating was initiated by BMO Capital Markets with “Market Perform”. The stock of Electronic Arts Inc. (NASDAQ:EA) has “Buy” rating given on Monday, October 26 by Stifel Nicolaus. Benchmark maintained the shares of EA in a report on Wednesday, May 11 with “Buy” rating. The rating was initiated by Morgan Stanley with “Overweight” on Friday, September 23. Atlantic Securities upgraded Electronic Arts Inc. (NASDAQ:EA) on Friday, December 4 to “Overweight” rating. The rating was upgraded by Bank of America on Friday, January 15 to “Buy”. The company was maintained on Monday, January 25 by Credit Suisse. The stock has “Buy” rating given by Mizuho on Friday, October 30.

Insitutional Activity: The institutional sentiment decreased to 0.71 in 2016 Q2. Its down 0.10, from 0.81 in 2016Q1. The ratio dived, as 60 funds sold all Electronic Arts Inc. shares owned while 245 reduced positions. 63 funds bought stakes while 155 increased positions. They now own 299.80 million shares or 2.26% less from 306.74 million shares in 2016Q1.
Redwood Investments Lc has 212,269 shares for 1.48% of their US portfolio. Commonwealth Equity Svcs has 4,493 shares for 0% of their US portfolio. Fmr Limited Com has 29.81M shares for 0.31% of their US portfolio. Connor Clark Lunn Investment Management Ltd last reported 0.02% of its portfolio in the stock. Art Advsr Ltd Liability Com has 29,912 shares for 0.11% of their US portfolio. Cohen Klingenstein has 0.17% invested in the company for 11,858 shares. Nomura Hldg Inc has 0.07% invested in the company for 294,573 shares. Bank Of Montreal Can has invested 0.02% of its portfolio in Electronic Arts Inc. (NASDAQ:EA). Moreover, Texas Permanent School Fund has 0.1% invested in Electronic Arts Inc. (NASDAQ:EA) for 97,855 shares. Jefferies Grp Ltd Liability Corp accumulated 0% or 2,781 shares. Jaffetilchin Investment Prtnrs Limited Liability Co last reported 15,022 shares in the company. Newbrook Cap Advsr L P last reported 4.6% of its portfolio in the stock. Amica Mutual Ins, a Rhode Island-based fund reported 18,213 shares. Quantitative Inv Llc has 79,700 shares for 0.28% of their US portfolio. Atlantic Group Incorporated Lc holds 53,887 shares or 0.03% of its portfolio.

Insider Transactions: Since April 13, 2016, the stock had 0 insider purchases, and 47 selling transactions for $41.52 million net activity. Soderlund Patrick sold 90,752 shares worth $6.79 million. BARKER KENNETH A sold 15,909 shares worth $1.29 million. Another trade for 8,000 shares valued at $615,117 was sold by Wilson Andrew. Miele Laura sold $153,618 worth of Electronic Arts Inc. (NASDAQ:EA) on Wednesday, May 18. Jorgensen Blake J sold $772,044 worth of stock. Another trade for 8,000 shares valued at $606,674 was sold by MOORE PETER R.. Another trade for 3,000 shares valued at $229,943 was made by LINZNER JOEL on Tuesday, May 31.

Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by clients on a range of platforms, which include consoles, personal computers , mobile phones and tablets. The company has a market cap of $25.74 billion. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed. It has a 23.74 P/E ratio. The Firm markets and sells its games and services through retail channels and through digital distribution channels.

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