Could Electronic Arts Inc. Decline After Today’s Tip From Option Traders?

 Could Electronic Arts Inc. Decline After Today's Tip From Option Traders?

In today’s session Electronic Arts Inc. (EA) registered an unusually high (102) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious EA increase. With 102 contracts traded and 21214 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: EA170120C00080000 closed last at: $2.7 or 5.6% down. About 496,097 shares traded hands. Electronic Arts Inc. (NASDAQ:EA) has risen 20.51% since April 26, 2016 and is uptrending. It has outperformed by 15.25% the S&P500.

Analysts await Electronic Arts Inc. (NASDAQ:EA) to report earnings on January, 26. They expect $2.15 EPS, up 24.28% or $0.42 from last year’s $1.73 per share. EA’s profit will be $645.29M for 9.41 P/E if the $2.15 EPS becomes a reality. After $0.43 actual EPS reported by Electronic Arts Inc. for the previous quarter, Wall Street now forecasts 400.00% EPS growth.

Electronic Arts Inc. (NASDAQ:EA) Ratings Coverage

Out of 17 analysts covering Electronic Arts (NASDAQ:EA), 13 rate it a “Buy”, 0 “Sell”, while 4 “Hold”. This means 76% are positive. Electronic Arts has been the topic of 31 analyst reports since July 28, 2015 according to StockzIntelligence Inc. Hilliard Lyons downgraded Electronic Arts Inc. (NASDAQ:EA) on Wednesday, March 30 to “Long-Term Buy” rating. The stock of Electronic Arts Inc. (NASDAQ:EA) has “Outperform” rating given on Thursday, November 12 by Oppenheimer. Stifel Nicolaus maintained it with “Buy” rating and $87 target price in Monday, September 12 report. On Monday, January 18 the stock rating was upgraded by Bank of America to “Buy”. The firm earned “Buy” rating on Wednesday, November 2 by Benchmark. Benchmark maintained the stock with “Buy” rating in Monday, May 23 report. The company was maintained on Friday, October 14 by Oppenheimer. The company was upgraded on Tuesday, February 9 by Hilliard Lyons. The stock of Electronic Arts Inc. (NASDAQ:EA) has “Buy” rating given on Friday, January 15 by Bank of America. On Wednesday, October 14 the stock rating was upgraded by M Partners to “Buy”.

According to Zacks Investment Research, “Electronic Arts Inc. operates in two principal business segments globally: EA Core business segment: creation, marketing and distribution of entertainment software and the EA.com business segment: creation, marketing and distribution of entertainment software which can be played or sold online.”

Insitutional Activity: The institutional sentiment increased to 0.81 in 2016 Q2. Its up 0.10, from 0.71 in 2016Q1. The ratio improved, 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.
Lathrop Corp accumulated 4.9% or 208,244 shares. Teachers Retirement Systems Of The State Of Kentucky holds 41,600 shares or 0.04% of its portfolio. Great West Life Assurance Com Can, a Manitoba – Canada-based fund reported 166,047 shares. Federated Invsts Pa has 93,821 shares for 0.02% of their US portfolio. Zweig has 205,671 shares for 1.59% of their US portfolio. Ftb Advsr Incorporated has 0% invested in the company for 30 shares. Tiaa Cref Management Ltd Liability Corporation owns 1.86M shares or 0.11% of their US portfolio. Nordea Invest Ab has 1.64M shares for 0.37% of their US portfolio. The New York-based Arrow Fin Corp has invested 0% in Electronic Arts Inc. (NASDAQ:EA). Northern Tru Corp holds 0.09% of its portfolio in Electronic Arts Inc. (NASDAQ:EA) for 3.51 million shares. Tocqueville Asset Mngmt Limited Partnership last reported 0% of its portfolio in the stock. Appleton Prtnrs Ma owns 19,815 shares or 0.31% of their US portfolio. Blackrock Fund Advisors last reported 0.09% of its portfolio in the stock. Copper Rock Capital Prtnrs Lc has 6,725 shares for 0.04% of their US portfolio. 1832 Asset Management L P has 0.08% invested in the company for 274,100 shares.

Insider Transactions: Since May 31, 2016, the stock had 1 insider purchase, and 39 selling transactions for $33.41 million net activity. The insider Jorgensen Blake J sold $793,647. 23,257 shares were sold by LINZNER JOEL, worth $1.85 million. Shares for $622,043 were sold by Wilson Andrew. $611,749 worth of shares were sold by Soderlund Patrick on Monday, August 1. Another trade for 8,000 shares valued at $606,674 was sold by MOORE PETER R.. $205,457 worth of Electronic Arts Inc. (NASDAQ:EA) shares were sold by Warren Denise. 2,721 shares with value of $208,924 were sold by SMITH SAMANTHA S. on Monday, November 14.

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 $24.29 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 20.61 P/E ratio. The Firm markets and sells its games and services through retail channels and through digital distribution channels.

EA Company Profile

Electronic Arts Inc., incorporated on May 8, 1991, 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 (PCs), mobile phones and tablets. 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. The Firm markets and sells its games and services through retail channels and through digital distribution channels.

More notable recent Electronic Arts Inc. (NASDAQ:EA) news were published by: Forbes.com which released: “Short Interest In Electronic Arts Falls 10%” on November 28, 2016, also Fool.com with their article: “Electronic Arts Inc. Sales Boosted by Sports, Star Wars Franchises” published on November 04, 2016, Seekingalpha.com published: “Electronic Arts Fell Short” on November 24, 2016. More interesting news about Electronic Arts Inc. (NASDAQ:EA) were released by: Wsj.com and their article: “Electronic Arts Earnings: What to Watch” published on November 01, 2016 as well as Wsj.com‘s news article titled: “Electronic Arts Says Revenue Up, Raises Outlook” with publication date: November 01, 2016.

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