Zacks Investment Research upgraded shares of Activision Blizzard (NASDAQ:ATVI) from a hold rating to a buy rating in a research note released on Wednesday morning. The brokerage currently has $59.00 price objective on the stock.
According to Zacks, “Activision’s third-quarter results were negatively impacted by underperformance of Destiny 2: Forsaken and lower revenues from King Digital. Nevertheless, management stated that the company remains on track to achieve full-year guidance driven by the release of World of Warcraft: Battle for Azeroth and Call of Duty: Black Ops 4. Strong net-bookings growth from in-game content is a key catalyst. Improving engagement levels is also a major growth driver. Moreover, the collaboration with Tencent will help the company strengthen its presence in the rapidly growth mobile gaming space, which is a significant positive. However, shares have underperformed the industry on a year-to-date basis.”
ATVI has been the subject of several other research reports. BidaskClub cut shares of Activision Blizzard from a hold rating to a sell rating in a research note on Thursday, September 6th. Oppenheimer dropped their price target on shares of Activision Blizzard from $87.00 to $68.00 and set an outperform rating for the company in a research note on Friday, November 9th. Jefferies Financial Group set a $85.00 price target on shares of Activision Blizzard and gave the company a buy rating in a research note on Saturday, November 10th. Bank of America dropped their price target on shares of Activision Blizzard from $77.00 to $68.00 and set a neutral rating for the company in a research note on Friday, November 9th. Finally, BTIG Research increased their price target on shares of Activision Blizzard from $80.00 to $88.00 and gave the company a buy rating in a research note on Tuesday, October 16th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. Activision Blizzard has a consensus rating of Buy and an average price target of $75.99.
Activision Blizzard (NASDAQ:ATVI) last posted its quarterly earnings results on Thursday, November 8th. The company reported $0.47 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.03). Activision Blizzard had a net margin of 8.07% and a return on equity of 15.44%. The firm had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.66 billion. During the same period last year, the company earned $0.25 EPS. The business’s quarterly revenue was down 12.6% on a year-over-year basis. Equities analysts expect that Activision Blizzard will post 2.37 earnings per share for the current fiscal year.
In related news, CEO Riccardo Zacconi sold 19,761 shares of the stock in a transaction that occurred on Monday, August 20th. The shares were sold at an average price of $68.70, for a total transaction of $1,357,580.70. Following the completion of the transaction, the chief executive officer now owns 20,324 shares of the company’s stock, valued at approximately $1,396,258.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.29% of the company’s stock.
Large investors have recently bought and sold shares of the stock. FMR LLC boosted its position in Activision Blizzard by 4.8% in the 3rd quarter. FMR LLC now owns 96,798,252 shares of the company’s stock valued at $8,052,646,000 after buying an additional 4,476,835 shares during the period. BlackRock Inc. boosted its position in Activision Blizzard by 0.4% in the 2nd quarter. BlackRock Inc. now owns 51,100,165 shares of the company’s stock valued at $3,899,967,000 after buying an additional 209,193 shares during the period. Jennison Associates LLC boosted its position in Activision Blizzard by 4.8% in the 3rd quarter. Jennison Associates LLC now owns 14,707,945 shares of the company’s stock valued at $1,223,554,000 after buying an additional 679,532 shares during the period. Capital International Investors boosted its position in Activision Blizzard by 233.8% in the 3rd quarter. Capital International Investors now owns 9,072,649 shares of the company’s stock valued at $754,754,000 after buying an additional 6,354,412 shares during the period. Finally, Bank of New York Mellon Corp boosted its position in Activision Blizzard by 7.0% in the 3rd quarter. Bank of New York Mellon Corp now owns 8,436,812 shares of the company’s stock valued at $701,858,000 after buying an additional 552,697 shares during the period. 87.03% of the stock is owned by hedge funds and other institutional investors.
Activision Blizzard Company Profile
Activision Blizzard, Inc develops and distributes content and services on video game consoles, personal computers (PC), and mobile devices. The company operates through three segments: Activision Publishing, Inc; Blizzard Entertainment, Inc; and King Digital Entertainment. The company develops, publishes, and sells interactive software products and entertainment content for the console and PC platforms through retail and digital channels, including subscription, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies; and offers downloadable content.
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