Investors Buy Electronic Arts (EA) on Weakness After Insider Selling

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Investors purchased shares of Electronic Arts Inc. (NASDAQ:EA) on weakness during trading on Wednesday after an insider sold shares in the company. $515.69 million flowed into the stock on the tick-up and $433.10 million flowed out of the stock on the tick-down, for a money net flow of $82.59 million into the stock. Of all equities tracked, Electronic Arts had the 6th highest net in-flow for the day. Electronic Arts traded down ($0.08) for the day and closed at $102.25Specifically, CFO Blake J. Jorgensen sold 2,617 shares of Electronic Arts stock in a transaction that occurred on Friday, December 7th. The shares were sold at an average price of $85.02, for a total transaction of $222,497.34. Following the transaction, the chief financial officer now owns 101,774 shares of the company’s stock, valued at approximately $8,652,825.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew Wilson sold 9,000 shares of Electronic Arts stock in a transaction that occurred on Monday, December 3rd. The stock was sold at an average price of $84.36, for a total transaction of $759,240.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 65,200 shares of company stock valued at $5,962,501. 2.24% of the stock is owned by corporate insiders.

Several research analysts recently weighed in on the stock. BMO Capital Markets lifted their price objective on shares of Electronic Arts from $96.00 to $116.00 and gave the stock an “outperform” rating in a research note on Wednesday. Robert W. Baird lifted their price objective on shares of Electronic Arts to $106.00 and gave the stock an “outperform” rating in a research note on Tuesday. Jefferies Financial Group lifted their price objective on shares of Electronic Arts to $90.00 and gave the stock a “buy” rating in a research note on Monday. Buckingham Research lowered shares of Electronic Arts from a “buy” rating to a “neutral” rating and lifted their price objective for the stock from $90.00 to $103.00 in a research note on Monday. Finally, Bank of America raised shares of Electronic Arts from a “neutral” rating to a “buy” rating and lifted their price objective for the stock from $95.00 to $110.00 in a research note on Monday. Two analysts have rated the stock with a sell rating, six have assigned a hold rating, twenty-one have assigned a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus target price of $113.92.

The company has a debt-to-equity ratio of 0.19, a quick ratio of 2.99 and a current ratio of 2.99. The company has a market cap of $29.13 billion, a price-to-earnings ratio of 29.72, a P/E/G ratio of 2.07 and a beta of 1.20.

Electronic Arts (NASDAQ:EA) last announced its quarterly earnings results on Tuesday, February 5th. The game software company reported $1.87 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.75 by $0.12. Electronic Arts had a net margin of 26.77% and a return on equity of 23.21%. The firm had revenue of $1.61 billion for the quarter, compared to analyst estimates of $1.75 billion. During the same quarter in the previous year, the firm posted ($0.60) earnings per share. The business’s revenue was down 18.4% on a year-over-year basis. As a group, equities analysts predict that Electronic Arts Inc. will post 3.14 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently made changes to their positions in the business. Advisors Asset Management Inc. raised its holdings in shares of Electronic Arts by 16.9% in the second quarter. Advisors Asset Management Inc. now owns 29,028 shares of the game software company’s stock valued at $4,094,000 after purchasing an additional 4,204 shares during the last quarter. State of New Jersey Common Pension Fund D raised its holdings in shares of Electronic Arts by 195.3% in the third quarter. State of New Jersey Common Pension Fund D now owns 393,099 shares of the game software company’s stock valued at $47,364,000 after purchasing an additional 260,000 shares during the last quarter. First Hawaiian Bank acquired a new stake in shares of Electronic Arts in the third quarter valued at approximately $390,000. MERIAN GLOBAL INVESTORS UK Ltd acquired a new stake in shares of Electronic Arts in the third quarter valued at approximately $66,023,000. Finally, Coastline Trust Co raised its holdings in shares of Electronic Arts by 4.3% in the third quarter. Coastline Trust Co now owns 31,685 shares of the game software company’s stock valued at $3,818,000 after purchasing an additional 1,310 shares during the last quarter. 95.84% of the stock is currently owned by hedge funds and other institutional investors.

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Electronic Arts Company Profile (NASDAQ:EA)

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. The company develops and publishes games and services across various genres, such as sports, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v.

Further Reading: Market Capitalization in the Stock Market

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