Electronic Arts Inc. (NASDAQ:EA) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts give Electronic Arts a consensus "Hold" rating from 23 brokerages (1 sell, 19 hold, 3 buy) with an average 12‑month price target of $188.30.
• EA shares trade near $203.55 with a market cap of $50.94B, a high valuation (P/E ~76.5, PEG 2.19) and a 12‑month range of $141.19–$204.88; the company pays a $0.19 quarterly dividend ($0.76 annual, ~0.4% yield).
• Insider sales: CEO Andrew Wilson and EVP Laura Miele sold shares on April 15 under pre‑arranged Rule 10b5‑1 plans; insiders have sold 27,600 shares (~$5.54M) in the past three months and own about 0.24% of the stock.

Shares of Electronic Arts Inc. (NASDAQ:EA - Get Free Report) have been given a consensus recommendation of "Hold" by the twenty-three brokerages that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, nineteen have given a hold rating and three have assigned a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $188.30.

Several equities research analysts have recently weighed in on the stock. UBS Group reiterated a "neutral" rating on shares of Electronic Arts in a research report on Wednesday, February 4th. Citigroup decreased their price objective on shares of Electronic Arts from $207.00 to $202.00 and set a "neutral" rating for the company in a research report on Wednesday, February 4th.

Electronic Arts Trading Up 0.1%

EA opened at $203.55 on Wednesday. Electronic Arts has a twelve month low of $141.19 and a twelve month high of $204.88. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.24. The company has a fifty day moving average of $201.55 and a 200-day moving average of $202.08. The stock has a market cap of $50.94 billion, a PE ratio of 76.52, a price-to-earnings-growth ratio of 2.19 and a beta of 0.73.

Electronic Arts Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, February 25th were given a dividend of $0.19 per share. The ex-dividend date was Wednesday, February 25th. This represents a $0.76 annualized dividend and a dividend yield of 0.4%. Electronic Arts's dividend payout ratio is 28.57%.

Insider Activity

In other news, insider Laura Miele sold 2,500 shares of the stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $203.21, for a total transaction of $508,025.00. Following the completion of the sale, the insider directly owned 43,343 shares in the company, valued at $8,807,731.03. This represents a 5.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $203.21, for a total transaction of $1,016,050.00. Following the sale, the chief executive officer owned 23,858 shares of the company's stock, valued at approximately $4,848,184.18. This trade represents a 17.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 27,600 shares of company stock valued at $5,544,159. 0.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its holdings in Electronic Arts by 2.4% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 2,108 shares of the game software company's stock valued at $425,000 after buying an additional 50 shares in the last quarter. Salomon & Ludwin LLC grew its holdings in Electronic Arts by 32.8% in the 4th quarter. Salomon & Ludwin LLC now owns 231 shares of the game software company's stock valued at $47,000 after buying an additional 57 shares in the last quarter. Ballentine Partners LLC grew its holdings in Electronic Arts by 1.2% in the 3rd quarter. Ballentine Partners LLC now owns 4,783 shares of the game software company's stock valued at $965,000 after buying an additional 59 shares in the last quarter. Physician Wealth Advisors Inc. grew its holdings in Electronic Arts by 5.9% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 1,053 shares of the game software company's stock valued at $212,000 after buying an additional 59 shares in the last quarter. Finally, Macroview Investment Management LLC grew its holdings in Electronic Arts by 6.2% in the 4th quarter. Macroview Investment Management LLC now owns 1,065 shares of the game software company's stock valued at $218,000 after buying an additional 62 shares in the last quarter. 90.23% of the stock is owned by institutional investors.

Electronic Arts Company Profile

Electronic Arts Inc NASDAQ: EA is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA's product lineup spans several well-known franchises and genres.

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