Electronic Arts Inc. (NASDAQ:EA) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Electronic Arts Inc. (NASDAQ:EA) has received a consensus recommendation of "Moderate Buy" from analysts, with a target price of approximately $167.12.
• Recently, several firms revised their price targets, with HSBC setting a new objective of $190.00, while Bank of America increased theirs to $168.00.
• The company declared a quarterly dividend of $0.19, representing a 0.4% yield, which will be paid to shareholders on September 17th.

Shares of Electronic Arts Inc. (NASDAQ:EA - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-eight analysts that are covering the firm, MarketBeat Ratings reports. Fifteen research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $167.1154.

A number of research analysts recently weighed in on EA shares. Moffett Nathanson reiterated a "neutral" rating and issued a $163.00 price objective on shares of Electronic Arts in a research note on Wednesday, May 7th. Oppenheimer lifted their price objective on shares of Electronic Arts from $170.00 to $185.00 and gave the company an "outperform" rating in a research note on Wednesday, May 7th. Arete Research set a $192.00 price objective on shares of Electronic Arts in a research note on Tuesday, August 5th. Wall Street Zen lowered shares of Electronic Arts from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Wedbush reiterated an "outperform" rating and issued a $210.00 price objective on shares of Electronic Arts in a research note on Tuesday, July 22nd.

Insiders Place Their Bets

In other Electronic Arts news, CFO Stuart Canfield sold 1,000 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $151.32, for a total value of $151,320.00. Following the completion of the sale, the chief financial officer directly owned 14,533 shares of the company's stock, valued at $2,199,133.56. The trade was a 6.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Vijayanthimala Singh sold 1,000 shares of the business's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $159.53, for a total transaction of $159,530.00. Following the completion of the sale, the insider directly owned 37,131 shares of the company's stock, valued at $5,923,508.43. This represents a 2.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 29,229 shares of company stock valued at $4,452,664 over the last three months. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Electronic Arts

Several hedge funds and other institutional investors have recently modified their holdings of the company. Putney Financial Group LLC purchased a new stake in Electronic Arts in the fourth quarter worth about $26,000. Salomon & Ludwin LLC lifted its holdings in Electronic Arts by 70.1% in the second quarter. Salomon & Ludwin LLC now owns 165 shares of the game software company's stock worth $26,000 after buying an additional 68 shares during the period. Opal Wealth Advisors LLC purchased a new stake in Electronic Arts in the first quarter worth about $28,000. Bank of Jackson Hole Trust lifted its holdings in Electronic Arts by 56.4% in the first quarter. Bank of Jackson Hole Trust now owns 208 shares of the game software company's stock worth $30,000 after buying an additional 75 shares during the period. Finally, MTM Investment Management LLC purchased a new stake in Electronic Arts in the second quarter worth about $30,000. 90.23% of the stock is owned by institutional investors.

Electronic Arts Stock Performance

Electronic Arts stock traded down $4.34 during mid-day trading on Friday, reaching $174.67. The company's stock had a trading volume of 3,428,521 shares, compared to its average volume of 3,477,202. Electronic Arts has a 12-month low of $115.21 and a 12-month high of $180.90. The company has a market capitalization of $43.70 billion, a P/E ratio of 43.78, a PEG ratio of 2.25 and a beta of 0.72. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.84 and a current ratio of 0.84. The firm's fifty day moving average price is $156.13 and its two-hundred day moving average price is $146.04.

Electronic Arts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, August 27th will be paid a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, August 27th. This represents a $0.76 annualized dividend and a yield of 0.4%. Electronic Arts's payout ratio is currently 19.05%.

Electronic Arts Company Profile

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.