Electronic Arts (NASDAQ:EA) Hits New 1-Year High - Still a Buy?

Key Points

• Electronic Arts' stock reached a new 52-week high of $171.90 during trading, closing at $170.86 with a trading volume of 15,529 shares.
• Several analysts have increased their price targets for the company, with a consensus rating of "Moderate Buy" and an average target price of $166.35.
• The company announced a $0.19 quarterly dividend, representing a 0.4% yield and scheduled to be paid on September 17th to stockholders of record as of August 27th.

Electronic Arts Inc. (NASDAQ:EA - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday . The company traded as high as $171.90 and last traded at $170.86, with a volume of 15529 shares changing hands. The stock had previously closed at $167.64.

Analysts Set New Price Targets

EA has been the topic of a number of research reports. Citigroup restated a "neutral" rating and issued a $153.00 price objective (up previously from $139.00) on shares of Electronic Arts in a report on Thursday, May 29th. Morgan Stanley raised their target price on Electronic Arts from $135.00 to $148.00 and gave the company an "equal weight" rating in a research note on Wednesday, May 7th. Argus set a $170.00 price target on Electronic Arts in a research report on Friday, May 16th. Hsbc Global Res raised Electronic Arts from a "hold" rating to a "strong-buy" rating in a report on Wednesday, May 7th. Finally, Bank of America upped their price objective on Electronic Arts from $166.00 to $168.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 30th. Sixteen analysts have rated the stock with a hold rating, eleven have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Electronic Arts has a consensus rating of "Moderate Buy" and an average target price of $166.35.

Electronic Arts Stock Performance

The company has a debt-to-equity ratio of 0.24, a current ratio of 0.84 and a quick ratio of 0.84. The company has a 50 day moving average of $153.17 and a two-hundred day moving average of $144.14. The company has a market capitalization of $43.40 billion, a PE ratio of 43.55, a PEG ratio of 2.16 and a beta of 0.72.

Electronic Arts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.4%. Electronic Arts's payout ratio is presently 19.05%.

Insider Buying and Selling

In related news, insider Laura Miele sold 2,500 shares of Electronic Arts stock in a transaction on Friday, August 1st. The stock was sold at an average price of $155.49, for a total value of $388,725.00. Following the transaction, the insider owned 58,092 shares in the company, valued at approximately $9,032,725.08. This trade represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew Wilson sold 6,563 shares of the firm's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $151.18, for a total value of $992,194.34. Following the completion of the transaction, the chief executive officer directly owned 70,059 shares in the company, valued at $10,591,519.62. This trade represents a 8.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 30,729 shares of company stock valued at $4,677,124. Company insiders own 0.24% of the company's stock.

Institutional Trading of Electronic Arts

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Electronic Arts by 0.5% during the first quarter. Vanguard Group Inc. now owns 29,052,085 shares of the game software company's stock worth $4,198,607,000 after buying an additional 150,438 shares during the period. Capital International Investors lifted its stake in shares of Electronic Arts by 5.2% in the fourth quarter. Capital International Investors now owns 12,156,791 shares of the game software company's stock valued at $1,778,553,000 after buying an additional 605,796 shares in the last quarter. Ninety One UK Ltd lifted its stake in shares of Electronic Arts by 4.6% in the second quarter. Ninety One UK Ltd now owns 4,355,950 shares of the game software company's stock valued at $695,645,000 after buying an additional 193,442 shares in the last quarter. Independent Franchise Partners LLP lifted its stake in shares of Electronic Arts by 2.3% in the first quarter. Independent Franchise Partners LLP now owns 3,945,702 shares of the game software company's stock valued at $570,233,000 after buying an additional 88,767 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in shares of Electronic Arts by 15.6% in the first quarter. Invesco Ltd. now owns 3,733,481 shares of the game software company's stock valued at $539,563,000 after buying an additional 504,760 shares in the last quarter. 90.23% of the stock is owned by institutional investors.

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.

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