Electronic Arts (NASDAQ:EA) Shares Gap Up - Still a Buy?

Key Points

• Electronic Arts' stock price gapped up from $193.35 to $203.50 before closing at $202.88 with a trading volume of over 9 million shares.
• Analysts have mixed ratings on Electronic Arts, with one lowering it to "hold" while others raised ratings to "buy," highlighting a price target range from $167.00 to $192.00.
• The company recently declared a quarterly dividend of $0.19, which translates to an annualized dividend yield of 0.4% and a payout ratio of 19.05%.

Electronic Arts Inc. (NASDAQ:EA - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $193.35, but opened at $203.50. Electronic Arts shares last traded at $202.88, with a volume of 9,177,075 shares trading hands.

Analysts Set New Price Targets

A number of analysts recently commented on the company. HSBC lowered Electronic Arts from a "buy" rating to a "hold" rating and set a $191.00 price target on the stock. in a report on Monday. Arete raised shares of Electronic Arts from a "neutral" rating to a "buy" rating and set a $192.00 price objective for the company in a report on Tuesday, August 5th. Citigroup reissued a "neutral" rating on shares of Electronic Arts in a report on Friday. UBS Group set a $167.00 price target on Electronic Arts and gave the stock a "neutral" rating in a report on Friday, August 1st. Finally, Roth Capital raised shares of Electronic Arts from a "neutral" rating to a "buy" rating and upped their target price for the stock from $175.00 to $185.00 in a report on Tuesday, June 24th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and seventeen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $168.64.

Electronic Arts Price Performance

The stock has a market cap of $50.62 billion, a P/E ratio of 50.71, a price-to-earnings-growth ratio of 2.94 and a beta of 0.75. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.24. The business's 50 day moving average price is $167.67 and its two-hundred day moving average price is $154.67.

Electronic Arts Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Stockholders of record on Wednesday, August 27th were given a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Wednesday, August 27th. Electronic Arts's payout ratio is currently 19.05%.

Insider Transactions at Electronic Arts

In other news, insider Laura Miele sold 2,500 shares of Electronic Arts stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $171.69, for a total value of $429,225.00. Following the completion of the transaction, the insider owned 55,592 shares of the company's stock, valued at $9,544,590.48. The trade was a 4.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $172.79, for a total transaction of $863,950.00. Following the sale, the chief executive officer owned 47,393 shares in the company, valued at approximately $8,189,036.47. The trade was a 9.54% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 30,800 shares of company stock valued at $5,077,960. 0.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Electronic Arts

Several institutional investors and hedge funds have recently bought and sold shares of EA. Caldwell Trust Co purchased a new position in Electronic Arts during the second quarter valued at approximately $756,000. Osaic Holdings Inc. boosted its stake in shares of Electronic Arts by 18.5% in the second quarter. Osaic Holdings Inc. now owns 20,994 shares of the game software company's stock worth $3,337,000 after acquiring an additional 3,273 shares during the period. Thrivent Financial for Lutherans lifted its holdings in Electronic Arts by 36.3% in the 2nd quarter. Thrivent Financial for Lutherans now owns 22,221 shares of the game software company's stock worth $3,549,000 after purchasing an additional 5,919 shares in the last quarter. MASTERINVEST Kapitalanlage GmbH bought a new stake in shares of Electronic Arts during the second quarter valued at approximately $2,196,000. Finally, Stance Capital LLC bought a new position in shares of Electronic Arts during the second quarter worth $1,385,000. 90.23% of the stock is currently owned by hedge funds and other 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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