Electronic Arts Sees Unusually Large Options Volume (NASDAQ:EA)

Key Points

• Traders bought 8,725 call options on EA on Monday, roughly a 203% increase versus the average volume of 2,881 calls, signaling unusually large options activity.
• EA traded at $203.76—near its 52‑week high of $204.88—with a market cap of $50.99B and a high P/E of 76.6, while analysts' consensus is a "Hold" with an average target of $188.30.
• Insiders have been selling recently (including the CFO and CEO), with 27,600 shares sold last quarter and insiders now owning only 0.24% of the stock.

Electronic Arts Inc. (NASDAQ:EA - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 8,725 call options on the stock. This is an increase of approximately 203% compared to the average volume of 2,881 call options.

Electronic Arts Stock Performance

EA traded up $0.16 during midday trading on Monday, hitting $203.76. 348,962 shares of the company traded hands, compared to its average volume of 2,532,062. The company's 50-day moving average is $201.23 and its 200 day moving average is $200.60. 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 firm has a market capitalization of $50.99 billion, a PE ratio of 76.60, a price-to-earnings-growth ratio of 2.19 and a beta of 0.73. Electronic Arts has a 52 week low of $131.15 and a 52 week high of $204.88.

Electronic Arts Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several brokerages have commented on EA. Citigroup lowered their price objective on shares of Electronic Arts from $207.00 to $202.00 and set a "neutral" rating for the company in a report on Wednesday, February 4th. UBS Group reaffirmed a "neutral" rating on shares of Electronic Arts in a research note on Wednesday, February 4th. Three analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $188.30.

Insider Activity

In related news, CFO Stuart Canfield sold 1,500 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $199.90, for a total transaction of $299,850.00. Following the completion of the sale, the chief financial officer directly owned 5,897 shares of the company's stock, valued at approximately $1,178,810.30. This trade represents a 20.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Andrew Wilson sold 5,000 shares of the stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $204.26, for a total transaction of $1,021,300.00. Following the transaction, the chief executive officer owned 38,858 shares of the company's stock, valued at approximately $7,937,135.08. The trade was a 11.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 27,600 shares of company stock worth $5,553,319 in the last quarter. 0.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Electronic Arts

A number of institutional investors and hedge funds have recently modified their holdings of EA. EverSource Wealth Advisors LLC lifted its holdings in Electronic Arts by 2.4% in the third quarter. EverSource Wealth Advisors LLC now owns 2,108 shares of the game software company's stock valued at $425,000 after acquiring an additional 50 shares during the period. Salomon & Ludwin LLC lifted its stake in shares of Electronic Arts by 32.8% in the 4th quarter. Salomon & Ludwin LLC now owns 231 shares of the game software company's stock worth $47,000 after purchasing an additional 57 shares during the period. Ballentine Partners LLC boosted its holdings in shares of Electronic Arts by 1.2% in the third quarter. Ballentine Partners LLC now owns 4,783 shares of the game software company's stock worth $965,000 after buying an additional 59 shares during the last quarter. Physician Wealth Advisors Inc. grew its position in Electronic Arts by 5.9% during the third 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 during the period. Finally, Macroview Investment Management LLC increased its holdings in Electronic Arts by 6.2% during the fourth 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 during the last quarter. 90.23% of the stock is currently owned by hedge funds and other 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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