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

Key Points

• Electronic Arts saw unusually large options activity on Wednesday, with traders buying 5,437 put options, about 41% above the average volume. That suggests some investors were positioning for downside or hedging risk.
• Insider selling continued, including shares sold by EVP Jacob J. Schatz and CFO Stuart Canfield, though both transactions were tied to tax withholding or a 10b5-1 plan. Over the past 90 days, insiders have sold 39,906 shares worth about $8.1 million.
• EA remains in focus for its pending $55 billion take-private deal, while also launching a new advertising division aimed at embedding brands into gameplay and live sports experiences. The stock closed near $202.92 and pays a quarterly dividend of $0.19.

Electronic Arts Inc. (NASDAQ:EA - Get Free Report) saw unusually large options trading on Wednesday. Stock traders bought 5,437 put options on the company. This is an increase of approximately 41% compared to the average volume of 3,849 put options.

Insider Activity at Electronic Arts

In other news, EVP Jacob J. Schatz sold 5,000 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total transaction of $1,005,950.00. Following the sale, the executive vice president owned 42,287 shares of the company's stock, valued at $8,507,721.53. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Stuart Canfield sold 1,500 shares of the firm's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $201.36, for a total value of $302,040.00. Following the sale, the chief financial officer directly owned 25,991 shares in the company, valued at approximately $5,233,547.76. This represents a 5.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 39,906 shares of company stock valued at $8,060,033 over the last 90 days. Insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Ascentis Independent Advisors acquired a new stake in Electronic Arts during the 1st quarter worth approximately $27,000. MV Capital Management Inc. acquired a new stake in Electronic Arts during the 4th quarter worth approximately $28,000. Ameriflex Group Inc. lifted its holdings in Electronic Arts by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 138 shares of the game software company's stock worth $28,000 after purchasing an additional 69 shares during the last quarter. Asset Planning Inc acquired a new stake in Electronic Arts during the 1st quarter worth approximately $32,000. Finally, Whipplewood Advisors LLC acquired a new stake in Electronic Arts during the 1st quarter worth approximately $32,000. 90.23% of the stock is currently owned by institutional investors.

Electronic Arts News Summary

Here are the key news stories impacting Electronic Arts this week:

• Positive Sentiment: EA launched EA Advertising, a new division aimed at placing brands more directly inside gameplay and live sports experiences. That could open a fresh revenue stream and improve monetization over time. Electronic Arts Introduces EA Advertising, Launching Brands Directly Into Gameplay and Live Experiences
• Positive Sentiment: Coverage around EA’s pending $55 billion take-private deal continues to support the stock, as investors watch for progress and potential completion of the transaction. Electronic Arts (EA) Shows Why Its $55 Billion Buyout Case Rests on More Than Deal Momentum
• Neutral Sentiment: Oak-Eagle AcquireCo extended the expiration and settlement dates tied to EA’s senior note tender offers and consent solicitations, indicating the acquisition process is still moving forward, but not yet closed. Oak-Eagle AcquireCo, Inc. Announces Extension of the Expiration Time and Settlement Date
• Negative Sentiment: Several insiders, including CEO Andrew Wilson and executive Laura Miele, sold shares this week. The sales were under pre-arranged trading plans, but insider selling can still weigh on sentiment. Andrew Wilson Form 4 filing

Electronic Arts Stock Down 0.0%

EA stock traded down $0.10 during mid-day trading on Wednesday, reaching $202.92. The company had a trading volume of 923,758 shares, compared to its average volume of 2,191,135. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.05 and a quick ratio of 1.05. The stock has a 50 day simple moving average of $202.21 and a two-hundred day simple moving average of $202.38. The company has a market capitalization of $50.88 billion, a price-to-earnings ratio of 58.14, a PEG ratio of 2.29 and a beta of 0.65. Electronic Arts has a 52 week low of $146.97 and a 52 week high of $204.88.

Electronic Arts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Wednesday, May 27th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Wednesday, May 27th. Electronic Arts's dividend payout ratio (DPR) is currently 21.78%.

Wall Street Analysts Forecast Growth

EA has been the topic of a number of recent research reports. Citigroup lifted their target price on Electronic Arts from $202.00 to $204.00 and gave the company a "neutral" rating in a research report on Thursday, May 7th. Wall Street Zen raised Electronic Arts to a "hold" rating in a research report on Saturday, June 6th. Argus lowered Electronic Arts from a "buy" rating to a "hold" rating in a research report on Thursday, May 28th. Finally, Weiss Ratings raised Electronic Arts from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, May 18th. Two research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $196.64.

About Electronic Arts

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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