Electronic Arts Target of Unusually High Options Trading (NASDAQ:EA)

Key Points

• Unusually large put activity: Traders bought 29,822 put options on EA on Friday — a 1,092% increase versus the average put volume — signaling elevated bearish bets or hedging interest.
• Insider selling: Executives including CFO Stuart Canfield and Laura Miele sold shares (total insider sales of 27,600 shares worth $5.59M last quarter), though corporate insiders still own just 0.24% of the stock.
• Mixed market view: EA shares fell about 1.3% to $198.18, the company declared a $0.19 quarterly dividend, and analysts have a consensus rating of "Hold" with a $188.30 target.

Electronic Arts Inc. (NASDAQ:EA - Get Free Report) was the recipient of unusually large options trading on Friday. Stock traders acquired 29,822 put options on the stock. This represents an increase of 1,092% compared to the average volume of 2,502 put options.

Insiders Place Their Bets

In related news, CFO Stuart Canfield sold 1,500 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $199.90, for a total transaction of $299,850.00. Following the completion of the transaction, the chief financial officer owned 5,897 shares of the company's stock, valued at approximately $1,178,810.30. This represents a 20.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Laura Miele sold 2,500 shares of the business's stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $199.53, for a total transaction of $498,825.00. Following the sale, the insider directly owned 48,343 shares of the company's stock, valued at $9,645,878.79. This represents a 4.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,600 shares of company stock valued at $5,589,823 in the last quarter. Corporate insiders own 0.24% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Walter Public Investments Inc. raised its holdings in Electronic Arts by 41.7% in the 3rd quarter. Walter Public Investments Inc. now owns 48,017 shares of the game software company's stock valued at $9,685,000 after buying an additional 14,134 shares during the last quarter. NatWest Group plc acquired a new position in shares of Electronic Arts during the third quarter worth $10,414,000. Great Lakes Advisors LLC acquired a new position in shares of Electronic Arts during the third quarter worth $1,025,000. Bank of Montreal Can grew its stake in shares of Electronic Arts by 14.3% in the second quarter. Bank of Montreal Can now owns 326,682 shares of the game software company's stock worth $52,171,000 after purchasing an additional 40,848 shares during the last quarter. Finally, Principal Financial Group Inc. increased its holdings in Electronic Arts by 35.4% in the third quarter. Principal Financial Group Inc. now owns 390,971 shares of the game software company's stock valued at $78,859,000 after purchasing an additional 102,248 shares during the period. Institutional investors own 90.23% of the company's stock.

Electronic Arts Stock Down 1.3%

Shares of EA stock traded down $2.58 during trading on Friday, hitting $198.18. 2,569,347 shares of the company were exchanged, compared to its average volume of 2,591,875. The firm has a market capitalization of $49.59 billion, a price-to-earnings ratio of 74.50, a P/E/G ratio of 2.40 and a beta of 0.75. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.93 and a current ratio of 0.93. Electronic Arts has a twelve month low of $131.15 and a twelve month high of $204.88. The business's 50-day simple moving average is $202.55 and its 200 day simple moving average is $195.75.

Electronic Arts Dividend Announcement

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

Analyst Ratings Changes

Several research analysts recently commented on the stock. Citigroup cut their price target on shares of Electronic Arts from $207.00 to $202.00 and set a "neutral" rating on the stock in a report on Wednesday, February 4th. UBS Group reiterated a "neutral" rating on shares of Electronic Arts in a research note on Wednesday, February 4th. Finally, Zacks Research lowered Electronic Arts from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, November 19th. Three analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $188.30.

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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