American Century Companies Inc. Decreases Stock Holdings in Electronic Arts Inc. $EA

Key Points

• American Century Companies Inc. has reduced its shareholding in Electronic Arts Inc. (EA) by 15.8%, selling 59,418 shares during the 1st quarter and now holding 317,813 shares valued at approximately $45.9 million.
• Major investors like Vanguard Group, Invesco, and Goldman Sachs have increased their stakes in Electronic Arts, showcasing continued institutional interest in the stock despite American Century's divestment.
• The company's stock is currently trading around $170.68 with an annual low of $115.21 and high of $180.90, alongside a recent announcement of a $0.19 quarterly dividend to be paid out in September.

American Century Companies Inc. lessened its position in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 15.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 317,813 shares of the game software company's stock after selling 59,418 shares during the period. American Century Companies Inc. owned 0.12% of Electronic Arts worth $45,930,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Nuveen LLC purchased a new stake in shares of Electronic Arts in the 1st quarter worth about $203,537,000. Goldman Sachs Group Inc. lifted its position in shares of Electronic Arts by 62.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,253,505 shares of the game software company's stock worth $470,197,000 after purchasing an additional 1,254,194 shares during the period. ING Groep NV lifted its position in shares of Electronic Arts by 3,477.8% in the 1st quarter. ING Groep NV now owns 1,163,747 shares of the game software company's stock worth $168,185,000 after purchasing an additional 1,131,220 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of Electronic Arts by 689.3% in the 1st quarter. Assenagon Asset Management S.A. now owns 1,238,496 shares of the game software company's stock worth $178,987,000 after purchasing an additional 1,081,589 shares during the period. Finally, Pacer Advisors Inc. lifted its position in shares of Electronic Arts by 1,366.6% in the 1st quarter. Pacer Advisors Inc. now owns 1,118,685 shares of the game software company's stock worth $161,672,000 after purchasing an additional 1,042,407 shares during the period. Institutional investors own 90.23% of the company's stock.

Analyst Upgrades and Downgrades

EA has been the subject of several research analyst reports. Roth Capital raised shares of Electronic Arts from a "neutral" rating to a "buy" rating and raised their target price for the stock from $175.00 to $185.00 in a research report on Tuesday, June 24th. Arete Research set a $192.00 price target on shares of Electronic Arts in a research report on Tuesday, August 5th. The Goldman Sachs Group raised their price objective on shares of Electronic Arts from $135.00 to $155.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Wedbush restated an "outperform" rating and set a $210.00 price objective on shares of Electronic Arts in a research note on Tuesday, July 22nd. Finally, Bank of America lifted their price target on shares of Electronic Arts from $166.00 to $168.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and fifteen have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $167.12.

Electronic Arts Price Performance

NASDAQ:EA traded down $0.15 on Friday, reaching $171.40. 1,707,305 shares of the company's stock traded hands, compared to its average volume of 3,402,479. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.24. The stock has a 50-day simple moving average of $158.41 and a 200-day simple moving average of $147.58. The firm has a market cap of $42.89 billion, a PE ratio of 42.96, a P/E/G ratio of 2.21 and a beta of 0.72. Electronic Arts Inc. has a 12 month low of $115.21 and a 12 month high of $180.90.

Electronic Arts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Wednesday, August 27th will be issued a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, August 27th. This represents a $0.76 dividend on an annualized basis and a yield of 0.4%. Electronic Arts's dividend payout ratio (DPR) is currently 19.05%.

Insider Buying and Selling at Electronic Arts

In other news, EVP Jacob J. Schatz sold 1,200 shares of the business's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $174.65, for a total value of $209,580.00. Following the transaction, the executive vice president owned 27,248 shares of the company's stock, valued at approximately $4,758,863.20. The trade was a 4.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Andrew Wilson sold 5,000 shares of the business's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $171.05, for a total transaction of $855,250.00. Following the completion of the transaction, the chief executive officer directly owned 52,393 shares in the company, valued at $8,961,822.65. This trade represents a 8.71% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 26,200 shares of company stock valued at $4,142,660. 0.24% of the stock is currently owned by corporate insiders.

Electronic Arts 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.