Bank of America Corp DE Reduces Position in Electronic Arts Inc. $EA

Key Points

• Bank of America reduced its Electronic Arts position by 23.4% in the first quarter, selling 319,412 shares and retaining 1.05 million shares valued at approximately $213.5 million.
• Other institutional investors were generally buyers, and hedge funds and institutional investors collectively own 90.23% of EA’s stock.
• EA shares opened at $209.70, near their 52-week high, but analyst sentiment remained cautious: the consensus rating was “Reduce” with an average price target of $202.27.

Bank of America Corp DE trimmed its position in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 23.4% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,047,088 shares of the game software company's stock after selling 319,412 shares during the period. Bank of America Corp DE owned 0.42% of Electronic Arts worth $213,470,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also added to or reduced their stakes in the company. Resona Asset Management Co. Ltd. grew its position in Electronic Arts by 12.5% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 108,908 shares of the game software company's stock worth $22,185,000 after purchasing an additional 12,095 shares during the period. Swiss National Bank lifted its holdings in Electronic Arts by 8.0% in the first quarter. Swiss National Bank now owns 704,400 shares of the game software company's stock valued at $143,606,000 after acquiring an additional 51,900 shares during the period. OFI Invest Asset Management purchased a new stake in Electronic Arts in the 4th quarter worth approximately $8,745,000. Tokio Marine Asset Management Co. Ltd. grew its stake in shares of Electronic Arts by 500.3% during the 4th quarter. Tokio Marine Asset Management Co. Ltd. now owns 47,805 shares of the game software company's stock worth $9,768,000 after purchasing an additional 39,841 shares during the period. Finally, Mizuho Markets Americas LLC acquired a new stake in shares of Electronic Arts during the 4th quarter worth approximately $2,043,000. Hedge funds and other institutional investors own 90.23% of the company's stock.

Electronic Arts Price Performance

Shares of NASDAQ EA opened at $209.70 on Wednesday. The firm has a 50-day simple moving average of $205.38 and a 200-day simple moving average of $203.05. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $52.92 billion, a price-to-earnings ratio of 60.09, a price-to-earnings-growth ratio of 2.35 and a beta of 0.64. Electronic Arts Inc. has a 52 week low of $159.10 and a 52 week high of $210.20.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Weiss Ratings raised shares of Electronic Arts from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 18th. Citigroup increased their price target on Electronic Arts from $202.00 to $204.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Wall Street Zen raised Electronic Arts to a "hold" rating in a report on Saturday, June 6th. Zacks Research lowered Electronic Arts from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, Argus cut shares of Electronic Arts from a "buy" rating to a "hold" rating in a research note on Thursday, May 28th. One analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $202.27.

Trending Headlines about Electronic Arts

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

• Positive Sentiment: EA reported fiscal first-quarter revenue of approximately $1.99 billion and diluted EPS of $1.58, exceeding analyst expectations of $1.48 billion in revenue and $0.82 EPS. Revenue rose 18.9% year over year, while operating profit and net income also increased sharply. Electronic Arts Releases Q1 Fiscal 2027 Earnings
• Positive Sentiment: The completed acquisition provides shareholders with a definitive transaction outcome and gives the new owners greater flexibility to invest in EA’s game portfolio and long-term strategy outside the public markets. Electronic Arts Completes $55 Billion Sale
• Neutral Sentiment: Because EA is now privately owned, its stock may no longer trade normally on public exchanges; the acquisition, rather than future quarterly performance, is expected to determine the final value delivered to shareholders. EA Is Now Officially Owned by Saudi Arabia’s Public Investment Fund and Private Equity
• Negative Sentiment: EA missed quarterly bookings expectations, with engagement declining after the launch of the latest Battlefield installment. The weakness raises concerns about post-launch player retention and near-term franchise momentum. Electronic Arts Misses Quarterly Bookings Estimates
• Negative Sentiment: Reported insider activity showed selling without purchases over the past six months, including sales by CEO Andrew Wilson and other senior executives. This may weigh on investor sentiment, although the completed buyout makes the signal less relevant than it would be for a continuing public company.

Insiders Place Their Bets

In other Electronic Arts news, EVP Jacob J. Schatz sold 5,000 shares of the business's stock in a transaction on 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 transaction, the executive vice president owned 42,287 shares of the company's stock, valued at approximately $8,507,721.53. The trade was a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Vijayanthimala Singh sold 1,200 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $203.00, for a total transaction of $243,600.00. Following the transaction, the insider directly owned 26,360 shares in the company, valued at approximately $5,351,080. The trade was a 4.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 31,206 shares of company stock worth $6,292,058. 0.24% of the stock is currently owned by insiders.

Electronic Arts 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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