Capital Group Private Client Services Inc. Sells 60,701 Shares of Electronic Arts Inc. $EA

Key Points

• Capital Group Private Client Services Inc. slashed its Electronic Arts stake by 95.7% in the fourth quarter, selling 60,701 shares and leaving it with 2,726 shares worth about $557,000.
• Institutional ownership remains high, with several other investors adding to or starting positions in EA; overall, 90.23% of the stock is owned by institutions.
• Analyst sentiment is mostly cautious: EA has a consensus Hold rating with a price target of $196.64, while recent insider sales were also disclosed by executives including Laura Miele and CEO Andrew Wilson.

Capital Group Private Client Services Inc. trimmed its holdings in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 95.7% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,726 shares of the game software company's stock after selling 60,701 shares during the quarter. Capital Group Private Client Services Inc.'s holdings in Electronic Arts were worth $557,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. OPTIMAS CAPITAL Ltd bought a new stake in Electronic Arts in the 3rd quarter worth approximately $1,815,000. Greenland Capital Management LP purchased a new stake in shares of Electronic Arts in the 3rd quarter valued at $5,569,000. Swiss Life Asset Management Ltd boosted its stake in shares of Electronic Arts by 75.8% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 85,245 shares of the game software company's stock valued at $17,194,000 after purchasing an additional 36,769 shares in the last quarter. Nisa Investment Advisors LLC boosted its stake in shares of Electronic Arts by 9.2% in the 4th quarter. Nisa Investment Advisors LLC now owns 110,851 shares of the game software company's stock valued at $22,650,000 after purchasing an additional 9,297 shares in the last quarter. Finally, Barometer Capital Management Inc. purchased a new stake in shares of Electronic Arts in the 3rd quarter valued at $4,503,000. 90.23% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on EA shares. 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. Argus cut Electronic Arts from a "buy" rating to a "hold" rating in a research note on Thursday, May 28th. Citigroup raised their price objective on Electronic Arts from $202.00 to $204.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Finally, Wall Street Zen raised Electronic Arts to a "hold" rating in a research note on Saturday. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $196.64.

Electronic Arts Stock Performance

Electronic Arts stock opened at $203.00 on Monday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.22. The firm has a 50-day moving average of $202.21 and a 200-day moving average of $202.30. The firm has a market cap of $50.90 billion, a P/E ratio of 58.17, a P/E/G ratio of 2.24 and a beta of 0.65. Electronic Arts Inc. has a 1-year low of $145.54 and a 1-year high of $204.88.

Electronic Arts Dividend Announcement

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

Insider Transactions at Electronic Arts

In other news, insider Laura Miele sold 2,500 shares of Electronic Arts stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $200.54, for a total value of $501,350.00. Following the sale, the insider directly owned 40,843 shares in the company, valued at approximately $8,190,655.22. This trade represents a 5.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Wilson sold 5,066 shares of Electronic Arts stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.66, for a total value of $1,021,609.56. Following the completion of the sale, the chief executive officer owned 85,974 shares in the company, valued at approximately $17,337,516.84. This represents a 5.56% decrease in their ownership of the stock. 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. In the last quarter, insiders sold 39,906 shares of company stock worth $8,032,336. Corporate insiders own 0.24% of the company's stock.

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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