Capital International Investors Cuts Holdings in Electronic Arts Inc. $EA

Key Points

• Capital International Investors cut its EA stake by 17.8% in Q3, selling 2,105,573 shares and remaining with 9,691,141 shares (about 3.89% of the company) valued at roughly $1.95 billion.
• Insiders have been selling: CFO Stuart Canfield sold 1,500 shares and CEO Andrew Wilson sold 5,000 shares recently, and insiders offloaded 27,600 shares totaling $5.59 million over the last quarter (insiders now own 0.24% of EA).
• EA trades around $199, has a 52-week range of $131.15–$204.88 and a market cap of ~$49.9 billion, with a quarterly dividend of $0.19 (0.4% yield) and an ex-dividend date of Feb. 25.

Capital International Investors lowered its holdings in Electronic Arts Inc. (NASDAQ:EA - Free Report) by 17.8% in the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 9,691,141 shares of the game software company's stock after selling 2,105,573 shares during the quarter. Capital International Investors owned 3.89% of Electronic Arts worth $1,954,737,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently modified their holdings of EA. Bank of Montreal Can grew its holdings in shares of Electronic Arts by 48.3% in the 3rd quarter. Bank of Montreal Can now owns 484,525 shares of the game software company's stock worth $97,729,000 after acquiring an additional 157,843 shares during the period. Banque Cantonale Vaudoise boosted its position in Electronic Arts by 2.8% during the third quarter. Banque Cantonale Vaudoise now owns 18,587 shares of the game software company's stock worth $3,749,000 after purchasing an additional 510 shares in the last quarter. Vestcor Inc boosted its position in Electronic Arts by 43.2% during the third quarter. Vestcor Inc now owns 112,668 shares of the game software company's stock worth $22,725,000 after purchasing an additional 33,982 shares in the last quarter. WINTON GROUP Ltd increased its position in shares of Electronic Arts by 234.8% in the third quarter. WINTON GROUP Ltd now owns 32,498 shares of the game software company's stock valued at $6,555,000 after buying an additional 22,790 shares in the last quarter. Finally, DLD Asset Management LP purchased a new position in shares of Electronic Arts in the third quarter valued at $4,006,000. 90.23% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other Electronic Arts news, CFO Stuart Canfield sold 1,500 shares of the firm's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $199.90, for a total transaction of $299,850.00. Following the sale, the chief financial officer directly owned 5,897 shares of the company's stock, valued at $1,178,810.30. This trade represents a 20.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Andrew Wilson sold 5,000 shares of Electronic Arts stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $204.11, for a total transaction of $1,020,550.00. Following the sale, the chief executive officer owned 43,858 shares of the company's stock, valued at approximately $8,951,856.38. This trade represents a 10.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 27,600 shares of company stock worth $5,589,823. Company insiders own 0.24% of the company's stock.

Electronic Arts Stock Performance

NASDAQ EA opened at $199.27 on Tuesday. Electronic Arts Inc. has a fifty-two week low of $131.15 and a fifty-two week high of $204.88. The stock has a market cap of $49.87 billion, a price-to-earnings ratio of 74.91, a price-to-earnings-growth ratio of 2.36 and a beta of 0.75. The business has a fifty day moving average of $202.32 and a 200-day moving average of $196.50. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.24.

Electronic Arts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 18th. Investors of record on Wednesday, February 25th will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Wednesday, February 25th. Electronic Arts's dividend payout ratio (DPR) is currently 28.57%.

Wall Street Analyst Weigh In

EA has been the topic of several recent research reports. UBS Group reiterated a "neutral" rating on shares of Electronic Arts in a research report on Wednesday, February 4th. Zacks Research downgraded shares of Electronic Arts from a "strong-buy" rating to a "hold" rating in a report on Wednesday, November 19th. Finally, Citigroup reduced 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. Three investment analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $188.30.

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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